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devlian [24]
3 years ago
15

The bank you own has the following balance sheet: Assets Liabilities Reserves $75 million Deposits $500 million Loans $525 milli

on Bank capital $100 million If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions should you take
Business
1 answer:
aliya0001 [1]3 years ago
5 0

Answer:

Explanation:

Calculation of the amount of required reserve as follows:

Required Reserve = Deposit * required reserve ratio

= $500 million * 10%  

= $50 million  

Therefore, the bank must hold $50 million in required reserve.

It currently has $75 million in reserve so this requirement is met.

If the bank suffers a deposit outflow of $50 million

         Assets                                 Liabilities

Reserves - $25 million      Deposits - $450 million

Loans - $525 million         Bank capital - $100 million

So the required reserve is $450 * 10/100 = $45 million.

But in the reserve account we have only 25 million so we are falling short of $20 million. We need to maintain this required reserve so we can take following actions:  1. By borrowing $20 millions from other bank or financial institutions or corporations.  2. We can sell securities of $20 million.  3. We can borrow some money and can raise some money by issuing securities.

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An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
Ainat [17]

Answer:

False

Explanation:

An excise tax is tax levied on some specific goods. It is an indirect tax because it is not levied on customers.

Excise tax would increase the cost of supplying alcohol. This would reduce the supply of tax. A decrease in the supply of tax would increase the price of alcohol

4 0
2 years ago
In 1903, for the first time in u.s. history, congress passed a law declaring that a person holding a specific political viewpoin
mojhsa [17]

In 1903, the congress passed a law declaring that a person holding a specific political viewpoint could be banned from entering the nation, these were the <u>anarchists</u>.

<h3>Who are the anarchists?</h3>

These are group of people that holds the theory that is skeptical of the justification of authority and power, they pursues that cluster of doctrines and attitudes centered on the belief that government is both harmful and unnecessary.

The first person to be call an anarchist was the French writer called Pierre-Joseph Proudhon. In his study, he argued that the real laws of society have nothing to do with authority but rather stem from the nature of society itself and he foresaw the eventual dissolution of authority and the emergence of a natural social order.

Read more about anarchists

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6 0
1 year ago
Jared eagerly agreed to edit the employee handbook but procrastinated until the evening before he was to submit his work. Then h
german

Answer: energy

 

Explanation: In simple words, energy refers to the strength and vitality that must be present to initiate and complete a mental and physical activity. Energy drives the force that leads to changes in variables.

In the given case, Jared initiated the project but lacked vitality off continuing and completing it due to lack of focus and happening of errors. Thus, we can conclude that he lacked energy.

4 0
3 years ago
Critically review the organizational structure recommendations reported within the In-Plant Printer article titled, "Organizing
marin [14]

Answer:

Explanation: see attachment below

4 0
3 years ago
Early in Ford Motor Company’s history, it offered just one car (Model T) to customers. The cars were made exactly the same way f
sergiy2304 [10]

Answer:

Production concept

Explanation:

Under the production concept of marking, it is stated that the consumer desires the products which are most common and are highly available in market which tends to reduce its price.

Therefore, under this the products are priced relatively less, and there is low cost and with huge capacity there is mass distribution.

In the given instance also, the company manufactures a single model of car, same for everyone at low prices.

Therefore, the final answer is:

Production concept

5 0
3 years ago
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