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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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3 years ago
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
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Answer: Check attachment and explanation.

Explanation:

a. The question has been solved. Check the attachment.

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Balance sheet (Partial)

December 31

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2 years ago
Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp pro
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Answer:

the equivalent units of production for materials = 352,616 units,

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First Determine the physical units that were Completed and Transferred out

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3 years ago
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