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Oksanka [162]
2 years ago
7

If a bank has $500 million of checkable deposits, a required reserve ratio of 15%, and it holds $126 million reserves, then the

maximum deposit outflow it can sustain without running into reserve deficiency is Group of answer choices $20 million $60 million $71 million $51 million
Business
1 answer:
jarptica [38.1K]2 years ago
8 0

Answer: $51 million

Explanation:

Firstly, we need to calculate the required reserve which will be:

= $500 × 15%

= $500 million × 0.15

= $75 million

Then, the excess reserve will be:

= $126 million - $75 million

= $51 million

Therefore, the maximum deposit outflow it can sustain without running into reserve deficiency is $51 million.

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Answer:

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Explanation:

The computation is shown below:

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3 years ago
For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos
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Answer:

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6 0
3 years ago
Read 2 more answers
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Answer: $230,000

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