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densk [106]
2 years ago
11

First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If

FNB receives an additional deposit of $100, Group of answer choices then it has required reserves of $210 and holds excess reserves of $10. then it has required reserves of $10 and holds excess reserves of $20. then it has required reserves of $110 and holds excess reserves of $190. then it has required reserves of $110 and holds excess reserves of $0.
Business
1 answer:
Vadim26 [7]2 years ago
5 0

Answer:

The correct answer is then it has required reserves of $110 and holds excess reserves of $190.

Explanation:

According to the scenario, computation of the given data are as follows:

Total deposit = $1,000 + $100 = $1,100

So, we can calculate the total reserve required by using following formula:

Total reserve required = 10% × Total deposit

= 10% × $1,100 = $110

And Previous excess = $100

Current access = $90

So, Excess reserve =  Previous excess +  Current access

= $100 + $90

= $190

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ella [17]

Answer:

C. It replaces human altogether

Explanation:

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2 years ago
Distinguish between medium and higher level education with<br>illustration.​
Leviafan [203]

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8 0
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There are zero coupon bonds outstanding that have a YTM of 6.09 percent and mature in 17 years. The bonds have a par value of $1
dlinn [17]

Answer:

$3,606.49

Explanation:

the price of a zero coupon bond = maturity value / (1 + i)ⁿ

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  • i = 6.09% / 2 = 3.045% semiannual interest rate
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Q#2 (Chapter 9). A diversified company has decided to use its overall firm WACC as a performance benchmark for rating its divisi
labwork [276]

Answer:

Pros: Use of singe hurdle rate saves time in the evaluation of projects which results in prompt decision making.

Cons: Company may reject good projects and accept bad ones due to the assumptions underlying WACC use in capital budgeting.

Explanation:

Pros of using WACC: The use of WACC implies that the company  uses a single hurdle rate  for all projects, which simplifies the decision making and saves  time when evaluating projects

Cons of using WACC: Use of WACC assumes that  there is no change in capital structure i.e all projects are financed in exactly the same way and all projects have the same risk . These assumptions  may lead to the company rejecting good projects  and accepting bad ones. For example the company may accept a high risk project with a return of 14% when the minimum return that should be accepted according to the high risk divisional WACC is 16%. Likewise, the company may reject a low risk project with a return of 11%, when it is in fact a good project whose minimum return should be 8% as per the low risk divisional WACC.

7 0
2 years ago
Early in 20x3, Shifter, Inc. wrote put options for 1,000 shares of its common stock. Purchasers of the options can sell Shifter
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Answer: shifter discovers a loss of $3000

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Because Shifter paid $5,000 more for the treasury stock than its fair value: 1,000 shares × ($20 − $15). The $2,000 fee (1,000 × $2) offsets that loss yielding a net loss of $3,000

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