13. The following is the balance sheet of a banking system.
Assets Liabilities Reserves $1,000 Deposits $4,000 Loans $3,000
Assume the required reserve ratio is 20% and there is no cash leakage.
(a) Calculate the amount of excess reserves held by banks.
(b) Calculate the increase in the amount of loans after lending out the excess reserves.(3 marks)
Answers
The excess reserves held by the banks are $200, and the increase in the amount of loans after lending out the excess reserves is $1,000.
(a) The required reserve ratio is 20%, which means that banks must hold 20% of deposits as reserves. In this case, total deposits are $4,000, so banks must hold $800 (20% of $4,000) in reserves. However, they are holding $1,000 in reserves, which means they have excess reserves of $200.
(b) Banks can lend out their excess reserves, which will increase the amount of loans they hold. The maximum increase in loans is determined by the money multiplier, which is the inverse of the reserve ratio. In this case, the reserve ratio is 20%, so the money multiplier is 1/0.2 = 5.
The amount of loans that can be created by the excess reserves is:
Excess reserves x money multiplier = $200 x 5 = $1,000
Therefore, the increase in the amount of loans after lending out the excess reserves is $1,000.
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Related Questions
How can you review a Transaction Report for any account when you are viewing the Balance Sheet?
Select one:
a. Click the balance in the account line of the Balance Sheet report to view the Transaction
Report.
b. Click the Report icon at the top of the Balance Sheet screen, then choose Transaction Report.
c. Click Transaction in the account line of the Balance Sheet report to view the Transaction
Report.
d. None of these options.
Answers
The correct option is "Click the balance in the account line of the Balance Sheet report to view the Transaction Report" because when reviewing the Balance Sheet Report, you can easily access the Transaction Report for any account by clicking on the balance in the account line.
When reviewing a Transaction Report for any account while viewing the Balance Sheet, you can simply click on the balance in the account line of the Balance Sheet report. This action will allow you to access the Transaction Report, providing a detailed breakdown of the transactions associated with that specific account.
The Transaction Report is a valuable tool for analyzing the activity within an account, as it provides a chronological list of all the transactions that have occurred. By clicking on the balance in the account line of the Balance Sheet, you can quickly navigate to the Transaction Report and gain insights into the individual transactions that contributed to the account balance.
This option offers a seamless and intuitive way to review the Transaction Report without having to navigate through different menus or screens. It ensures that you have all the necessary information at your fingertips while examining the Balance Sheet.
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Sarah needs to transfer money from one of her bank accounts to another. She would call someone from the Banking Services pathway of the Finance career cluster to help her do this.
A. True
B. False
Answers
The Answer is: A. True
She would need to call someone from the Banking Services pathway of the Finance career cluster to help her.
Monetary policy is an art and craft on which economists can provide useful guidance. True or false
Answers
Monetary policy is an art and craft on which economists can provide useful guidance. True, economists can provide useful guidance on monetary policy.
Monetary policy is indeed considered an art and craft on which economists can provide useful guidance. Monetary policy refers to the actions and strategies implemented by a central bank or monetary authority to control and regulate the money supply and interest rates in an economy. The goal of monetary policy is typically to achieve price stability, promote economic growth, and maintain financial stability.
Economists play a crucial role in formulating and advising on monetary policy decisions. Through their expertise, analysis, and understanding of economic principles, economists can provide valuable insights and recommendations on the appropriate course of action.
They utilize economic models, data analysis, and historical trends to assess the current economic conditions, identify potential risks, and propose suitable monetary policy measures.
While monetary policy decisions are complex and often require judgment calls, economists' guidance is instrumental in ensuring effective policy implementation and achieving desired economic outcomes. Their expertise helps in navigating the intricacies of the financial system, understanding the interplay of various macroeconomic factors, and making informed decisions that impact interest rates, inflation, and overall economic stability.
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What is profit in an economic system?
A. Profit is the investment a producer makes in the economy to achieve financial gain.
B. Profit is the net change in the value of the economy due to an exchange.
C. Profit is the financial gain resulting from an exchange.
D. Profit is the investment a consumer makes in the economy to achieve financial gain.
Answers
Answer:
I think D is correct answer
The profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
The information related to the profit is as follows:
It is the surplus that comes after deducting the cost from the revenue made. It is the investment that should be made by the consumer for attaining financial gain.Therefore all the other options are incorrect.
