1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VikaD [51]
2 years ago
13

Money Bank has $500 million dollars in deposits and has 12 percent reserve ratio, how much can Money Bank lend

Business
1 answer:
bixtya [17]2 years ago
6 0

Answer:

Money Bank can lend up to $4,167 million.

Explanation:

a) Data and Calculations:

Total deposits = $500 million

Reserve ratio = 12%

Money created by Money Bank = $500/12% = $4,166,666,667

b) The total amount of money which Money Bank can create and lend is dependent on its customers' deposits and the reserve ratio.  This amount can be calculated by dividing the total deposits by the reserve ratio.  This implies that the less the reserve ratio, the more money Money Bank can create and lend out to customers.

You might be interested in
When the demand for smartphones increased in Preteresia, a country in Eastern Europe, the smartphone manufacturers started impor
Elan Coil [88]

Based on the actions of Preteresia , we can infer that this scenario best describes <u>Global Convergence</u>.

<h3>What is Global Convergence?</h3>
  • It refers to the current trend of various dimensions of the human life being integrated across nations.
  • Describes the integration of dimensions such as business, culture, the economy, and political policy across nations.

Preteresia in helping Abresia build those facilities, is engaging in global convergence because the industries in both countries are being integrated to allow for more efficient smartphone manufacturing.

In conclusion, this is global convergence.

Find out more on the effects of global convergence at brainly.com/question/18077255.

7 0
2 years ago
What is the name for the common currency of Europe?
Alika [10]
The euro is the common currency across Europe.
7 0
3 years ago
Read 2 more answers
Kitchen and Laundry and More has annual credit sales of $2,473,701 and cost of goods sold of $1,838,207. The average accounts re
Agata [3.3K]

Answer:

32.59 days

Explanation:

DSO = Average receivables / Sales Revenue X 365

= $56,736 / (2,473,701 - 1,838,207) x 365

= $56,736 / (635,494) x 365

= 32.59 days

3 0
2 years ago
Tax a tax adjustment must be made in determining the cost of
RUDIKE [14]
This isn't even a question
4 0
3 years ago
_____ comes into play when a manager makes a decision with a bias weighing short-term costs and benefits more heavily than longe
Stolb23 [73]

Answer:

Discounting the future cash flows

Explanation:

The reason is that the future returns will devalue with money received because of the Inflation. The money received after some years will result in fall in its value. So the amount received after some year of an equal amount to the amount today will not be worth the same. So discounting of future value receipts helps in decision making in todays value.

6 0
3 years ago
Other questions:
  • A company has a process that results in 36000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
    5·1 answer
  • Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy
    9·1 answer
  • TJ's has a market value equal to its book value. Currently, the firm has excess cash of $218,500, other assets of $897,309, and
    5·1 answer
  • Real-world economies get hit with lots of shocks to aggregate demand and real shocks. Categorize each scenario as an aggregate d
    6·1 answer
  • Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to
    9·1 answer
  • A law firm would be considered a A. Service company B. Manufacturer C. Merchandise company D. None of the above
    14·1 answer
  • Relationship between democracy and free market economy?
    14·1 answer
  • If unemployed workers decide to stop looking for a job and instead enroll in further education, how will the number of employed
    14·1 answer
  • The number of minorities in the workforce is?
    7·1 answer
  • Select the account that would be decreased if the owner of hillary's hair salon decides to withdraw $40 for personal use. multip
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!