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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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Based on the systems viewpoint, a restaurant’s ability to accept cash, credit, or both, is associated with which part of a syste
faltersainse [42]

Based on the systems viewpoint, a restaurant’s ability to accept cash, credit, or both, is associated with transformational processes

This is further explained below.

<h3>What is transformational processes?</h3>

A transformation process may be thought of as any activity or combination of activities that takes two or more inputs, modifies and adds to those inputs, and creates outputs for customers or clients.

The demand from the outside world to conform to ever-shifting circumstances and needs in order to achieve one's business objectives is what drives the long-term change management process which is known as business process transformation.

In conclusion, according to the systems view, transformational processes are connected to the ability of a restaurant to accept cash, credit, or both forms of payment.

Read more about transformational processes

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complete question

Based on the systems viewpoint, a restaurant's ability to accept cash, credit, or both, is associated with which part of a system? Multiple Choice

financial

transformational processes

outputs

feedback

inputs

8 0
2 years ago
A basket of goods costs $800 in the u.s. in belgium the basket of goods costs 640 euros and the exchange rate is .80 euros per u
nignag [31]

Belgium but not Japan

3 0
4 years ago
Fox brothers enterprises, inc., agreed to convey to canfield a lot, lot 23, in a subdivision known as fox estates, together with
valkas [14]
Idk sorry im retared
3 0
3 years ago
Kareem owns a pickup truck that he uses exclusively in his business. The adjusted basis is $22,000, and the fair market value is
Novosadov [1.4K]

Answer:

The "Kareem" realized loss on the exchange is <u>$8000.</u>

Explanation:

The adjusted basis is = $22000

"Fair market value" is = $14000

"Kareem" exchanges the truck for another truck = worth $14000

"Realized gain" or "Realized loss = basis in the truck - exchange value

Realized gain or loss = $22000 - $14000

Realized gain or loss = $8000

Kareem's loss on the exchange is $8000.

There is no "recognized gain" or "recognized loss"  because the exchange is like a kind exchange which is not documented.

5 0
4 years ago
National Financial​ Services, Inc. invested $ 24,000 to acquire 5,000 shares of Stonebridge​ Investments, Inc. on March​ 15, 201
Savatey [412]

Answer:

A. Gain on Disposal will be credited

Explanation:

In this question we have to compare the purchase price and sale price per share which is shown below:

The Purchase price per share would be

= Total amount invested ÷ number of shares acquired

= $24,000 ÷ 5,000 shares

= $4.8 per share

And, the sale price per share would be

= Total amount ÷ number of shares sold

= $13,250 ÷ 2,000 shares

= $6.625 per share

Since the sale price per share is higher than the purchase price per share which reflects the gain.

5 0
4 years ago
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