Thus we can conclude that profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
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Type the correct answer in the box. Which Financial Assets can be traded on the stock market?
_____ are tradable financial assets that are sold and bought on the stock market.
Answers
Your answer is Treasury Bill!
Hopefully, this helps! :D
Please give branliest!
Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During December 2009, the following events occurred in the Processing Department:Units started 16,000 unitsUnits completed and transferred to Finishing Department 15,000 units
Answers
The beginning inventory for the Processing Department in December 2009 is 1,000 units.
In order to calculate the number of units in beginning inventory of the Processing Department for December 2009, we can use the following formula:
Beginning Inventory = Units Started – Units Completed and Transferred
Therefore, the beginning inventory for the Processing Department in December 2009 is 1,000 units.
Beginning inventory refers to the amount of inventory a business has at the start of a particular period, such as a fiscal year, quarter, or month. It is the total value of all the goods that a business has on hand and available for sale at the beginning of the accounting period. Beginning inventory is important in accounting because it is used to calculate the cost of goods sold (COGS) and to determine the value of inventory at the end of the period. By subtracting the cost of goods sold from the beginning inventory, a business can calculate its ending inventory for the period.
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An account in which a customer deposits money for a set period of time in
return for a fixed rate is called a:
O A. money market account.
B. checking account.
C. certificate of deposit.
O D. debit card.
Answers
An account in which a customer deposits money for a set period of time in return for a fixed rate is called a: C. certificate of deposit.
What is a certificate of deposit (CD)?A certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account that is typically issued by a financial institution (bank) to its customers, wherein an amount of money (lump-sum) are left with the bank for a specific period of time, in exchange for a fixed interest rate premium.
This ultimately implies that, a certificate of deposit (CD) pays a higher interest rate to its holder (customer) than other regular savings account and money market account because banks usually invest this money (lump-sum) in a business, so as to make profit.
Additionally, a bank's certificate of deposit (CD) is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, which typically makes it somewhat safer than other investment options.
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Which type of business does not hold owners accountable for the debts of
the business?
OA. Sole proprietorship
OB. LLC
OC. Partnership
A
OD. Private company
Answers
Answer:
Limited Liability Company (LLC)
Explanation:
A limited Liability Company (LLC) is a business structure in the United States that protects its owners from the personal responsibility for its repayment of debts and liabilities. It is a hybrid entity that has the characteristics of a corporation, partnership and sole proprietorship. The regulation of LLC's varies from one state to another. An entity or individual can be a member of an LLC with notable exceptions from banks and insurance companies. The primary reason for registering a business under LLC is to limit the personal liability of the owners as well as the partners. LLC may have some attractive features but they also possess some great disadvantages as well. Depending upon the state law, an LLC may be dissolved upon the death or bankruptcy of a member.
A facility in which there is a greater than normal potential or the loss of life or property from a fire is known as:
Answers
The facility you are referring to, which has a greater than normal potential for the loss of life or property from a fire, is known as a high-risk facility.
High-risk facilities are typically buildings or structures that contain hazardous materials, have limited fire safety measures, or have a large number of occupants.
These facilities require special attention and stricter fire safety measures to mitigate the potential risks. Some examples of high-risk facilities include chemical plants, oil refineries, hospitals, shopping malls, and high-rise buildings.
To minimize the risk of fire incidents in high-risk facilities, it is crucial to implement effective fire prevention measures such as installing fire alarms, sprinkler systems, fire-resistant materials, and conducting regular fire drills.
Additionally, having proper evacuation plans and training employees on fire safety protocols is essential. Fire safety codes and regulations vary by jurisdiction, so it is important for facility managers to stay updated and comply with local fire safety standards.
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Q 1.21: Flex-Mat started the year with total assets of $160,000 and total liabilities of $90,000. During the year, the business recorded $210,000 in revenues, $120,000 in expenses, and dividends of $35,000. Stockholders' equity at the end of the year was
Answers
Answer:
$125,000
Explanation:
total assets $160,000 = total liabilities $90,000 + total equity $70,000
income statement:
revenues $210,000
expenses $120,000
net income $90,000
- dividends $35,000
retained earnings $55,000
stockholders' equity at end of the year = $70,000 + $55,000 = $125,000
Explain an Argument In the section "Consequences of Ending Rent Control," you read that most economists argue that the benefits of ending rent control exceed the costs. Do you agree? Why or why not?
