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Arada [10]
3 years ago
11

2. Explain the role of required & excess reserves in the banks approach to the making of loans to the consumer & busines

s.
Business
1 answer:
pav-90 [236]3 years ago
6 0

Answer:

Every time a dollar is deposited into a bank account, a bank's total reserves increases. The bank will keep some of it on hand as required reserves, but it will loan the excess reserves out. When that loan is made, it increases the money supply. This is how banks “create” money and increase the money supply.

Explanation:

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Q 8.18: The financial statements of the Harrison Company report net sales of $200,000 and accounts receivable of $10,000 and $5,
Tomtit [17]

Answer:

The answer is $13.5 days

Explanation:

The average collection period for accounts receivable in days in a year is the number of days from selling goods and services on credit and the day it takes to receive cash.

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