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3 years ago

Fractional reserve banking

Business

2 answers:

madam [21]3 years ago

7 0

Answer:

Explanation:

All of them would essentially lead to the bank to fail

lutik1710 [3]3 years ago

4 0

Answer:

I'm thinking D because several banks have gone bankrupt from people not paying

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Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected retur

Kazeer [188]

Answer: 28%

Explanation:

First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:

= Amount invested in risk free / Initial wealth

= -100/100

= -1

The weight of the portfolio will be calculated as:

= 1 - weight of risk free asset

= 1-(-1)

= 1 + 1

= 2

Therefore, the expected return on the resulting portfolio will be:

= 2 × 16 + [(-1) × 4]

= 32 - 4

= 28

5 0

3 years ago

. If instructors are going to work an average of hours per week for weeks for each -credit class of students,

marysya [2.9K]

Answer:

clear clarification please

6 0

3 years ago

Your uncle lends you $2,000 less $100 (interest at 5 percent), and you receive $1,900. Use the APR formula to find the true annu

vesna_86 [32]

Answer:

APR =5.263%

Explanation:

Computation of the true annual percentage rate

Using the APR formula to find the true annual percentage rate

APR=(2 × n × I) / [P × (N + 1)]

Hence;

APR= (2 × 1 × $100) / [$1,900 × (1 + 1)]

APR=$200/($1,900×2)

APR=$200/$3,800

APR= 0.05263 ×100

APR =5.263%

Therefore the true annual percentage rate using the APR formula will be 5.263%

7 0

3 years ago

Justin, age 66, paid $6,000 in qualified medical expenses in 2019 and took an $8,000 Archer MSA distribution during the year. Wh

Triss [41]

Answer:

No tax penalty will apply with respect to the excess distribution

Explanation:

Data provided in the question:

Age of Justin = 66 years

Qualified medical expenses in 2019 = $6,000

Archer MSA distribution taken during the year = $8,000

Now,

No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.

Here,

The age of Justin is 66 years i.e over 65 years.

hence,

No tax penalty will apply with respect to the excess distribution

4 0

3 years ago

At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment.

Volgvan

Answer:

Date Account title Debit Credit

Dec. 31 Investment in Tran Corp. $210,000

Investment Income $210,000

Working:

Herrera owns 280,000 out of 800,000 Tran Corp shares so they will recognize:

= 280,000/800,000 * 600,000

= $210,000 of Tran Corp. net income.

Date Account title Debit Credit

Dec. 31 Cash $140,000

Investment in Tran Corp. $140,000

Working

Cash received as dividend = 0.5 * 280,000 share

= $140,000

6 0

3 years ago