Answers
Answer:
Disagree Option
Explanation:
Setting prices ceilings on rent can cause the balance in supply and demand to fall short of each other. For example, let's say the equilibrium for supply and demand was 5 apartments for $100 a month and that the supply at $100 was 5 apartments. If you created a price ceiling at $90, this would cause a greater demand but less of a supply generating an apartment shortage.
A(0,8) and b(0,22) are two points in xy coordinate. connect a and b with a straight line, how long is the line ab
Answers
The line AB connecting points A(0, 8) and B(0, 22) is 14 units.
To find the length of the line segment AB connecting points A(0, 8) and B(0, 22) in the XY coordinate plane, you can use the distance formula:
Plugging in the coordinates of A and B:
Distance = √((0 - 0)^2 + (22 - 8)^2)
Distance = √((0)^2 + (14)^2)
Distance = √(196)
Distance = 14
So, the length of the line AB connecting points A(0, 8) and B(0, 22) is 14 units.
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The sales tax rate in a city is 8.9%. Find the tax charged on a purchase of $209, and the total cost. How much taxis charged on a purchase of $209? (Simplify your answer Type an integer or a decimal Round to the nearest cent if needed.) What is the total price? (Simplify your answer Type an integer or a decimal Round to the nearest cent if needed.)
Answers
The tax charged on a purchase of $209 at a sales tax rate of 8.9% is $18.61. The total cost, including the tax, is $227.61.
To calculate the tax charged, multiply the purchase amount by the sales tax rate: $209 * 8.9% = $18.61.
To find the total cost, add the purchase amount and the tax charged: $209 + $18.61 = $227.61.
The tax charged on a purchase of $209 at a sales tax rate of 8.9% is $18.61. This means that $18.61 is added to the original price of $209 as the tax amount. The total cost, including the tax, is $227.61.
To calculate the tax amount, we multiply the purchase amount ($209) by the sales tax rate (8.9% or 0.089): $209 * 0.089 = $18.61.
To find the total cost, we add the original purchase amount and the tax charged: $209 + $18.61 = $227.61. This final amount reflects the full cost of the purchase, including both the original price and the tax.
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
What is Financing Decision??
Answers
Financial decisions are decisions made by management about a company's finances. These decisions might pertain to asset purchase, finance and fund raising, day-to-day capital and spending management, and so on. Financial decisions therefore affect both the assets and liabilities of a company.
Evaluating manager's performance on financial measures only has limitations. therefore, companies should consider ________
measures to help evaluate manager performance.
what is the asnwer
Answers
A company should consider the non-financial measures to evaluate the performance of the manager instead of financial measures.
What are financial and non-financial measures of evaluating the performance of the managers?Financial measures are those which measures the performance in terms of money that includes Gross and net profit margin, working capital etc.
Non-financial measures are those which measures the performance other than money that include market share, customer satisfaction etc.
Non-financial measures are more effective than the financial measures.
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Our daily personal financial transactions has been made easy with the use of A. B. money. cheque. C. pay slips. D. documents.
Answers
Answer:
Money
Explanation:
Money is used as mode of exchange
What is a typical first transaction for a business?
a) Purchase of a building
b) Withdraw cash from company's bank account
c) Invests cash into business
d) Purchase Land
Answers
PLEASE HELP I'LL GIVE THE BRAINLIEST
Select the correct answer. Which of the following correctly matches the banking term with the appropriate definition?
A. A deposit is the total amount of money you have in the bank.
B. A withdrawal is an amount of money you take out of the bank.
C. Your balance is the money you put into the bank.
D. All of the above
Answers
Answer:
its answer is B a withdrawal is an amount of money you take out of the bank
How much money can a bank loan out, and make money on, of the banks’ newly received deposits?
Group of answer choices
A. The bank can loan out only up to the amount of its excess reserves.
B. The bank can loan out what is equal to the full amount of the new deposits.
C. The bank can loan out up to the amount of their checkable deposits.
Answers
The bank can loan out only up to the amount of its excess reserves is what bank loan out, and make money on, of the banks’ newly received deposits therefore the correct option is A.
Generally, the bank can loan out up to the amount of its redundant reserves, which are reserves that are held beyond the minimum needed by controllers. For illustration, if a bank receives a deposit of$10,000, it can advance out up to the amount of its excess reserves, which may be lower than the full amount of the new deposits.
