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Oduvanchick [21]
3 years ago
7

Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number

. a. How much excess reserves does the bank hold
Business
1 answer:
stellarik [79]3 years ago
4 0

Answer: $100

Explanation:

If the reserve requirement is 20% then the required reserves being held by the company is:

= Total deposits * reserve requirement

= 8,000 * 20%

= $1,600

The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:

Excess reserves = Reserves - Required reserves

= 1,700 - 1,600

= $100

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Explanation:

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To determine the six-month interest payment amount on a bond, you would take one-half of the market rate times the face value of
MrRa [10]

Answer:

False

Explanation:

To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.

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3 years ago
When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value
gulaghasi [49]

Answer:

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Explanation:

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Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>

7 0
3 years ago
The employees of an organization have heard rumors about rapidly dropping profits and impending layoffs. The grapevine is abuzz
Karolina [17]

Answer:

A. neutralize the rumor by openly confirming any parts that may be true.

Explanation:

Here are the options to this question:

A. neutralize the rumor by openly confirming any parts that may be true.

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D. fire employees found spreading false stories.

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I hope my answer helps you

3 0
3 years ago
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Darya [45]

Answer:

Offshoring

Explanation:

offshoring is the  process of  moving an aspect of a business process overseas with the intention of  reducing cost.

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From the above explanation, we can conclude that Prextos is planning to employ  Offshoring to cut down losses.

7 0
3 years ago
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