Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. Paolo, a client of First Main Street Bank, deposits $750,000 into his checking account at First Main Street Bank. a. Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).

Assets Liabilities

b. Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 20%.

(Dollars) (Dollars) (Dollars)
750,000

Answer and Explanation:

a. The completion of the following table to reflect any changes in First Main Street Bank's T-account is shown below:-

First Main Street Bank's Balance Sheet

Assets           Amount          Liabilities                         Amount

Reserves     $750,000      Checkable Deposits       $750,000

b. The completion of the following table to show the effect of a new deposit on excess and required reserves is shown below:-

Amount deposited      Change in excess  Change in required

                                            reserves                     reserves

$750,000                            $600,000                    $150,000

                                  ($750,000 - $150,000)     ($750,000 × 20%)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?