Alternately, the bank can advance out up to the amount of its confirmable deposits. This is plutocrat deposited into checking accounts that can be withdrawn at any time and transferred to another account. Banks may also have other internal programs that mandate how important of the new deposits can be lent out,
Hence the correct option is A.
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What is the marginal revenue and marginal cost for this diagram?
What type of market is this? Explain your answer
Answers
Marginal revenue :
2060120200300420560Marginal cost :
108210192640It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.
Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.
Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.
Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.
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what are 2 things that could happen to disrupt customer loyalty life cycle???
Answers
Answer: salespeople and customers are essential for the success of business-to-business relationships, and research has shown that a change of the salesperson can severely harm financial performance.
Explanation: However, such interpersonal relationship disruptions may also have positive effects by encouraging vitalizing re explorations of the relationship.
Three roommates will share the cost of an apartment. Monthly rent is $1,050. Average monthly utilities are estimated to be $150, including electricity, water, and trash pickup. Groceries are estimated to cost $525 per month. Internet service costs $120 per month, including phone and cable TV. Roommate #2 has a pet (deposit of $100). The security deposit is $525, and cleaning fees are $90. The estimated monthly cost of household supplies is $90.
What is the total monthly cost of the apartment?
Answers
Answer: Based on the various costs incurred by the three roommates, the monthly cost of the apartment is $1,410.What is the most cost of the apartment?The monthly cost of the apartment are all costs that relate to maintaining it and providing services to it.This can be found as:= Monthly rent + Monthly utilities + Internet service + cleaning fees = 1,050 + 150 + 120 + 90= $1,410
Explanation:
Which of the following industries is the best example of monopolistic competition?
a. Wheat
b. Restaurant
c. Automobile
d. Water service
Answers
The best example of monopolistic competition among the given industries is option b: Restaurant.
Monopolistic competition is a market structure where many firms offer products that are similar but not perfect substitutes, and each firm has some degree of market power due to differentiated products and brand recognition.
In the restaurant industry, numerous establishments offer a variety of cuisines and dining experiences. Each restaurant tries to differentiate itself from its competitors through factors such as menu offerings, atmosphere, service, and location. As a result, consumers have a range of choices, and each restaurant competes to attract customers, making this industry a strong example of monopolistic competition.Other options do not fit the criteria for monopolistic competition as well:
a. Wheat is an example of perfect competition, where the product is homogeneous, and no single producer has control over the market price.
c. Automobile is closer to an oligopoly, where a few dominant firms control a significant share of the market, and the entry barrier is high due to factors such as high capital investments and brand loyalty.
d. Water service is often a natural monopoly or a government-regulated industry, where a single provider or a few providers supply the service due to the high costs associated with infrastructure and delivery systems.
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In negative self talk, filtering is when a person _______. a. Focuses only on their problems, ignoring their successes b. Blames themselves for every problem, whether it was their fault or not c. Believes that every situation will end badly d. See themselves as a failure for not living up to impossible standards
Answers
Answer:
In negative self talk, filtering is when a person Focuses only on their problems, ignoring their successes
Explanation:
In negative self talk, filtering is when a person is being negative filtering positive stuff and turning it to something negative instead.
For example if someone passes a test but instead of being proud they feel as if they could have tried harder or gotten a higher grade, that person is filtering their success into negative things.
Hope this helps, Have a great day! :D
In negative self-talk, filtering is when a person focuses only on their problems, ignoring their successes. Thus, option A is the correct option.
What is negative self-talk?When your inner voice is too critical and negative, it is said to be engaging in negative self-talk. It is gloomy and emphasizes the negative. Your self-esteem is damaged, and you are prevented from realizing your potential. It might give you the impression that you will fail even before you begin. Repetitive negative self-talk frequently doesn't correspond to reality.
Rumination, which is repeated with intrusive unpleasant thoughts, might result from it. You will experience negative thoughts about yourself most of the time. This might get you down, and it can be difficult to get back up once you're down. People with anxiety or depression frequently exhibit negative self-talk. It might be overwhelming and impossible to escape from the incessant negative talk.
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List the five most common functions of business reports for an
organisation that manufactures electric cars for 1, 2 or 4
passengers. Name the users and the stakeholders involved in each
function.
Answers
The five most common functions of business reports for an organization that manufactures electric cars for 1, 2, or 4 passengers, along with the users and stakeholders involved.
