A cost that is incurred when an actual monetary payment is made is a(n) explicit cost.
What are examples of explicit cost?Explicit costs are those that involve an actual monetary payment. Examples of explicit costs include purchasing materials, paying wages and salaries, paying rent, and other costs associated with manufacturing a product or delivering a service.These costs are the direct costs of doing business and are recorded in the accounting system.Explicit costs are also known as cash costs or out-of-pocket costs, since they are paid out of the company's cash reserves.By contrast, implicit costs are not directly paid but still have an impact on the business.These include the opportunity cost of using resources for one purpose instead of another, as well as the cost of forgone profits due to making a decision that may not be the most profitable.To learn more about actual monetary payment refer to:
https://brainly.com/question/13853366
#SPJ4
a. less capital and higher productivity. b. more capital and lower productivity. c. more capital and higher productivity. d. less capital and lower productivity.
When a country saves a larger portion of its GDP, it will have more capital and higher productivity.
Gross domestic product (GDP) is a monetary indicator of the market worth of all finished products that nations generate and sell over a certain time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
While nominal GDP is better for comparing national economies on the global market, GDP per capita does not take into account differences in the cost of living and inflation rates of the various nations. As a result, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between countries.
The above question is incomplete, the complete question is-
When a country saves a larger portion of its GDP, it will have
a. more capital and higher productivity.
b. more capital and lower productivity.
c. less capital and higher productivity.
d. less capital and lower productivity.
Hence the correct option is C
To know more about GDP here-
https://brainly.com/question/30111703
#SPJ4
the fair market value for a property in georgia is $265,000. using the standard assessment rate for georgia with a property millage rate of 35 mills, what would be the annual property taxes?
the annual property taxes is $3,710. To calculate:$265,000 (MV) × 40% (assess rate) = $106,000 (assess value) 35 mills × 0.001 = 0.035 (millage rate)$106,000 × 0.035= $3,710
Tax compliance refers to both governmental actions and human behavior that assure taxpayers are paying the appropriate amount of tax at the appropriate time and receiving the appropriate tax allowances and tax reliefs. A tax is a mandatory financial charge or another type of levy imposed by an administrative body on a taxpayer (an individual or legal entity) in order to fund different public expenditures (regional, local, or federal)[2]. [3] Between 3000 and 2800 BC, the first known taxation was implemented in ancient Egypt. [4] Delinquent payments and tax avoidance or defiance are examples of breaking the law. Taxes can be paid up front or over time, with money or labor.
Learn more about tax:
https://brainly.com/question/16423331
#SPJ4
The cash flow identity reflects the fact that: Multiple select question. cash flow from the firm's assets equals the total of cash flow to creditors and cash flow to stockholders. a firm generates cash through its various activities. operating cash flow is the same as operating income. cash is either used to produce the product or service, pay creditors or pay out to the owners of the firm.
A firm generates cash via its various operations, which it either uses to pay creditors or distributes to its owners. Cash flow from the firm's assets matches the cash flow provided to suppliers of capital to the firm.
Describe cash flow.The net balance of money coming into and going out of a company at a particular period is referred to as cash flow. A firm constantly receives and expends cash. For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
The cash flow formula is what.Add your net income and non-cash expenses, then deduct your change in operating capital and capital expenditures to arrive at free cash flow. Free Cash Flow is calculated by adding Net Income to Non-Cash Expenses, Working Capital Change, and Capital Expenditure.
To know more about Cash Flow visit:
https://brainly.com/question/29768594
#SPJ4
A class and its members can be described graphically using a notation known as the ____ notation.
a. OON b. OOD
c. UML d. OOP
A class and its members can be described graphically using a notation known as the UML notation.
In the area of object-oriented software engineering, the Unified Modeling Language (UML) is a standardised general-purpose modelling language. Visual models of object-oriented software systems may be created using a set of graphic notation tools included in UML. UML incorporates concepts from data modelling, business modelling, object modelling, and component modelling and may be applied across a variety of implementation technologies and the software development life cycle.
