Answer:
The bank will be able to lend:
$42,105,263 ($8 million/ 0.19)
Explanation:
The above amount which the bank can lend from the $8 million received from the Federal Reserve for a customer is a function of $8 million deposit in a customer's account and the reserve ratio. This is called the money multiplier.
The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend. The level of Reserves and deposit liabilities determine the amount a bank can lend out.
The process by which banks create more money than the physical money is called money creation. This shows that a bank creates more money in the economy through its lending activities.
<span>I expect 100,000 prisoners in the system in 2020, because there always will be a criminals or killers. For example, someone kills his wife because she cheated on him or drug dealers who rob gas stations so they can buy some drugs etc.</span>
Answer:
The retained earnings at the beginning of the year was $ 2,253,000
.
Explanation:
Retained earnings at the end of the year = Retained earnings at the beginning of the year + Net income - Dividends
Retained earnings at the beginning = Retained earnings at the end of the year - Net income + Dividends
= $2,640,000 - $412,000 + $25,000
= $ 2,253,000
Therefore, the retained earnings at the beginning of the year was $ 2,253,000
.
Answer:
$94.93
Explanation:
In this question we are asked to calculate the current price of the stock.
To answer the question, we employ a mathematical approach.
The current price of the stock is computed as shown below:
Present value = Future value / (1 + r )^n
where r is the required return and n is the number of years
Future value is calculated as follows:
= Annual dividend / required return
= $ 5.95 / 0.0405
= $146.91 Approximately
So the present value will be:
= $ 146.91/ 1.0405^11
= $94.93 Approximately