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zepelin [54]
4 years ago
9

Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve

ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of
Business
1 answer:
ludmilkaskok [199]4 years ago
3 0

Answer: $50000

Explanation:

Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:

= $4500 - (10% × $40000)

= $4500 - $4000

= $500

Then, the money supply that's expanded will be:

= Excess reserve / Reserve ratio

= $5000 / 10%

= $5000 / 0.1

= $50000

Therefore, the answer is $50,000.

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Men's Wearhouse caters to the man who doesn't necessarily enjoy shopping. Its stores are in free-standing locations (not inside
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Answer:

competitive advantage

Explanation:

A competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. The strategies work for any organization, country, or individual in a competitive environment

7 0
4 years ago
Assume that interest rates on 20-year Treasury and 20-year corporate bonds are as follows T-bond = 3.72% AAA = 4.12% A = 4.64% B
Luba_88 [7]

Answer: Default risk differences.

Explanation:

The Default risk is the inherent risk a lender faces that a borrower will not pay them back the debt they want to borrow. The lender will therefore charger a high return to cater for this risk. The higher the risk, the higher the return charged.

T-bonds have no default risk because they are guaranteed by the US Government which is why it's rate is the lowest. For the other bonds, there is something called a Credit rating. Bonds are usually rated on how risky it will be to lend to the company borrowing with AAA being of the lowest risk. Therefore as one goes up from AAA, the bonds will have higher default risks.

4 0
3 years ago
On January 1, 2021, the Dayton Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robo
d1i1m1o1n [39]

Answer:

the journal entry for the acquisition

Debit : Assembly Robots $594,000

Credit:  Cash $594,000

Explanation:

First, identify if the item is an asset, liability, equity or income. The assembly robots represents Assets as economic benefits will flow into the entity as a result of their use.

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5 0
3 years ago
Financial risks are usually less than $100. <br> a. True<br> b. False
iVinArrow [24]
B. False.................
4 0
3 years ago
Read 2 more answers
Campbell, a single taxpayer, earns $438,000 in taxable income and $2,760 in interest from an investment in State of New York bon
ruslelena [56]

Answer:

Currently (assuming a 2020 tax schedule), Campbells tax liability = $47,367.50 + [35% x ($438,000 - $207,350)] = $128,095

municipal bonds are not taxed by the federal government, so Campbell will not pay any taxes on the interests earned on the State of New York bonds.

if he earns an additional $16,900, then his tax liability will be:

$47,367.50 + [35% x ($454,900 - $207,350)] = $134,010

his marginal tax rate = 35%

6 0
3 years ago
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