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mr Goodwill [35]
2 years ago
9

Suppose that a bank has ​$80 in checkable​ deposits, reserves of ​$15 ​, and a reserve requirement of​ 10%. Also assume that the

the bank suffers a ​$6 deposit outflow. If the bank chooses to borrow from the Fed to meet its reserve​ requirement, then the bank would need to borrow ​$nothing . ​(Round your response to the nearest two decimal​ place.)
Business
1 answer:
vazorg [7]2 years ago
8 0

Answer: See explanation

Explanation:

Based on the information given in the question, the amount of borrowing that's required will be:

= [ rr * ( D - O)] - (R-O)

where,

rr = reserve requirement = 10% = 0.1

D = checkable deposits = $80

R = reserves = $15

O = deposits outflow = $6

= [ 0.10 × ($80 - $6)] - ($15 - $6)

= [ 0.10 × $74 ] - $9

= $7.4 - $9

= -$1.60

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How much would you need to deposit in an account now in order to have $3000 in the account in 15 years
Anika [276]

Answer:

Results are below.

Explanation:

Giving the following information:

Future value= $3,000

Number of periods= 15 years

I will assume an interest rate of 8% compounded annually.

<u>To calculate the present value (PV), we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 3,000/1.08^15

PV= $945.73

6 0
2 years ago
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 4,500 per day. FSF supplies hot dogs to local restaurants a
ASHA 777 [7]

Answer:

a. The Optimal run size is 5,086 hot dogs

b. The Number of runs per year is 18

c. The Run length is 1 day

Explanation:

a. According to the given data we have the following:

Daily production, p = 4500 per day

Daily demand, u = 310 per day

Number of working days in a year, Tyear = 295 days

Annual demand, D = Daily demand x number of working days; D = 310 x 295; D = 91450

Setup cost, S = $60

Annual holding cost, H = $0.45 per hot dog

So, Optimal run-size can be calculated as follows:

Q* = √ 2 x annual demand x Setup cost / holding cost per unit per year x √daily production / daily production - daily demand

Q* = √2DS / H x √p / p-u

Q* = (√ 2 x 91450 x 60 / 0.45) x (√ 4500 / 4500 - 310)

Q* = (√24386667) x (√1.07)

Q* = (4938.29) x (1.03)

Q* = 5086.44 = 5,086

Therefore, Optimal run size is 5,086 hot dogs

b) The  Number of runs per year can be calculated as follows:

Cycle time = Q / u

Cycle time = 5086 / 310 = 16 days

Number of runs = Tyear / cycle time

Number of runs = 295 / 16 = 18

The Number of runs per year is 18

c) The Run length or run time can be calculated as follows:

Run time = Q / p

Run time = 5086 / 4500

Run time = 1.13 = 1

Run length is 1 day

6 0
3 years ago
Capital refers to a person's assets<br> True or False
pogonyaev

Answer:

True

Explanation:

4 0
3 years ago
Suppose that demand is perfectly inelastic at 20 million bags, so that consumers demand 20 million bags no matter what the price
ivanzaharov [21]

Answer:

$1.50 per bag

Explanation:

The price that yields a fair rate of return is also the price that makes  economic profit = 0. That sales price = average total cost. So we first must determine total costs for producing 20 million bags:

  • total costs = fixed costs + variable costs = $10 million + (20 million x $1) = $30 million

Now we need to determine average total cost:

  • average total cost at 20 million bags = $30 million / 20 million bags = $1.50 per bag
8 0
3 years ago
The price elasticity of demand for lightbulbs is likely to be unit elastic because
Montano1993 [528]

Answer:

The correct answer is: is relatively inelastic because there are very few substitutes for lightbulbs.

Explanation:

The demand for unit elasticity is an intermediate situation between an elastic and other inelastic demand curve, so that the price elasticity is equal to one, which means that in the face of variations in price, the total ingrowth (price per cantidad), if it decides, if the price increases, the demanded cantidad will diminish in an amount such that the previous and the present in the same ones. The same would occur in the case that the price had fallen, the song would increase so much that the ingrowth remained constant.

7 0
3 years ago
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