FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A bank has 100 million dollars in deposits and $15 million dollars in reserves. The required reserve ratio is 10%. There is a deposit outflow

A bank has 100 million dollars in deposits and $15 million dollars in reserves. The required reserve ratio is 10%. There is a deposit outflow of $9 million. What is the shortfall in reserves? Answer is -3.10 but i need further explanation how it is -3.10.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

0135811600, 978-0135811603

More Books

Students also viewed these Finance questions

Question

★★★★★
Eng Corporation had the following transactions: Instructions (a) In the above table, indicate by how much each transaction increases (+) or decreases () cash. If the transaction has no effect (NE) on...

Answered: 1 week ago

Question

★★★★★
3-9. What are the various forms of protections that lenders incorporate into their debt contracts

Answered: 1 week ago

Question

★★★★★
Describe Dorothea Dixs views on the causes of mental illness. Describe her views on the treatment of people with psychological disorders.

Answered: 1 week ago

Question

★★★★★
The Boston Culinary Institute is evaluating a classroom remodeling project The cost of the remodel will be $300,000 and will be depredated over five years using the straight-line metbod.The remodeled...

Answered: 1 week ago

Question

★★★★★
Read the tutorial https://www.cl.cam.ac.uk/teaching/1617/ConcDisSys/con-systems-prac.txt and submit the exercises: 1. Creating and joining threads 1.a. Write a short program that prints "Hello world"...

Answered: 1 week ago

Question

★★★★★
How is the product mix of a business NOT described? A) in terms of its consistency OB) in terms of its depth C) OD) in terms of its width in terms of its durability G

Answered: 1 week ago

Question

★★★★★
Golden Food Products produces special - formula pet food. The company carries no inventories. The master budget calls for theRequired: Prepare a profit variance analysis. Note: Enter your answers in...

Answered: 1 week ago

Question

★★★★★
Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it...

Answered: 1 week ago

Question

★★★★★
A surface mount PCB placement/soldering line is to be installed for $2,300,000. It will have a salvage value of $100,000 after 5 years. Determine the depreciation deduction and the resulting...

Answered: 1 week ago

Question

★★★★★
How can stakeholders track how the planning team has addressed key issues during the development of the master plan study? Group of answer choices Preparation of meeting minutes Develop and follow a...

Answered: 1 week ago

Question

★★★★★
You are interested in the effects of time spent viewing television and Body Mass Index on cardiovascular fitness (CVF) in children. You have a sample of 60 middle school students. Each student...

Answered: 1 week ago

Question

★★★★★
revise, redraft and proofread your work to maximise its credibility and accuracy.

Answered: 1 week ago

Question

★★★★★
draft a research report or dissertation;

Answered: 1 week ago

Question

★★★★★
clarify what is required by different audiences with whom you will communicate about your research;

Answered: 1 week ago

Previous Question Next Question