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Lady_Fox [76]
2 years ago
5

A bank is required to maintain an average daily balance at the Fed of $700 million. On the first day of the maintenance period i

t maintains a balance of $750 million, the next two days it maintains a balance of $725 million, the next three days it maintains a balance of $625 million, the next three days it maintains a balance of $775 million, the next two days it maintains a balance of $700 million, and the next two days it maintains a balance of $675 million. What does its balance at the Fed has to be on the last day of the maintenance period in order to have a zero cumulative reserve deficit
Business
1 answer:
IRINA_888 [86]2 years ago
3 0

Answer:

$650 million

Explanation:

Calculation to determine the What does its balance at the Fed has to be on the last day of the maintenance period in order to have a zero cumulative reserve deficit

First step is to determine the balance maintained for 13 days in term of product

Using this formula

Product=Numbers of days Balance maintained for those days

Day Balance Product

1 *$750 million=$750 million

2* $725 million=$1,450 million

3* $625 million=$1,875 million

3* $775 million=$2,325 million

2*$700 million=$1,400 million

2*$675 million=$1,350 million

13 $9,150 million

($750 million +$1,450 million+$1,875 million+$2,325 million+$1,400 million+$1,350 million)

Now let calculate the required balance on the last day

Maintained required for 14 days in term of product $9,800 million

(14*$700 million)

Less balance maintained for 13 days in term of product ($9,150 million)

Required balance on the last day $650 million

($9,800 million-$9,150 million)

Therefore its balance at the Fed has to be $650 million on the last day of the maintenance period in order to have a zero cumulative reserve deficit.

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raketka [301]

Answer:

Task 1. Use the table below to find the quantity of mangos demanded at each price.

For a price of $1, the quantity demanded of mangos is:

Q = 150 - 25 ($1)

Q = 125

For $2:

Q = 150 - 25 ($2)

Q = 150 - 50

Q = 100

For $3

Q = 150 - 25 ($3)

Q = 150 - 75

Q = 75

For $4

Q = 150 - 25 ($4)

Q = 150 - 100

Q = 50

For $5

Q = 150 - 25 ($5)

Q = 150 - 125

Q = 25

Task 2. Calculate the price elasticity of demand when the price falls from $5 to $4.

The formula is

Price Elasiticy of Demand (PED) = ((Q2 - Q1) / (Q2 + Q1) / 2 ) / ((P2 - P1) / ((P2 + P1) / 2)

Now, we plug the amounts into the formula

PED = ((50 - 25) / (50 + 25) / 2) / ((4 - 5) / (4 + 5) / 2)

PED = 0.1666 / -0.0556

PED = -3

We take the absolute value, 3, which is a PED higher than 1, meaning that demand is elastic: the quantity demanded in this case increased more than the price.

Task 3. When the price of a mango falls from $5 to $4, does total revenue fall or rise? How do you know?

Revenue = Price x Quantity

Under the first scenario, revenue = $5 x 25 = $125

Under the second scenario, revenue = $4 x 50 = $200

So revenue increased by $75.

Task 4. When the price of a mango falls from $3 to $2, does total revenue fall or rise?

First scenario = $3 x 75 = $225

Second scenario = $2 x 100 = 200

So revenue actually falls by $25.

4 0
2 years ago
Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also can enable the company to
Makovka662 [10]

Answer:

the type of stores to open

Explanation:

Through GIS, Starbucks has been able to determine ideal locations for its new stores. Also, GIS has helped Starbucks understand the types of stores to open in terms of size, features, etc in those new locations to improve and maintain great customer satisfaction convenience of patronage.

Cheers.

6 0
3 years ago
In situations of sticky prices and negative demand shocks, we would expect firms to A. deplete inventories before increasing pro
valina [46]

Answer:

C. Build up inventories before reducing production.

Explanation:

Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." We need to build up inventories before reducing production.

5 0
3 years ago
A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year's free cash flow
True [87]

Answer:

option (D) $52.96

Explanation:

Data provided in the question:

Number of stock outstanding = 120,000 shares

Growth rate, g = 3.8% = 0.038

Free cash flow in the next year =  $648,200

Required rate of return, r = 14% = 0.14

Now,

Stock price is calculated as:

Stock price = \frac{\frac{\textup{Free cash flow}}{r-g}}{\textup{Number of shares outstanding}}

on substituting the respective values, we get

Stock price = \frac{\frac{\$648,200}}{0.14-0.038}}{\textup{120,000}}

or

Stock price = 52.957 ≈ $52.96

Hence,

the correct answer is option (D) $52.96

7 0
3 years ago
Genent​ Industries, Inc.​ (GII), developed standard costs for direct material and direct labor. In​ 2017, GII estimated the foll
faust18 [17]

Answer:

$1,120 unfavorable

Explanation:

The formula to compute the direct manufacturing labor efficiency variance is shown below:

= Standard Rate × (Standard hours - Actual hours)

= $14 × ( 2,100 direct labor hours - 2,180 direct labor hours)

= $14 × - 80 direct labor hours

= -$1,120 unfavorable

The standard hours is computed below:

= Number of containers sold × direct labor

= 3,000 × 0.7

= 2,100  direct labor hours

6 0
3 years ago
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