Learn more about UML notation here:
https://brainly.com/question/28269854
#SPJ4
Re-do or Rework is an example of _____.
Select an answer:
• Internal Failure cost
• External Failure cost
• Appraisal cost
• Prevention cost
If throughput rate is less than Takt rate, we have _____.
Select an answer:
• waiting and delays
• no WIP
• on-time deliveries
• too many employees
Checking or Inspection is an example of _____.
Select an answer:
• Appraisal cost
• Internal Failure cost
• Prevention cost
• External Failure cost
Data collection planning in the Measure phase starts with _____.
Select an answer:
• measurement tools
• specific questions to measure Xs
• graphs and charts
• specific questions regarding Y
Re-do or Rework is an example of internal failure cost. Thus, option A is the correct answer.
What is an internal failure cost?Internal failure costs are the costs associated with defects discovered before the product or service is delivered to the customer.
Failure analysis activities, product rework costs, product scrapped (net of scrap sales), and throughput lost are examples of internal failure costs.
The following are the answers to the remaining questions:-
If throughput rate is less than Takt rate, we have waiting and delays.Checking or Inspection is an example of Prevention cost.Data collection planning in the Measure phase starts with specific questions regarding Y.Therefore, the correct answers are option A, A, C, and respectively.
To learn more about internal failure cost, click here:
https://brainly.com/question/14408648
#SPJ1
Spatial orientation is a cultural measurement of ____ during speaking
room awarenessspace needed for gestureswhere eyes lookdistance between people
Spatial orientation is a cultural measurement of space needed for gestures during speaking.
What is spatial orientation?Spatial orientation can be defined as the way of identifying an object and this is done by knowing the direction where an object is coming from or where an object is heading .
Example of spatial orientation is when a person is being asked to carryout spatial transformations and example of spatial transformation is rotation or rotating an object.
A person with spatial orientation cognitive ability will tend to identity the way objects are situated in the space . When it comes to spatial orientation the eye play an important role based on the fact that the eye help to provide the sensory input that will help to maintain accurate orientation of the space.
Its is important to note that spatial orientation is a cultural measurement of space needed for gestures when making a speech or when speaking.
Therefore we can conclude that correct option is B.
Learn more about Spatial orientation here:https://brainly.com/question/17373555
#SPJ1
Atty. Larry Gadon has barely passed the Bar Examination. This however did not deter him to venture into the private practice of law. To attract clients in his law office, he decided to purchase several law books so that he will have something to display in his library. He then purchased in an installment basis from Phoenix Publishing Company several law books including a complete set of Supreme Court Reports Annotated. As a result, Phoenix Publishing Company expressly reserve the ownership of the said books despite its actual delivery to Atty. Gadon. A day after the books were delivered, the building housing his office and library was gutted by fire, burning the books that were earlier delivered. On the due date, Phoenix Publishing Company demanded from Atty. Gadon the payment of his balance, however he refused to pay it since he then contended that he was not yet the owner of the books at the time it was delivered as the Publishing Company made reservation of ownership despite its delivery.
Rule on the contention of Atty. Larry Gadon.
Norms for the Sale of Goods Act, As a result of the aforementioned issue, the Sale of Goods Act and its regulations on the transfer of ownership following sales are under question.
What is the main objective of the Sale of Goods Act?The Sale of Goods Act of 1979 regulates the standard of particular goods that are bought and sold (c 54). One of the statutes that the Act consolidates is the Sale of Goods Act of 1893. Numerous minor legislative alterations and amendments have been made since 1979.
What laws are applicable to the sales of goods act?3(1) A product sale agreement is one in which the seller transfers ownership of the goods to the buyer in exchange for a monetary sum known as the price. (2) There can be a sale agreement between two co-owners. (3) A selling agreement may be unconditional or subject to certain conditions.
