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Maslowich
2 years ago
10

A bank's actual reserve ratio is the percentage of total deposits a bank actually holds on to. It is made up of the percentage t

hey are required to hold on to, known as the required reserve ratio, plus any extra they choose to hold on to. Suppose Dave's bank has an actual reserve ratio of 12%, and his bank makes a loan to Darlene based on the funds from Dave's deposit. How much does the money supply increase as a result of this second step
Business
1 answer:
Vsevolod [243]2 years ago
5 0

Answer:

The increase in the money supply will be "833333.33".

Explanation:

  • The real reserve ratio of either a lender seems to be the proportion of overall reserves another bank currently occupies onto another.
  • It consists of the proportion they become required to secure forward with, referred to that as the reserve requirement expected, including whatever extra those who happen to retain onto this.

According to the question,

The multiplier will be:

⇒ \frac{1}{RRR}

⇒ \frac{100}{12}

⇒ \frac{25}{3}

So the increase will be:

⇒ 100000\times \frac{25}{3}

⇒ 833333.33

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For a note receivable that was created on November 1, 2018 and is due for repayment on October 31, 2019, what is the time fracti
Alenkasestr [34]

Answer:

Correct answer is A.

2/12

Explanation:

The total time period for which interest will be accrued and will be credited to the interest income account would be for the period November 1,2018 - December 31,2018 i.e 2 months.

5 0
3 years ago
Small differences in growth rates can create large differences in income levels because of:
Bingel [31]

Answer:

Answer is option B, i.e. compounding.

Explanation:

Compounding can be understood as an ability of an organization to generate earnings from previous given income. This leads to small growth compared to the previous one and therefore, leads to large differences in income.    

6 0
3 years ago
Included in Sage Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,870, Debt Investments (t
Sunny_sXe [5.5K]

Answer:

Step 1:

Start by setting it up with the divisor 20 on the left side and the dividend 16 on the right side like this:

           

 2 0 ⟌ 1 6  

Step 2:

The divisor (20) goes into the first digit of the dividend (1), 0 time(s). Therefore, put 0 on top:

       0    

 2 0 ⟌ 1 6  

Step 3:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer below the dividend.

       0    

 2 0 ⟌ 1 6  

       0    

Step 4:

Subtract the result in the previous step from the first digit of the dividend (1 - 0 = 1) and write the answer below.

       0    

 2 0 ⟌ 1 6  

     - 0    

       1    

Step 5:

Move down the 2nd digit of the dividend (6) like this:

       0    

 2 0 ⟌ 1 6  

     - 0    

       1 6  

Step 6:

The divisor (20) goes into the bottom number (16), 0 time(s). Therefore, put 0 on top:

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

Step 7:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer at the bottom:

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

        0  

Step 8:

Subtract the result in the previous step from the number written above it. (16 - 0 = 16) and write the answer at the bottom.

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

     -   0  

       1 6  

You are done, because there are no more digits to move down from the dividend.

The answer is the top number and the remainder is the bottom number.

Therefore, the answer to 16 divided by 20 calculated using Long Division is:

0

16 Remainder

Explanation:

8 0
3 years ago
Glendale Paving currently has 45,000 shares of stock outstanding that sell for $38 per share. Assume no market imperfections or
Aloiza [94]

Answer:

$31. 15

Explanation:

From the question we are required to find the new stock price considering that no market imperfections or tax effects exist.

stock dividend = 22 percent

Amount per share = $38

At a a stock dividend of 22 percent, new share price would be

= $38(1 / 1.22)

= $31.15

3 0
3 years ago
g Call options on IBM-listed stock options are Group of answer choices created by investors and traded on various exchanges. iss
Scorpion4ik [409]

Answer: Created by investors and traded on various exchanges

Explanation:

Call options are contracts that give the buyer the right to buy the underlying assets of the option on a particular date at a set price by exercising the option. American Call options can be exercised anytime before the date listed in the contract as well.

Call options are created by people who already own stock in the company i.e investors in IBM and traded on various exchanges such as the Chicago Board Options Exchange. It acts as a supplementary way to make income from stock if the investors do not believe that the stock price will go up thus enabling them to make income from the contract price.

8 0
3 years ago
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