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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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1 year ago

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2 years ago

A machine cell uses 195 pounds of a certain material each day. Material is transported in vats that hold 25 pounds each. Cycle t

Anna [14]

Answer:

Number of vats used is 3

Explanation:

Number of pounds used per hour, D = 195 ÷ 8

= 24.375 pounds per hour

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Now,

Let, n be total number of vats

Thus,

n = $\frac{DT(1+e)}{C}$

on substituting the respective values, we get

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2 years ago

A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and

marysya [2.9K]

Answer: Please see explanation for answer

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3 years ago

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