Learn more about sale agreement: https://brainly.com/question/28855912
#SPJ4
What is the purpose of NIST 800 30?
NIST 800-30 is a Risk Management Guide for Information Technology Systems. It is designed to help organizations identify, assess, and manage risks associated with the acquisition, development, operation, and maintenance of their IT systems.
What is Risk Management?Risk Management is the process of identifying, assessing, and controlling potential risks to an organization's operations, personnel, stakeholders, and customers. It involves a comprehensive analysis of potential risks and their potential impact on the organization. The primary goal of Risk Management is to minimize the potential for losses to an organization. This is accomplished by developing and implementing strategies to reduce or eliminate risks as well as creating plans to respond to potential risks when they occur. Risk Management also involves monitoring and assessing existing risks, as well as continuously improving existing strategies and plans. Overall, Risk Management helps organizations to avoid unexpected losses and to maintain their financial stability.
The guide provides a step-by-step process for systematically identifying, assessing, and managing risks. It also identifies specific risk management activities to be performed at each stage of the IT system life cycle.
To learn more about Risk Management
https://brainly.com/question/29903748
#SPJ4
an express agency agreement that is often used to give an agent the power to sign legal documents on behalf of the principal is known as a(n) .
An agent is given extensive authority to sign legal documents on behalf of the principal under a general power of attorney.
Both general and specific authority may be granted through a power of attorney. The principal appoints an attorney to carry out the essential actions on his behalf when he is unable to attend several negotiations. The principle in this instance grants the attorney specific authority to represent them only for the purposes specified, and that permission expires after those objectives have been achieved. Depending on the details, the transaction may involve one or many parties.
Learn more about power of attorney, here:
https://brainly.com/question/29509749
#SPJ4
Drew is single and files using the head of household filing status. His agi is $95,000. He has two qualifying children: sage, age 5, and peppa, age 17. What is the amount of drew's 2022 child tax credit?.
Answer:
3600
Explanation:
_____ teams make or do things like manufacture, assemble, sell, or provide service.
Work teams make or do things like manufacture, assemble, sell, or provide service.
At our company, we specialize in both manufacturing and assembling products to the highest quality standards. Our state-of-the-art manufacturing process is backed by a dedicated team of professionals who strive to ensure every product meets the strictest standards.
Our assembly team works in tandem with the manufacturing team to ensure each product is put together in the most efficient and effective manner. This combination of expertise ensures each product is completed with accuracy and speed. By utilizing both the manufacture and assembly processes, we are able to guarantee top-notch results every time.
To know more about assemble, click here.
https://brainly.com/question/29563444
#SPJ4
Proposed rules to implement a law are
a. not open to comment by anyone.
b. open to comment only by other members of the federal bureaucracy.
c. open to comment by anyone who wishes to weigh in.
d. open to comment only by members of Congress.
In the nature of law, the proposed rules to implement a law are open to comment by anyone who wishes to weigh in.
As we all know that the proposed rule that is also known as Notice of Proposed Rulemaking (NPRM) is defined as the official document that announces and explains the agency's plan to address a problem or accomplish a goal.
Here we know that all proposed rules must be published in the Federal Register to notify the public and to give them an opportunity to submit comments.
And the most common rulemaking process is informal rulemaking that one is solicits written public feedback on proposed rules during a comment period.
Hence the correct option is (c).
To know more about proposed rule here.
https://brainly.com/question/15170535
#SPJ4
Monarch company uses a weighted-average perpetual inventory system and has the following purchases and sales: january 1 20 units were purchased at $10 per unit. January 12 12 units were sold. January 20 18 units were purchased at $11 per unit. What is the value of cost of goods sold?.
Cost of goods sold = 12 units * $10 per unit = $120
Average cost = [(8 $10) + (18 $11)]/26 units = $10.69/unit
Ending inventory = 26 units * $10.69/unit = $277.94
the value of cost of goods sold is $278. So correct answer is $278.
