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Vanyuwa [196]
3 years ago
12

calculate how much credit created by commercial bank when there is a deposit of 80000, reserve requirement is 8% and withdrawl i

s 35%?
Business
1 answer:
Scrat [10]3 years ago
6 0

Answer:

Amount of credit created by commercial bank = 47,840

Explanation:

Given:

Total deposit in bank = 80,000

Reserve requirement = 8%

Withdrawal = 35%

Find:

Amount of credit created by commercial bank

Computation:

Amount available for withdrawal = Total deposit in bank[1 - Reserve requirement]

Amount available for withdrawal = [80,000][1-8%]

Amount available for withdrawal = 73,600

Amount of withdrawal = Amount available for withdrawal[35%]

Amount of withdrawal = 73,600[35%]

Amount of withdrawal = 25,760

Amount of credit created by commercial bank = 73,600 - 25,760

Amount of credit created by commercial bank = 47,840

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Economists make assumptions to represent their political bias. focus their thinking. make models easier for students to understa
Sati [7]

Answer:

The correct answer is letter "D": better match the complexity of the real world.

Explanation:

Economists create models to <em>reflect real-world phenomena through simplified concepts</em>. Those models tend to adopt the most variables possible of economic events to analyze them in-deep, find out why they happen, attempt preventing them or finding a solution for them if feasible.

7 0
3 years ago
Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll inform
alekssr [168]

Answer:

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $2,767.98
  • computer programmer $2,295.48
  • administrator $1,993.98

Explanation:

                                           regular earnings     overtime    withholding  

                                                                                              allowances

Consultant                        $4,000 per week       N/A                2

Computer programmer          $60 per hour        1.5                  1

Administrator                          $50 per hour          2                  2

computer programmer worked 50 hours = ($60 x 40) + ($60 x 10 x 1.5) = $3,300

administrator worked 48 hours = ($50 x 40) + ($50 x 8 x 2) = $2,800

Social security taxes:

  • Consultant = 6% x $4,000 = $240                        
  • Computer programmer = 6% x $3,300 = $198        
  • Administrator = 6% x $2,800 = $168

Medicare taxes:

  • Consultant = 1.5% x $4,000 = $60                        
  • Computer programmer = 1.5% x $3,300 = $49.50        
  • Administrator = 1.5% x $2,800 = $42

Federal income taxes:

  • Consultant: amount subject to withholding = $4,000 - (2 x $75) = $3,850. Federal income taxes = $356.90 + [28% x ($3,850 - $1,796) = $932.02                        
  • Computer programmer = amount subject to withholding = $3,300 - (1 x $75) = $3,225. Federal income taxes = $356.90 + [28% x ($3,225 - $1,796) = $757.02            
  • Administrator = amount subject to withholding = $2,800 - (2 x $75) = $2,650. Federal income taxes = $356.90 + [28% x ($2,650 - $1,796) = $596.02  

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $4,000 - ($240 + $60 + $932.02) = $2,767.98
  • computer programmer $3,300 - ($198 + $49.50 + $757.02) = $2,295.48
  • administrator $2,800 - ($168 + $42 + $596.02) = $1,993.98
6 0
3 years ago
Suppose a competitive firm has​ cost, C​ = ​(0.002q3​) ​+ (22q)​ + 750, marginal​ cost, MC​ = 0.006q2​ + 22, and​ revenue, R​ =
aniked [119]

Answer:

 Options B and C are correct.

  • Marginal profit is negative.
  • Profit is positive.

Explanation:

At q = 150

R = 80q = 80(150) = 12,000

C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800

R > C so first is incorrect.

MR = 80

MC = 0.006(150 x 150) + 22 = 135 + 22 = 157

MC > MR so B is correct.

Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200

Profit is positive.

Marginal profit = MR - MC = 80 - 157 = - 77

MR is Negative

3 0
3 years ago
Which type of financing refers to giving up some control of the business to raise funds
grigory [225]

Answer:

venture capital financing,

Explanation:

To obtain venture capital financing, business founders often have to give up some ownership and control of their business.

4 0
3 years ago
If a company increases its fixed costs for product​ b, then the contribution margin per unit will.
Evgen [1.6K]

If a company increases its fixed costs for product​ b, then the contribution margin per unit will remain the same.

<h3>What is fixed cost?</h3>
  • Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces.
  • They frequently occur again and again, like monthly rent or interest payments.
  • These expenses are often capital expenses as well.
  • Contrast this with variable costs, which depend on volume (and are based on the quantity produced) and are unknowable at the start of the accounting year.
  • Some variable costs are affected by the type of fixed costs.
<h3>What is company?</h3>
  • A corporation, often known as co., is a legal entity that stands for a group of people with a certain goal who are either natural, legal, or a combination of the two.
  • Members of the company work together for a shared cause in order to accomplish clearly stated objectives.

Learn more about fixed cost here:

brainly.com/question/17100497

#SPJ4

6 0
2 years ago
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