An FI is planning to issue $10,000,000 in commercial loans. It will finance all of it by

Fantastic news! We've Found the answer you've been seeking!

Question:

An FI is planning to issue $10,000,000 in commercial loans. It will finance all of it by issuing demand deposits.What is the minimum demand deposits it needs to attract in order to fund this loan if you assume there is a 6 percent average reserve requirement on demand deposits, all reserves are held in the form of cash, and $7,000,000 of funding is through equity?

$3,191,489

$2,808,510

$3,829,787

$3,574,468

$2,680,851

Posted Date: May 19, 2024 12:01 PM

See More Questions

Pick a method of accounting for bad debt. What do you like about it and why? give an example of a company where it makes sense to use that method? Why does it make sense? Also give an example of a...
One year ago, you purchased a stock at a price of $47.50 a share. Today you sold the stock and realized a total loss of 22.11 percent. Your capital gain was -12.70 a share. What was your dividend...
Marriott International, Inc., and Hilton Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the...
State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) stockholders' equity.
Central Pennsylvania Limestone Company produces thin limestone sheets used for cosmetic facing o n buildings. The following income statement represents the operating results for the year just ended....
6. Express the arc length of g(x) = over [0,1] as a definite integral. Then use the substitution u = J; to show that this arc length is equal to the arc length of y = x2 over [0,1] [but do not...
A 5 kilogram stone is dropped on a nail and drives the nail 0.025 meter into a piece of wood. If stone is moving at 10 meters per second when it hits the nail, the average force exerted on the nail...
Vortex shedding from wind velocity in slender lightweight structures, such as flagpoles, can cause oscillations (bending vibrations) to occur mimicking loading cycles and accelerating failure due to...
3. Using Thevenin's theorem, calculate the Thevenin equivalent source voltage, Vrh and source resistance, RT for the circuit. Specified values for analysis: R1 1200 Ohms R2 = 1000 Ohms R3 = 3300 Ohms...
(a) The Raman spectrum of the heterogeneous catalyst, titanium silicalite-1, displays two vibrational bands at 380 cm*1 and 800 cm-1. However, when reacted with an aqueous solution of hydrogen...
2. Suppose that we wanted to block access to the sea from inland town s on a river. We can do this by dropping mines in the river, but because the river spreads out in a wide delta with several...
Wages paid to machine operators on an assembly line are an example of which type of cost? Question 11 options: indirect material costs direct manufacturing labour costs indirect manufacturing...
Step 1: Select 3 different Purchasing/Procurement Specialist Job Position for multinational company specializing in Global Sourcing from online jobsites (Position need to be completely presented as...
You are planning to purchase your first home five years from today. The required down payment will be $50,000. You currently have $20,000. but you plan to contribute $500 each quarter to a special...
Your managing director has recently read an article which referred to Financial Reporting Standard 4 (FRS 4) - Capital instruments. He has requested a report from you about FRS 4....
Gas lawn mower: $70 \mathrm{~dB}, 100 \mathrm{~dB}, 120 \mathrm{~dB}$ Select the most representative decibel level for each sound.
Radio playing loud enough to sing along to at home: $20 \mathrm{~dB}, 50 \mathrm{~dB}, 70 \mathrm{~dB}$ Select the most representative decibel level for each sound.

An FI is planning to issue $10,000,000 in commercial loans. It will finance all of it by

Question:

Expert Answer:

Students also viewed these finance questions