What costs do you refer to?The cost of materials, labor, services, products, equipment, and other commodities used by a company or other accounting entity is defined in accounting as the dollar amount of purchases made for those things. It is the amount that is stated as the invoice price and is noted in the bookkeeping records as an expense or asset cost basis.
To know more about costs visit:
https://brainly.com/question/30045916
#SPJ4
How can I learn from past mistakes?
Make more errors. Reconsider your procedure. Marcus advises us to believe in the procedure. Employ Your Team. Make it known.
What does team building in management of businesses entail?An continuing process called team building aids in the development of a work group's sense of unity. The team members accept one another's variation and trust one another in addition to having similar expectations for completing work as a group.
Which element of teambuilding is more important?Effective communication is the most essential component of teamwork. It requires keeping everyone informed on a frequent basis and refraining from assuming that all people are aware of exactly the same information. But good listening skills are also necessary for productive teamwork.
To know more about team building visit :
https://brainly.com/question/30141656
#SPJ4
Which is an example of a high risk investment?
A prime example of a high risk investment is buying stocks of a startup company. It is a high risk investment because it is likely that the startup company may fail, resulting in a substantial loss of the original investment.
What is high risk investment?High risk investment is the practice of investing money in ventures or assets that have a greater risk of loss, but also the potential for higher returns. These investments can include stocks, options, commodities, derivatives, foreign currencies and investments in start-up businesses. High risk investments are generally not suitable for those who have limited capital or who are risk-averse. To make high risk investments, investors must be willing to accept the potential for losses as well as potential gains.
To learn more about high risk investment
https://brainly.com/question/30143693
#SPJ4
labor productivity will increase if the ________ increases and ________.
Answer:
Labor productivity will increase if the quantity of capital per hour worked increases and technology improves.
What three factors make up demand?
Unfortunately, a wide range of factors, such as product pricing, consumer income, and expectations, influence the demand for consumer goods.
Which four demand factors are there?Price, buyers' income level, consumer preferences, and competitive pressures are the four elements that influence demand. Price: The biggest factor influencing demand is price. This is so that demand doesn't drop too quickly as this factor goes up. Income of the purchaser: The likelihood of increased demand increases as this level rises.
What are the three major variables that affect a good pricing demand?Demand-Related Factors
Price of the Goods, Consumer Income, Cost of Related Goods, Price of the Product, etc.
Consumers' preferences and tastes....
The expectations of the consumer; the quantity of consumers in the market.
To know more about consumer income visit:
https://brainly.com/question/28289446
#SPJ4
A desire to purchase a good, capacity to purchase a good and readiness to purchase a good.
The volume that anything can accommodate. Typically, it refers to volume, which can be measured in millilitres (ml), litres (l), or pints or gallons (in Imperial). Example: This glass has a 300 ml capacity (but is actually holding only 160 ml) Moreover, capacity can be general: "He can work quite hard." Capacity refers to your ability to do an action or the volume that something can hold. If your bird cage is already full, you cannot cram another feathery companion within without risking the claustrophobia of the bird. Your capacity for physical improvement refers to how well you can perform physically. It either speeds up or slows down your performance. You have higher endurance and resiliency when your physical capability is strong.
Learn more about capacity here
https://brainly.com/question/14645317
#SPJ4
What are the five 5 elements needed to develop a positive safety culture?
Elements of a safety culture. Leadership Investment and Commitment. Employees with power. Techniques for Detecting & Controlling Hazards. Policies and procedures for safety. ongoing education, training, and communication. Continuously enhancing.
