Discuss the nature of three industries and how each is applied for the growth the national economy

National Bank currently has $1,550 million in transaction deposits on its balance sheet. The current reserve requirement is 14 p

jenyasd209 [6]

Answer:

Explanation:

Purchase of securities by the federal bank

To purchase any securities the trade dealers at desk firstly call to government securities dealers of major commercial and investment banks. The govt. securities dealers provide the list of securities they want to sale.

This list also shows the maturity, denomination, and prices of securities. The FRNBY traders purchase securities at the lowest prices. They will notify the government bond agencies for the payment to selling dealers for the securities.

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $43.071

Liabilities- Reserve Accounts: $43.071

National Bank

Assets- Loans: $674.786

Reserve Deposits at Fed: $43.071

Liabilities- Transaction deposits: $717.857

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.50))) × ($56 million − $42 million) = $25.000 million

Loans:

$725.000 million − $43.500 million = $681.500 million

Transaction deposits:

$700 million + ($14 × (1/(0.06 + 0.50)) = $725.000 million

Reserve deposits at Fed:

$725.000 million × 0.06 = $43.500 million

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $44.100

Liabilities- Reserve Accounts: $44.100

National Bank

Assets- Loans: $690.900

Reserve Deposits at Fed: $44.100

Liabilities- Transaction deposits: $735.000

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.70))) × ($56 million − $42 million) × 0.90 = $35.000 million

Loans:

$735.000 million - $44.100 million = $690.900 million

Transaction deposits:

$700 million + ($14 × 0.90 × (1/(0.06 + 0.3))) = $735.000 million

Reserve deposits at Fed:

$735.000 million × 0.06 = $44.100 million

6 0

3 years ago

What are three things to look at closely on the contract?

kicyunya [14]

The date,
signature
rules.

3 0

3 years ago

Read 2 more answers

In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a

Jlenok [28]

Answer:

$Q=nq=\frac{n}{n+1}\frac{a-c}{b}$

if n=1 (monopoly) we have $Q^M=\frac{1}{2}\frac{a-c}{b}$

if n goes to infinity (approaching competitive level), we get the competition quantity that would be $Q^c=\frac{a-c}{b}$

Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

$Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i$

from the FPC we have that

$a-b\sum_{i=1}^n q_i -m -b q_i=0$

$q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}$

since all firms are homogeneous this means that $q_i=q \forall i$

then $q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}$

the industry output is then

$Q=nq=\frac{n}{n+1}\frac{a-c}{b}$

if n=1 (monopoly) we have $Q^M=\frac{1}{2}\frac{a-c}{b}$

if n goes to infinity (approaching competitive level), we get the competition quantity that would be $Q^c=\frac{a-c}{b}$

7 0

2 years ago

The entity’s manufacturing division, whose assets constituted 75% of its total assets at September 30, Year 5 (end of year), was

belka [17]

The event should be presented in the financial statements as follows:

1. The assets side of the balance sheet will be reduced by 75%, with its accompanying accumulated depreciation.

2. The bonded liability on the balance sheet is eliminated by the relevant amount.

3. The journal entry should debit the Bonded Liability and accumulated depreciation, while the assets worth 75% are credited.

4. If the bonded indebtedness is more than 75% of the assets, the company records a profit on disposal on the income statement. Otherwise, it records a loss. If they are equal, there is no profit or loss.

Thus, the difference between the debit and credit entries constitutes either profit or loss on disposal.

Learn more: brainly.com/question/17329408

5 0

2 years ago

Compared with many european countries the party in government system in the united states

ludmilkaskok [199]

<span>Compared with many European countries the party in government system in the united states is less differentiated. (have a lesser amount)

In many European countries, the parties that involved within the government could account to more than 4 parties. Meanwhile, there are only 2 major political parties in the United States, Democratic party and the republican party</span>

4 0

3 years ago

Discuss the nature of three industries and how each is applied for the growth the national economy​

Discuss the nature of three industries and how each is applied for the growth the national economy