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rosijanka [135]
2 years ago
15

Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent. If this bank sells a bond

for $1,000 to a Federal Reserve Bank, it can expand its loans by a maximum of:_________
A. $1,000.
B. $2,000.
C. $800.
D. $5,000.
Business
1 answer:
artcher [175]2 years ago
4 0

Answer:

D) $5,000.

Explanation:

The money multiplier will determine the bank's capacity to "create" money.

The money multiplier = 1 / reserve ratio = 1 / 20% = 5

If the bank sells a $1,000 bond, it will expand its total loans by the increase in the reserves x the money multiplier = $1,000 x 5 = $5,000

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________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.
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Customer lifetime value basically describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

<h3>What is Customer lifetime value?</h3>

Customer lifetime value can likewise be characterized as the financial value of a customer relationship, in light of the current value of the extended future incomes from the customer relationship.

The motivation behind the customer lifetime value metric is to evaluate the monetary value of every customer. Wear Peppers and Martha Rogers are cited as saying, "a few customers are more equivalent than others."

Customer lifetime value varies from customer benefit or CP (the contrast between the incomes and the expenses related with the customer relationship during a predetermined period) in that CP estimates the past.

Therefore it is the Customer lifetime value which denotes the net value for future profits.

Learn more about Customer lifetime values here:

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5 0
1 year ago
Cash flows from __________ activities are the cash flows from transactions that affect the net income of a company.
neonofarm [45]

Answer: Operating

Explanation:

5 0
2 years ago
A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general
monitta
<span>A court ruling against the wrongful dismissal of employees is a development in the political or legal component of the general. Wrongful dismissal or termination of contract of employment without proper process violates the law of contracts. When this happens, the court takes the employee's rights into consideration in filing damages.</span>
3 0
2 years ago
Which of the following is an argument for free trade?
ipn [44]

i think it's" B" , from the explanation!

Explanation:

Free trade increases the size of the economy as a whole. It allows goods and services to be produced more efficiently. ... Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. Greater competition is also likely to improve quality and choice.

4 0
3 years ago
Based on the spreadsheet below, what is the net cash flow? A 2-column spreadsheet showing Cash Inflows and Cash Outflows. Total
Vadim26 [7]

The net cash flow is <u>A. $290.</u>

<h3>What is net cash flow?</h3>

The net cash flow is the difference between the cash inflows and the cash outflows.  It can be positive or negative.  When the cash inflows are greater than the cash outflows, the net cash flow is positive.  The opposite is the case when the cash outflows exceed the cash inflows.

<h3>Data and Calculations:</h3>
  • Total Cash Inflows = $2,040
  • Total Cash outflows = $1,750
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Thus, the net cash flow based on the spreadsheet is <u>A. $290.</u>

Learn more about the net cash flow here: brainly.com/question/4326360

6 0
2 years ago
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