A general term for social behavior, institutions, and conventions found in human civilizations as well as the individuals who make up these groups and their knowledge, beliefs, and skills is "culture." It is common to claim that a certain region or location is where culture started or was inspired. The variety of cultures present in various societies serves as proof that enculturation and socialisation are the learning processes via which people pick up culture. A set of rules for conduct, appearance, language, and manner in a situation that acts as a guide for expectations within a social group is known as a cultural norm. It establishes socially acceptable behaviour under law. Accepting a social group with one culture can be risky, just as accepting one species might be risky.
Learn more about cultures from
brainly.com/question/25010777
#SPJ4
The methods used in the workplace to solve safety issues are part of the safety culture. Employees' attitudes, convictions, perspectives, and ideals toward safety are included in the term "safety culture."
What is workplace?Workplaces are locations where individuals execute tasks for the employers or for their own benefit. Anywhere from a small home office to major office building or factory could serve as such a place. The emergence of new communication technologies has led to the virtual office and remote work. Empowerment is a term used to describe a person's or a group's degree of autonomy and self-determination. It is the process of becoming more resilient and assured, especially when it comes to taking control of one's life and standing up for one's rights. People require both professional assistance and the process of self-empowerment in order to get over their feelings of powerlessness and helplessness, as well as to recognize and make use of their resources.
To learn about workplace, visit:
https://brainly.com/question/27757369
#SPJ4
What is market pricing method?
Market pricing is a technique used to determine prices based on the going cost for identical or comparable goods or services in the market. Businesses can do this to maintain their competitiveness while increasing their return on investment by initially setting higher prices before matching market prices.
Which four price techniques are used in marketing?Depending on the industry and business model at hand, models including value-based, competition-based, cost-plus and dynamic pricing are all often employed.What is the importance of market price?A point of convergence between supply and demand for a particular good is the market price. Calculating consumer surpluses, economic surpluses, etc. depends on this factor heavily. Due to shifts or shocks in the factors affecting supply and demand, the market price of a good or service is subject to revision.To know more about Market pricing, visit:
https://brainly.com/question/17218349
#SPJ4
What are the important characteristics of R?
R is a well-designed, easy-to-use programming language with input and output capabilities, conditionals, loops, and user-defined recursive functions.
Why is R useful in research?R is a statistical programming language that is open source and free. Data cleaning, statistical analysis, and visualization can all benefit from it. It enhances workflows that call for the usage of additional applications. On the R Project Website, you may read more about the language and discover documentation.
How does statistical analysis work?In order to find underlying patterns and trends, it is a science to gather, examine, and present vast amounts of data. Every day, statistics are used in study, business, and government to help make decisions more scientifically.
To know more about statistical analysis, visit:
brainly.com/question/14724376
#SPJ4
Which of the following is not a current liability? A. Accounts payable. B. A note payable due in 2 years. C. Current portion of long-term debt D. Sales tax payable.
The current portion of long-term debt is not current liability for the company.
What is a liability?What a person or business owes is known as a liability, and the amount owed is typically monetary. The transmission of economic rewards, such as money, products, or services, settles liabilities over time. Liabilities are items that are recorded on the right side of the balance sheet and consist of debts such as loans, accounts payable, mortgages, deferred revenue, bonds, warranties, and accrued expenses. You can compare assets and liabilities. Assets are items you own or are owed money for, whereas liabilities are things you owe money for or have borrowed money for. Due to the fact that they are used to fund operations and pay for significant expansions, liabilities are an essential component of a business. Additionally, they may improve the effectiveness of business to company transactions.
To learn more about liability, visit:
https://brainly.com/question/28391469
#SPJ4
Opportunity cost is the benefit of the next best alternative which is not selected because of the best alternative. Trade-off is a decision based on a situation where one has to let other alternatives go to select one alternative.
Opportunity cost is the expense of giving up the next best option as a result of making a choice.
What is opportunity cost next best alternative?Opportunity cost offers a framework for choosing the best course of action, especially when dealing with scarce resources like money and time. The worth of what you forgo while deciding among two or more possibilities is known as opportunity cost.
