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
Ilya [14]
2 years ago
12

The Bank of Key West is not going to have enough reserves at the end of the business day to meet its reserve requirement of 10%.

It currently has two options to borrow money overnight in order to meet the requirement. First, it could borrow money from the Federal Reserve at a rate of 1.15% . Second, it could borrow money from other banks at a rate of 0.25% . What is the federal funds rate, and what is the discount rate? federal funds rate:
Business
1 answer:
CaHeK987 [17]2 years ago
4 0

Answer:

(a) The federal fund rate is the rate at which banks borrows funds from the other banks. So, the federal fund rate in this situation is 0.25%. This is normally applicable for the creditworthy organizations. It is set by the federal open market control. Open market operations is used by the federal bank to control the money supply in an economy and to set the federal fund rate.

(b) The discount is the rate at which banks borrows form the federal reserves account. In the current scenario, the discount rate is 1.15%. It is generally higher than the federal funds rate.

You might be interested in
________ is the ability of a country to produce a specific good at a lower opportunity cost than its trading partners.
Maslowich
Comparative advantage
3 0
3 years ago
If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, how much
Zarrin [17]
<span>If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, how much cash was paid for bond interest? = </span>$806,000
5 0
3 years ago
2 Points
Serhud [2]

Answer:

The minimum wage

Explanation:

5 0
3 years ago
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agree
iVinArrow [24]

Answer: $20,000

Explanation:

The effect of the lease on Lakeside's earnings will be the difference between the earnings from the lease and the cost of the building which will be depreciation.

Depreciation = 2,300,000/25

= $92,000 per year

Earnings per year;

= 28,000 * 4

= $112,000

Increase in earnings = 112,000 - 92,000

= $20,000

6 0
2 years ago
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the
kow [346]

Answer:

$1200

Explanation:

Gross Domestic Product (GDP) is the total market value of all of the final goods and services produced in a country over a particular period of time.

The contribution to GDP can be determined by adding the value created by each of the economic agents involved in the creation of the final goods and services

Arthur = 100 = 100

Bob = 300 - 100 = 200

Camille = 700 -300 = 400

Donita = 1200 - 700 = 500

Total Value 100 +200 +400 +500 = $1200.

You will observe that it is the same as the value of the final good i.e dress. In the production process, other goods involved are referred as intermediate goods

8 0
3 years ago
Other questions:
  • The doctrine that makes a defendant liable even if the defendant is without fault is called...
    8·1 answer
  • Aiden is designing a blog that will allow many company employees and executives to share company news with both the general publ
    15·1 answer
  • Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $12 per hour. Happy Helpers i
    14·1 answer
  • Alicia heard that as a general rule, she should spend no more than one week's pay on rent. If Alicia's pay is $35,256 per year,
    11·2 answers
  • Here are the supply and demand equations for throstles, where p is the price in dollars: D(p) = 40 − p S(p) = 10 + p 1. Draw the
    6·1 answer
  • Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $38
    8·1 answer
  • Carlos does a good job of keeping track of his understanding of the material he is reading, and if he gets confused, he always r
    9·1 answer
  • Bernice Ruel operates Leather Unlimited, a leather shop that sells luggage, handbags, business cases, and other leather goods. D
    8·1 answer
  • Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
    10·1 answer
  • Milan Company issued bonds with a face value of $200,000 on January 1, 2018. The bonds had a 7 percent stated rate of interest a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!