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GenaCL600 [577]
3 years ago
12

The First National Bank of Nelsonville has no excess reserves when a new deposit of $10,000 is made. The required reserve ratio

for all banks is 5 percent. How much is the largest possible increase in checking account balances throughout the entire banking system
Business
1 answer:
victus00 [196]3 years ago
8 0

Answer:

$950

Explanation:

Reserve ratio is defined as the percentage amount of deposit that a bank is instructed by the governing central bank to keep as cash reserve. This is used to control the money supply in the economy as the the check - able amount that are subjected to withdrawal is limited to the funds available after the reserve ratio has been considered.

Workings

New deposit - $10,000

Required reserve ratio - 5%

No existing excess ratio as at the time of deposit.

Reserve ratio - 5%*10000 = 50

Increase in checking account = 1000-50

= $950

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Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good r
snow_lady [41]

Answer:

The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.

Explanation:

The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.

As residual income is referred to income that calculated after deducting all debt and expenses occur on the project. ROI is a way to predict the profit of the project while residual income calculates the net income that the organisation generates from the project.

3 0
3 years ago
Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that s
Nostrana [21]

Answer:

The amount that Lena will invest in fund B would be $4000.

Explanation:

Given information -

Amount invested in fund A - $6000

Return earned on fund A - 6%

Let us assume amount invested in fund B be x

Return earned on fund B - 1%

Return on both funds together - 4%

Let us assume the total amount of fund invested be ($6000 + x)

Now using simple equation , we will take out the value of x which is the amount invested in fund B -

$6000 X 6% + x X 1% = 4% ( $6000 + x )

= $360 + .01 x = $240 + .04 x

= $360 - $240 = .04 x - .01 x

$120 = .03 x

x = $120 / .03

= $4000.

4 0
3 years ago
Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no
kogti [31]

Answer:

The manufacturer should announce a guaranteed mileage of 44528 miles

Explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean \mu and standard deviation \sigma, the zscore of a measure X is given by:

Z = \frac{X - \mu}{\sigma}

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

\mu = 47900, \sigma = 2050

What guaranteed mileage should the manufacturer announce

Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.

Z = \frac{X - \mu}{\sigma}

-1.645 = \frac{X - 47900}{2050}

X - 47900 = -1.645*2050

X = 44528

The manufacturer should announce a guaranteed mileage of 44528 miles

6 0
3 years ago
Read 2 more answers
You are considering the purchase of a new machine to help produce a new product line being introduced. The machine is expected t
miss Akunina [59]

Answer:

A. 4.3 batches

B. 215 parts

C. 3 batches

D. 184 parts

Explanation:

Please find explanation attached

7 0
3 years ago
Explain the relationship between consumers and producers in economic growth and activity
Strike441 [17]

The economy consists of producers, who make and sell goods and services, and consumers, who buy the goods and services.

Producers rely on consumers to buy from them, and consumers rely on producers to provide the goods and services they want.

Money allows this relationship to work.

3 0
3 years ago
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