Answer: E) all banks whether or not they are members of the Federal Reserve System
Explanation:
The Federal Reserve System requires that all banks regardless of their membership or lack thereof of the FED adhere to the reserve requirements it has established.
The Reserve Requirements are very essentially to the economy as they help control liquidity as well as protect both banks and it's customers from Bank Runs (customers withdrawing their money in massive numbers because they fear for the future of the bank).
Recently though, the FED has reduced this requirement to ZERO to enable banks borrow out more funds amidst Coronavirus concerns.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
$7200.2882
Explanation:
Amount of Mortgage that you need to take is 1mil - 300k = $700,000
Using financial calculator, we have the following inputs:
PV = 700,000 (the amount of mortgage need to take)
I/Y = 1% (annual interest is 12% --> Monthly interest is 12%/12 = 1%)
n = 360 (30 years have 30x12 = 360 months)
FV = 0 (value of mortgage at end of 30th year is nil)
PMT = ? (Monthly mortgage payment - the missing value we need to find)
--> PMT = $7200.2882
Answer: Annual rate of return = 21.89%
Explanation:
Given that,
Expected increase in annual revenues by = $140000
Expected increase in annual expenses by = $88,000 including depreciation
Cost of oil well = $465,000
salvage value at the end of its 10-year useful life = $10,000
Expected Income = Expected increase in annual revenues - Expected increase in annual expenses
= 140000 - 88000
=$52000
Average investment =
= $237500
Annual rate of return =
=
= 21.89%
Answer:
Contribution margin = $19.45
Explanation:
solution
we get here first total Variable cost that is express as
total Variable cost = Direct materials + Direct labor + Variable manufacturing overhead + Sales commissions + Variable administrative expense .....................1
put here value we get
total Variable cost = 5.6 +4.05 + 2.05 + 1.3 + 0.55
total Variable cost = $13.55
so now we get
Contribution margin that is
Contribution margin = Sales - total Variable cost ...................2
Contribution margin = 33 - 13.55
Contribution margin = $19.45