Please given answer Accounting question Suppose a bank receives a $5,000 deposit, and thereserve ratio is 25%. The bank is required to keep inreserve an amount equal to?

Step 1: Define Reserve RatioBanks cannot lend all the deposits they receive, they need to keep a…

Answered: Suppose a bank receives a $5,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Solve this financial accounting problem
A bank pays 5% with daily compounding on its savings accounts. Should it advertisethe nominal or effective rate if it is seeking to attract new deposits?
Assume that all banks are loaned up and that the reserve requirement is 2%. If you deposit $10,000 in currency into your checking account, what is the change in the MONEY SUPPLY? (Round answers to the nearest whole number, and be careful about signs.)
A bank makes a loan of $1,000,000 at a rate of 6% p.a. It also requires a compensating balance of 5%. What is the effective cost to the borrower?
Assume an interest rate of 3 percent?
A person has some money in his/her checking account (say $100) and five transactions each of 10, 20 30, 40 and 50 dollars depositing money in the account, while five transitions each of 20, 30,40, 50 ,60 dollars are crediting out of his/her account. If the person gets 2% per day interest on his/her residual amount how you will synchronize the threads of deposit and withdrawal if all are happening at the same time. What will be the person’s account balance at the end of the day?
With an initial deposit of 200 dollars, the balance in a bank account after t years is f(t) = 200(1.05)t dollars. What are the units of the rate of change of f(t)? Find the average rate of change over [0,1]
A bank features a savings account that has an annual percentage rate of r=3.1r=3.1% with interest compounded quarterly. Breanna deposits $6,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+rn)ntS(t)=P(1+rn)nt, where SS is the future value, PP is the present value, rr is the annual percentage rate written as a decimal, nn is the number of times each year that the interest is compounded, and tt is the time in years. (A) What values should be used for PP, r, and nn? P=P= , r=r= , n=n= (B) How much money will Breanna have in the account in 88 years? Answer = $ . Round answer to the nearest penny.
What is would be the net annual cost of the following account? a. Montly fee,$3.75, processing fee,25 cents per check; checks written,an average of 14 month.( input the amount as a positive value)
Suppose a bank has the following Balance Sheet Assets Liabilities RSA = 120 RSL = 90 FRL = X FRA = 110 (Fixed rate liabilities can be found if needed by determining what number it must be to balance the balance sheet.) Suppose all the Assets and Liabilities were set last year when the interest rate was 10, if the interest rate has changed by 2% since that time what is the current cost from all of the bank's liabilities? Your Answer:
You are considering making a sizeable deposit into a bank, which pays 3.25% interest compounded semi-annually. What is the Equivalent Annual Rate (EAR) on deposits in this bank? 3.303% 3.276% 3.290% 3.248%
The first bank advertises a nominal rate of 7.1% compounded semiannually. A second bank advertises a nominal rate of 7% compounded daily. In which bank should you deposit your money? O The first bank. The second bank. O They are the same.

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Suppose a bank receives a $5,000 deposit, and the reserve ratio is 25%. The bank is required to keep in reserve an amount equal to ?