Are as follows: Sales and Marketing Analysis:
Users: Sales and marketing teams, executives.
Stakeholders: Customers, dealerships, investors, shareholders.
Production and Inventory Management:
Users: Operations managers, production teams.
Stakeholders: Suppliers, logistics partners, investors.
Financial Performance Evaluation:
Users: Finance department, executives.
Stakeholders: Investors, shareholders, lenders, regulatory authorities.
Quality Control and Product Development:
Users: Quality control teams, research and development teams.
Stakeholders: Customers, regulatory authorities, investors.
Sustainability and Environmental Impact Assessment:
Users: Environmental compliance teams, sustainability managers.
Stakeholders: Regulatory authorities, customers, environmental organizations, investors. These functions and their corresponding reports serve different purposes and cater to various users and stakeholders within and outside the organization. By analyzing these reports, decision-makers can make informed choices, assess performance, ensure quality, drive innovation, and address sustainability concerns in the manufacturing and marketing of electric cars.
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yuhhhhhhh yu alr know the vibesss
im now a expert yhhhhhhhhhhhhhhhhhhhhh
Answers
Answer:
............................................ NICE
Answer:
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My friend failed 3 quarters. She mainly had 50's. In quarter 4, she has all A's. Will she be able to go to the next grade?
Answers
when an issuer has equipment trust certificates outstanding, title to the assets backing the certificates are held in trust. the equipment is held in trust. the assets can be repossessed and sold by the trustee. the certificates are unsecured because they represent the debt owed on the assets. a) ii and iii b) i and iii c) i and iv d) ii and iv
Answers
When an issuer has equipment trust certificates outstanding, the assets backing the certificates are held in trust and the equipment is held in trust. So, option D) ii and iv is correct
The assets can be repossessed and sold by the trustee if the issuer fails to meet its obligations. This means that the issuer does not have direct ownership of the assets. This provides a form of security for the certificate holders, as the assets can be used to repay the debt owed on the certificates.and the issuer cannot sell or dispose of the assets without the approval of the trustee.
However, it is important to note that the certificates themselves are unsecured. This means that they do not have any direct claim on the assets. Instead, they represent the debt owed by the issuer on the assets. In the event of default, the certificate holders would have a claim on the proceeds from the sale of the assets, but they do not have direct ownership or control over the assets themselves.
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The title to the assets backing the certificates is held in trust, and the assets can be repossessed and sold by the trustee. Thus, correct answer is option a) ii and iii.
When an issuer has equipment trust certificates outstanding, the title to the assets backing the certificates is held in trust. This means that the issuer doesn't have direct ownership of the assets. Instead, they are held by a trustee.
The purpose of holding the assets in trust is to provide security for the certificates. If the issuer defaults on their debt obligations, the trustee has the authority to repossess and sell the assets to recover the debt owed on the certificates.
Now let's analyze the options:
a) Option ii and iii: This option states that the title to the assets backing the certificates is held in trust (ii), and that the assets can be repossessed and sold by the trustee (iii). These statements accurately describe the situation when an issuer has equipment trust certificates outstanding.
b) Option i and iii: This option states that the issuer has direct ownership of the assets backing the certificates (i), which is incorrect. As mentioned earlier, the assets are held in trust, not owned by the issuer. Therefore, this option is not correct.
c) Option i and iv: This option states that the issuer has direct ownership of the assets backing the certificates (i) and that the certificates are unsecured because they represent the debt owed on the assets (iv). Both of these statements are incorrect. The assets are held in trust, not owned by the issuer, and the certificates are considered secured debt because they are backed by the assets. Therefore, this option is not correct.
d) Option ii and iv: This option states that the title to the assets backing the certificates is held in trust (ii) and that the certificates are unsecured because they represent the debt owed on the assets (iv). The first statement is correct, as mentioned earlier. However, the second statement is incorrect. The certificates are actually considered secured debt because they are backed by the assets. Therefore, this option is not correct.
In conclusion, the correct answer is option a) ii and iii. The title to the assets backing the certificates is held in trust, and the assets can be repossessed and sold by the trustee.
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Which design principle is especially important when you are creating navigational aids for your document?.
Answers
The design principle that is important when one is creating navigational aids for your document is repetition.
What is a design principle?It should be noted that the design principle simply means the principles that are used to create visually appealing designs.
In this case, the design principle that is important when one is creating navigational aids for your document is repetition.
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Answer:
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