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Trava [24]
1 year ago
15

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

Business
1 answer:
IgorC [24]1 year 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.

Read more on loans;

brainly.com/question/25599836

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Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Softa [21]

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0
3 years ago
At the time of Carol's 10 year high school reunion she was making $30,000 and the CPI was 90. Now that is is time for her to att
Klio2033 [76]

No, Carol's real income fell during that 10-year period.

[(30,000 ÷ 90 × 100) is > (65,000 ÷ 200 × 100)].

<h3><u>How Does the Consumer Price Index (CPI) Work?</u></h3>

The change in prices that American consumers pay each month is tracked by the Consumer Price Index (CPI). The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for a selection of goods and services that are indicative of overall consumer spending in the United States.

A common indicator of inflation and deflation is the CPI. The CPI report employs a different survey methodology, price sample, and index weights than the producer price index (PPI), which gauges changes in the prices paid by American producers of products and services.

<u>What Purposes Does the CPI Serve?</u>

Policymakers and the financial markets carefully monitor the CPI Index as an indicator of inflation. The cost of living adjustments for federal benefit payments is computed using a linked CPI metric.

<u>How is the CPI determined?</u>

When calculating the CPI, the Bureau of Labor Statistics takes a monthly sample of 94,000 prices and weights each index according to its share of recent consumer spending to determine the total change in prices. In the computation, the substitution impact is also taken into account, which occurs when customers divert their spending away from goods whose prices are rising relative to other goods.

Learn more about CPI with the help of the given link:

brainly.com/question/26682248

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8 0
1 year ago
If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has a(n):________
r-ruslan [8.4K]

If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has <u>recessionary.</u>

<u></u>

There have been 48 recessions in the United States dating back to the Articles of Confederation, and economists and historians determine that the 19 recessions before the Great Depression were bigger than since the end of World War II.

The health of the country's agricultural and industrial production, consumption, business investment, and banking sectors contributed to these declines.

The US recession is weighing more heavily on economies around the world, especially as national economies become more and more interdependent.

learn more about recessions here;  brainly.com/question/532515

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5 0
2 years ago
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Answer:

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The banking crisis of 2008 is quite interesting to analyze. The factors that led to this near banking collapse are intriguing to
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