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maksim [4K]
3 years ago
13

A commercial bank has excess reserves of $500 and a required reserve ratio of 20%; it grants a loan of $1000 to a borrower. If t

he borrower writes a check for $1000 which is deposited in another commercial bank, the first bank will be short of reserves, after the check has been cleared, in the amount of:
Business
1 answer:
koban [17]3 years ago
8 0

Answer:

$500

Explanation:

Calculation for amount that the first bank will be short of reserves, after the check has been cleared

Using this formula

Reserve shortage=Loan granted(check)-Excess reserves

Let plug in the formula

Reserve shortage=$1,000-$500

Reserve shortage=$500

Therefore the first bank will be short of reserves, after the check has been cleared, in the amount of:$500

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Answer:

The correct answer is letter "C": Ability of a firm to pay the interest on its debt.

Explanation:

The cash coverage ratio is a metric that measures a company's ability to pay its financial obligations. Generally, the higher the coverage ratio the better for the business to meet its debt obligations. It is best to compare coverage ratios of companies in the same industry or sector in the economy. Comparisons across industries are not useful as companies in different industries use debt in different ways.

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3 years ago
Q: What determines the balance of production and consumption?
ANTONII [103]
Resources is referred to as the available asset that can be used for further purposes may it be for business or consumption. This is what determines the balance between the production and consumption for without these, production would not be possible and if nothing is produced, nothing would also be consumed. Resources come in different forms and each has its own availability. Answer for this would be C.
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Answer:

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3. Tax benefits

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6 0
3 years ago
In her spare time, Sharon is the chair for a local nonprofit organization. The project committee is attempting to determine what
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3 years ago
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Answer:

Natural experiment

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