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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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How much interest is earned in just the third year on a $1,000 deposit that earns 7% interest compounded annually?
Sav [38]

Answer:

Interest earn= $80.14

Explanation:

Giving the following information:

PV= $1,000

i= 7%

n= 3

<u>First, we will calculate the future value at the second year:</u>

FV= PV*(1+i)^n

FV= 1,000*(1.07^2)

FV= 1,144.9

<u>Now, for the third year:</u>

FV= 1,144.9*1.07= 1,225.04

Interest earn= 1,225.04 - 1,144.9= $80.14

4 0
2 years ago
In the open-economy macroeconomic model, if a country’s supply of loanable funds shifts right, then
Contact [7]

Answer:

According to the situation given in the question, if a country's supply of loan able funds shift rights , then A) the net capital outflow will increase and so the exchange rate will fall.

Explanation:

According to the situation given in the question , the supply of funds available for loan, depends upon the national savings, so if there is high amounts of national savings available it means the funds are available for the borrowers, who are in need of funds for their investment projects. And the demand for funds available for loan comes from the domestic investment and net capital outflow.

If the supply of funds are high in the economy then obviously the interest rate will also come down and the net capital outflow will be more.  

4 0
3 years ago
Read the scenario. Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is look
Bogdan [553]
Buying both a car and a home.
8 0
3 years ago
Read 2 more answers
If the total value of goods exported from a nation is less than the total value of goods imported to the nation, the nation is e
kompoz [17]

If the total value of goods exported from a nation is less than the total value of goods imported to the nation, the nation is experiencing a Trade deficit.

The difference between imports and exports is known as the trade deficit or negative balance of trade (BOT). A trade deficit develops when an economy spends more on imports than on exports. It can be computed for various commodities and services as well as for cross-border transactions.

The difference between the monetary value of a country's exports and imports over a specific time period is known as the balance of trade deficit, commercial balance, or net exports. A distinction between a trade balance for products and one for services is occasionally drawn.

Learn more about trade deficit here

brainly.com/question/24473707

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8 0
1 year ago
Selected data from Emporia Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable $ 600,000 $ 480,000 Al
svet-max [94.6K]

Answer:

Compute the accounts receivable turnover for 2018.

4.29 times

Compute the inventory turnover for 2018

3.6 times

Compute the net margin for 2017.

24.58%

Explanation:

Compute the accounts receivable turnover for 2018.

accounts receivable turnover = Sales / Accounts receivable

                                                  =  $ 2,400,000 / $ 560,000

                                                  = 4.29 times

Compute the inventory turnover for 2018

Inventory turnover = cost of Sales / inventory

                                = $1,800,000 /  $ 500,000

                                = 3.6 times

Compute the net margin for 2017.

net margin = Net Profit / Sales × 100

                  = (2,400,000-1,810,000) / 2,400,000  × 100

                  = 24.58%

3 0
3 years ago
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