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DerKrebs [107]
3 years ago
5

Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required an

d excess reserves are equal, then its actual reserves
Business
1 answer:
MAXImum [283]3 years ago
6 0

Answer: $30000

Explanation:

Based on the information given in the question, the required reserve will be:

= $60000 × 25%

= $15000

Since the bank's required and excess reserves are equal, then the excess reserve will be $15000.

Therefore, the actual reserves will be:

= Required reserve + Actual reserve

= $15000 + $15000

= $30000

You might be interested in
Why does actual group productivity never equal potential productivity?
Rama09 [41]

The answer to the question is (C) time is lost to coordinating and organizing group members.

Actual group productivity is never quite equal to the expected productivity mainly because there are other processes involved in the team that the team members must do in order to reach the set common goal. Some of these processes usually include determining how to do the work and distributing the assignments to the right person, as well as setting the roles in the team.

4 0
3 years ago
Review each of the investment opportunities provided by Earll Investments and Pima Financial Trading. In a three paragraph essay
quester [9]

All investment strategies do involve some level of risk. Considering the evidence at my disposal, the first investment is made in the investment opportunity that is most likely to be fake.

The real dangers of investing with this company are those associated with land, stocks, goods, or legal disputes.

What potential profits may I expect from my investment?

The investment's projected return, or what we refer to as the potential return, has the potential to generate significant profit or loss.

Keep in mind that it is regarded as a type of computed metric that enables investors to determine the possible profit an investment may receive; in the example above, it may result in greater profit or loss.

Learn more about investments here;

brainly.com/question/28761792

#SPJ1

5 0
1 year ago
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
ollegr [7]

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

6 0
3 years ago
The landlord of an office building charges tenants $150 per hour for extra HVAC usage after hours. During the last three years,
lidiya [134]

Answer:

$78,375

Explanation:

Actual HVAC usage = 500 + (500 × 10%) = 500 + 50 = 550

Total HVAC income before credit loss = 550 × $150 = $82,500

Total HVAC income before credit loss =  $82,500 - ($82,500 × 5%) = $82,500 - $4,125 = $78,375

Therefore, the approximate heating, ventilation, and air conditioning (HVAC) revenue the landlord will realize is $78,375.

8 0
3 years ago
The following information is provided for Slickers, Inc. for year 2016: • Preferred stock, 5%, $20 par value, 1,500 shares issue
gayaneshka [121]

Answer:

The amount of dividends paid to common stockholders in 2016 is $4000

Explanation:

The cumulative preferred shares are the shares that accumulate dividends in case the dividends on these shares are not paid or paid partially in a year. The accumulated dividends will need to be paid first whenever the company declares dividends.

The amounts of dividends on preferred share for one year is,

Dividends - Preferred shares = 20 * 0.05 * 1500  =  $1500

Thus, the accumulated dividends on these preferred shares at start of 2016 is,

Accumulated dividends - Preferred shares = 1500 * 3 = $4500

The common shares holders are paid after the preferred share holders have been paid. This means that we will deduct the amount of accumulated dividends on preferred shares and the dividends for this year on preferred shares from the total dividends to calculate the amount to be paid to common share holders as dividends.

Common stock dividends =  10000 - (4500 + 1500)   = $4000

3 0
3 years ago
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