Scarcity has an impact on opportunity cost. People must make trade-offs while using their limited resources because of scarcity. Every time we do anything, we have to give up doing something else that would be more desired due to scarcity. Every action we take has an opportunity cost, which is measured by the most valuable option that is forgone.
To know more about Opportunity cost, visit:
https://brainly.com/question/481029
#SPJ4
which of the following types of training occurs while the employee is at his or her place of work?
The types of training that occurs while the employee is at his or her place of work is A) on-the-job training.
What is training while working?In a genuine or nearly real working environment, on-the-job training (OJT) is a practical method for gaining new competences and skills needed for a job. In a real-world, simulation, or instructional setting, it is frequently used to learn how to operate specific tools or equipment.
An essential area of human resource management is on-the-job training. It supports both the successful growth of the organization and the individual's professional development. One type of training offered at the workplace is on-the-job training. Internships, one of the most well-liked forms of on-the-job training, are an example of on-the-job training. This is because they offer individuals a chance to learn more about performing in a specific role.
Therefore, option A is correct.
Learn more about employee at:
https://brainly.com/question/1190099
#SPJ1
missing part:
A) on-the-job training
B) vestibule training
C) off-site training
D) incentive training
E) remote training
What is the 4 rule in investing?
The 4% rule is a commonly used rule of thumb for retirement spending. It's really straightforward: tally up all of your investments and remove 4% of the amount during your first year of retirement.
How Does the 4% Rule Work?
The 4% rule is simple to apply. You can withdraw up to 4% of the value of your portfolio in the first year after retirement. If you had $1 million in retirement savings, you might spend $40,000 in the first year of retirement if you follow the 4% rule.
Starting in year two of retirement, you adjust this amount for inflation. If inflation was 2%, you could withdraw $40,800 ($40,000 x 1.02). In the unlikely event that prices fell by 2%, you would withdraw less than the previous year—$39,200 in our example ($40,000 x 0.98). In year three, you would take the previous year's authorized withdrawal and adjust it for inflation.
Learn more about investing with the help of the given link:
brainly.com/question/17252319
#SPJ4
The annual sum that a retiree should remove from retirement funds is suggested by the 4% Rule in investing.
The goal of the regulation is to create a reliable and secure income stream that will cover a retiree's present and long-term financial requirements.
The rule was developed using historical data on stock and bond returns from 1926 to 1976, a 50-year span. With current interest rates, some experts say 3% is a safer withdrawal rate, while others say 5% would be acceptable.
An key factor in finding a sustainable rate is life expectancy. Bill Bengen, a financial advisor in Southern California who developed the idea of the 4% Rule in the middle of the 1990s, has subsequently claimed that many of its proponents have oversimplified it. In his opinion, 5% would be a more reasonable number and that the 4% guideline was based on a "worst-case" scenario.
Using historical data on stock and bond returns during the 50-year period from 1926 to 1976, the rule was developed, paying particular attention to the severe market downturns of the 1930s and the early 1970s.
To know more about investing click here,
https://brainly.com/question/27717275
#SPJ4
What should you do when preparing a presentation to the stakeholders?
Considerations to take into account when creating a presentation for stakeholders:
1. Start with your main points.
2. Tell stories to support your main claims.
Who are the stakeholders?Stakeholders are any people or organizations that are impacted by a project, initiative, policy, or organization, either favorably or unfavorably.
They could be internal (employees employed by your business) or external (people outside of your organization).
Typically, there are three types of stakeholder priorities.
The first and most important group is made up of employees, customers, and investors; without these, the business cannot function.
Measures to consider when putting together a presentation for stakeholders:
1. Start with your main points.
2. Tell stories to support your main claims.
3. Rehearse, rehearse, and more practice.
4. Encourage feedback and be ready to answer inquiries.
5. Evaluate how you performed.
Therefore, considerations to take into account when creating a presentation for stakeholders:
1. Start with your main points.
2. Tell stories to support your main claims.
Know more about stakeholders here:
brainly.com/question/4404879
#SPJ4
Is money supply a liquidity?
