The amounts collected by the lender and held in a trust or impound account for future payment are called Reserves.
Reserves are earnings that have been appropriated or set apart, for use for a selected cause in addition down the road. A few examples of specific reserves include capital redemption reserves, contingency reserves, debenture redemption reserves, and dividend equalization reserves. each of these reserves has a particular purpose, but, if important, specific reserves can every so often be used for bills that are not their meant functions.
Reserves may be funded by way of annual working surpluses, or thru a funding plan. These price ranges are considered to be "savings bills" so no fees can be charged without delay to them; the simplest transfer object codes must be utilized to reserve money owed.
A lender is a man or woman, a set (public or non-public), or an economic institution that makes finances available to a person or business with the expectation that the price range could be repaid. Compensation will include the charge of any hobby or costs.
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Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.
<span>The equilibrium price will go down and equilibrium quantity will be indeterminate.
Bumper crop refers to a situation when a certain type of crop exeprience sudden bump in productivity. If at that exact time more people become allergic to this crop, the crop would be overly stocked in the warehouse and the owner would most likely sell it at lower price.</span>
The level of productivity is now approximately 40.6 boxes/hr
<h3>
What is Productivity</h3>
Productivity refers to a ratio between a output volume and volume of input.
<u>Given data</u>
Working hours = 2*8 hours = 16 hours
New productivity = 500 + 0.3*500
New productivity = 650 box/day
New productivity =650/16 box/hour
New productivity = 40.625 box/hour
Hence, the level of productivity is now approximately 40.6 boxes/hr
Therefore, the Option B is correct.
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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
