The table below, shows the balance sheet of the Bruins Bank.Liabilities/EquityAssetsReserves$40Demand DepositsLoans300Shareholders' equity$45050Securities100Fixed assets60Total500Total500By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below.a. If the target reserve ratio is 4.0% the Bruins Bank is (Click to select) by $b. If the target reserve ratio is 8.0% the Bruins Bank is (Click to select) by $c. If the target reserve ratio is 12.0% the Bruins Bank is (Click to select) by $d. If the target reserve ratio is 14.0% the Bruins Bank is (Click to select) by $

A bank is over-reserved if its overall reserve exceeds the required reserve. A bank is considered…

Answered: The table below, shows the balance…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Please answer along with the excel formulas - 1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? $205.83 $216.67 $228.07 $240.08 $252.08 2. Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? $1,781.53 $1,870.61 $1,964.14 $2,062.34 $2,165.46 3. Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later? $271.74 $286.05 $301.10 $316.16 $331.96
uestion The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow the company to borrow?
One of your customers is delinquent on hisaccounts payable balance. You’ve mutually agreed to a repayment schedule of $700per month. You will charge 1.3 percent per month interest on the overdue balance. Ifthe current balance is $21,500, how long will it take for the account to be paid off ?
Which of the following statements describes the payment amounts over the life of an ARM? A) Payments will remain constant for the life of the loan. B) Payments may go up or down in relation to the index rate. C) Payments may go up or down in relation to the margin rate. D) Payments may go up or down in relation to the equity in the property.
True or false 1. Interest Rate Parity allows a company to lock in profits by borrowing in the low interest rate currency and investing in the high interest rate currency? 2. When calculating Days Sales Oustanding, it is important to include all credit and cash sales in the equation.
Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place: Balance Sheet for Ecoville International Bank ASSETS LIABILITIES Cash $33,000 Demand Deposits $99,000 Loans 66,000 Now assume that the Fed lowers the reserve requirement to 8%. If the money multiplier is 5, how much money will ultimately be created by this event?
. When choosing between long and short term borrowing, which of the following is not usually a relevant consideration for a company? Any costs associated with refinancing, such as arrangement fees and penalties. Likely interest rate movements. Matching the term of the loan with the nature of the assets being financed. The principal agent problem.
On-Balance Sheet Items (Assets) (in millions) Cash $ 10,000 Government securities 30,000 Interbank deposits 5,000 Home loans to personal finance customers 20,000 Loans to corporate customers 75,000 Total Balance Sheet Assets $140,000 Off-Balance Sheet Items Standby letters of credit backing corporate borrowings $ 10,000 Long term unused loan commitments made to private corporations 20,000 Total Off-Balance Sheet Items $30,000 Bank Capital Common stock (par value) $ 1,000 Surplus 1,500 Retained earnings 1,500 Subordinated debentures 2,000 Minority interest in subsidiaries 1,000 Allowance for loan and lease losses (reserves) 1,000 Non cumulative perpetual preferred stock 1,000 Intermediate term preferred stock 4,000 Equity commitment notes 2,000 Basel…
The following is an excerpt from a business plan: "To open our new upscale toy store, We R Toys, we require a total of $225,000. The owners will be providing $100,000 of this amount from their own savings, and their friends and families have promised an additional $25,000. Therefore, We R Toys requires a bank loan of $100,000." In which section of We R Toys' business plan would this information be found? O Executive Summary O Sales Strategies Market Analysis O Financial Projections O Funding Requirements
Solve this MCQ : A. For example you need money from outside and that's why you are looking for the best options of external fund which need to be evaluated in terms of: The Length of the Time The Cost The Amount of Company Control Lost All of The Above None of the Above. B. Trust receipts are unique type of which loan (s) an entrepreneur can get through banks. ‌Straight Commercial Loan ‌Inventory Loan ‌Account Receivable Loan ‌All of The Above ‌None of The Above. C. In case of constrained growth business farms actually perform better if they remain at a smaller growth. ‌True ‌False D. Entrepreneurs can get secondary sources of information through ‌ Trade Magazines ‌ Newspaper Articles ‌ Government Agencies ‌All of The Above ‌None of The Above E. The changes between Apple 7+ and Apple 12 Pro is called ‌ Breakthrough Innovation ‌ Technological Innovation ‌ Ordinary Innovation ‌ Both Option 2 And 3 ‌ None of The Above F. Transfer of interest is not flexible…
You work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales…
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