Liquidity changes are distinct from changes in the money supply. The interaction between the money supply and demand results in liquidity.
Supply: What Is It?A basic economic notion called supply refers to the total amount of a particular commodity or service that is made available to consumers. When shown as a graph, supply can refer to the quantity that is offered at a particular price or the quantity that is offered over a range of prices. The quantity supplied is the amount of a product that a store intends to sell at a specific price. Typically, when specifying quantity supplied, a time period is also provided. For instance: A week's supply of 300 oranges is provided when an orange costs 65 cents.
To know more about Supply visit:
brainly.com/question/29993574
#SPJ4
Airline companies engage in price discrimination by Multiple Choice O Charging unrestricted fares.O Giving a temporary price cut. O Charging higher prices to customers who must travel on short notice.O Engaging in price-fixing.
The correct option is C. Airline companies engage in price discrimination by Charging higher prices to customers who must travel on short notice.
Discrimination is the act of making unjustified distinctions between humans primarily based on the groups, training, or other classes to which they belong or is looked as if they would belong. human beings may be discriminated against on the idea of race, gender, age, faith, disability, or sexual orientation, in addition to other classes.
Discrimination particularly happens when individuals or companies are unfairly dealt with in a manner that's worse than different people are handled, on the premise of their real or perceived membership in positive groups or social classes. It includes limiting members of one group from possibilities or privileges which are to be had by members of another institution.
Discriminatory traditions, guidelines, ideas, practices, and laws exist in many countries and institutions in all elements of the world, such as territories where discrimination is normally looked down upon. In a few places, tries such as quotas were used to gain folks that are believed to be modern-day or past sufferers of discrimination. these tries have regularly been met with controversy, and features have sometimes been called reverse discrimination.
To learn more about Discrimination visit here:
brainly.com/question/29801080
#SPJ4
Being linked to a network of highly regarded contacts is a form of ________.
A) social credential
B) personal reinforcement
C) mobility
D) influence
Answer: c
Explanation:
mobility
__________________ law implies ownership over an idea or concept or image A. oligopoly B. patent C. monopoly D. monopolistic competition,
Suppose that a bank with no excess reserves receives a deposit into a checking account of $10,000 in currency. If the required reserve ratio is 0. 20, what is the maximum amount that the bank can lend out?.
Maximum amount a bank can lend = (10000 - 1000) * 10. Maximum amount a bank can lend = $90,000.
Excess reserves and required reserves are equal to total reserves. Banks earn relatively little interest on reserves held with the Federal Reserve, so it is speculated that banks strive to avoid holding excess reserves. When a bank's excess reserves reach zero, it lends. Excess Reserve = Total Reserve - Required Reserve
Suppose he has $20 million in a bank. With a reserve ratio of 10%, you should have at least $2 million on hand. However, if he has $3 million in reserves in the bank, of that he is $1 million in excess reserves.
Know more about Federal Reserve here:
https://brainly.com/question/23247429
#SPJ4
The bank's maximum loanable amount is $8000. This is calculated by multiplying the deposit of $10,000 by the required reserve ratio of 0.20, which equals $2000.
What is deposit?Depositing money is a simple process of transferring funds from one account to another. It is a secure and convenient way to save, invest, or make payments. To make a deposit, you must have a valid bank account or other means of payment, such as a debit or credit card. Once you have the necessary details, you can usually make your deposit online or in person. Online deposits are often instantaneous, while deposits made in person may take a few days to process. Making deposits is one of the most common and secure ways to store money and ensure it is safe and readily accessible.
The bank then subtracts the required reserves of $2000 from the deposit of $10,000, leaving the bank with $8000 in excess reserves.
To learn more about deposit
https://brainly.com/question/1438257
#SPJ4
