Answer: b
Explanation: i just did it on my test and got B
Answer:
It take to reach your goal is 11 years
Explanation:
given data
initial fixed amount = $42,180.53
deposit additional = $5,000
account totals = $250,000
expect to earn r = 12%
solution
we will apply Future value of annuity that is express as
Future value of annuity = initial fixed amount × 
+ deposit additional × 
......................a
put here value and we get
solve it we get
time t = 11
so it take to reach your goal is 11 years
Answer:
$13.5 million
Explanation:
Fractional Banking System- This is banking system where banks are required by the central banking authority to keep a certain percentage of their total deposit as the minimum reserve which they cannot lend out.
The idea behind this requirement is to help manage liquidity risk- a situation where a bank does not have enough cash to meet its deposit customers demand.
Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.
Therefore the required reserve for this bank = 10% ×$15 million= $1.5 million
Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.
It is calculated as = Total deposit - Required reserve
So we apply this to our question
Excess reserve = $15 million - (10% × $15 million)
= $15 million - $1.5 million
= $13.5 million
Explanation:
C. Both demand and supply change
