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Contact [7]
3 years ago
14

demand deposits of $10,000, the reserve requirement is .05, the Federal Funds rate is 6% and the Discount rate is 4% . How much

money can it loan out
Business
1 answer:
kolezko [41]3 years ago
6 0

Answer:

The amount of money the bank can loan out is $200,000.

Explanation:

a) Data and Calculations

Demand deposits = $10,000

Reserve requirement = 0.05

Federal Funds rate = 6%

Discount rate = 4%

The money the bank can loan out = Demand Deposit/Reserve Requirement

= $10,000/0.05

= $200,000

b) The amount that the commercial bank can loan out is determined by the amount of its deposits and the ratio of the reserve requirement.  The reserve requirement ratio gives the percentage of deposits that commercial banks must hold as reserves in their vaults. This implies that if the required reserve ratio is 5 percent, for instance, the bank must hold 5 percent of its deposits as required reserves. If demand deposits are $10,000, then $500 ($10,000 x .05) must be held as required reserves and then the bank can lend out $9,500 to the first customer.  However, this amount will expand because the customer keeps the amount within the bank, enabling the bank to lend out $200,000 from a deposit of $10,000.  The total amount the bank can lend out is calculated as $10,000/0.05.

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Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing =\frac{350}{700}=0.5

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = =\frac{350}{700}=0.5

So allocated amount for bottling = 0.5×$162000 = $81000

3 0
3 years ago
Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout?
MAVERICK [17]

Answer:

C) Takt times at workstations are dynamic.

Explanation:

A fixed-position layout can be regarded as a layout that allow products to stay in one place, and movement of workers and machinery can be moved to it once needed. Some of the Products that are not possible to move are airplanes, construction projects as well as ships. Fixed-position layout is usually used when dealing with product which are too large or heavy to move. Disadvantages is that it takes space, and administration burden is usually high. Factors that could complicate the techniques for addressing the fixed-position layout are;

✓There is limited space at virtually all sites.

✓The volume of materials needed is dynamic.

✓At different stages of a project, different materials are needed; therefore, different items become critical as the project develops.

5 0
2 years ago
The approved detail design resulting from the __________ serves as a basis for making the decision to begin production. Systems
wel

Answer: Critical Design Review

Explanation:

A Critical Design Review is referred to as a review that's fine in order o ensure that a system can be able to move into fabrication, and test and also ensure that the stated performance requirements are met.

The approved detail design resulting from the critical design review serves as a basis for making the decision to begin production.

3 0
2 years ago
When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total de
Lady_Fox [76]

Answer: All three methods result in the same amount of total depreciation

Explanation:

Depreciation is when the value of an asset has been reduced because the asset has been used or due to wear and tear.

When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total depreciation is the straight line method, the double declining balance method, and the activity method.

Therefore, option the answer will be that "all three methods result in the same amount of total depreciation". This is because the amount charged for depreciation can not exceed the cost involved and will be identical for the three methods

4 0
3 years ago
Your client has called for help with that bank fees in QuickBooks Online you began by asking them to open the bank and tab in th
viktelen [127]
This doesn’t make sense :(
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3 years ago
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