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2 years ago

What is the maximum amount of new loans the bank could lend with the given amounts of reserves?

Business

1 answer:

IgorC [24]2 years ago

6 0

The maximum amount of new loans to the bank could lend with the given amounts of reserve is; $400million.

<h3>Maximum amount of New loans</h3>

It follows from macroeconomics calculations that;

The maximum amount of new loans to the bank!= The current amount in reserves * The multiplier.

Given that the amount in reserves is $80 million.

$80 million * (1/20%)
$80 million * (5) = $400 million.

Ultimately, the maximum amount in new loans given the amount in reserves is; $400 million.

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Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS.

geniusboy [140]

Answer:

B. 60%

Explanation:

Labor force participation rate = Number in labor force/Adult population*100

=3/5*100 = 60%

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3 years ago

If managers are not owners of their company, then they are ________.

madam [21]

It is called an agent. They are the person who concurs and is approved to follow up for another, a central, to legitimately tie a person specifically business exchanges with outsiders as per an organization relationship.
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3 years ago

In 2008, the required reserve ratio for a bank's first $9.3 million in checking account deposits was zero. It was 3 percent o

Greeley [361]

Answer:

In most cases the deposits have a reserve ratio of 10% but in some cases the ratio is 0% and 3%, both these numbers are lower than 10. This means that in most cases the ratio is 10% and in some cases the ratio is less than 10 % so the real word deposit multiplier will be less than 10.

Explanation:

8 0

3 years ago

The following information is available for Birch Company at December 31: Cash in registers $ 2,910 Investment maturing in 9 year

yan [13]

Based on the various account balances that Birch Company has, they should report a total of $38,061 for Cash and Cash equivalents.

Cash and Cash Equivalents are the actual cash that a company holds as well as those that can readily be converted to cash.

They include:

Actual cash
Cash in bank
Cash in petty cash
U.S. Treasury bills
Money market funds

The total of cash and cash equivalent here are:

= Cash in registers + Cash in bank + Cash in petty cash + U.S. Treasury bills

= 2,910 + 23,631 + 320 + 11,200

= $38,061

In conclusion, Birch Company has Cash and Cash Equivalents of $38,061.

Find out more at brainly.com/question/9505730.

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2 years ago

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3 years ago