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11111nata11111 [884]
3 years ago
10

When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will:________

Business
1 answer:
worty [1.4K]3 years ago
4 0

Answer:

B). increase by the same amount of deposits

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Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increa
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Answer:

Cashflow from Operating Activities                  $

Net income                                                         61,000

Add: items not involving movement of cash

Depreciation                                                    <u>76,000</u>

                                                                          137,000

Changes in working capital:

Increase in prepaid rent                                   (56,000)

Increase in accounts payable                           <u>11,000</u>

                                                                            92,000

Less: Tax                                                           <u>  16,000</u>

Cashflow from operating activities                   <u> 76,000</u>

Explanation:

Cashflow from operaing activities  using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.

4 0
3 years ago
a commercial bank has $1,000,000 of customer checking deposits and actual reserves of $300,000. if the reserve ratio is 20 perce
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The maximum amount of new loans the bank can extend is $800,000.

<h3>What is the maximum amount of new loans the bank can extend?</h3>

The reserve ratio is the amount of deposits that must be kept as reserves with the central bank. The money that is not kept as reserves can be used to create loans.

Maximum loan amount = deposit - (reserve ratio x deposits)

1,000,000 - (0.2 x 1,000,000) = $800,000

To learn more about required reserves, please check: brainly.com/question/26960248

#SPJ11

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2 years ago
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