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2 years ago

Suppose the reserve requirement for the United States is 20%.

Business

1 answer:

Ronch [10]2 years ago

6 0

When the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

<h3>What is Federal Reserve?</h3>

It should be noted that the Federal Reserve controls the monetary aspect in an economy.

In this case, when the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

Also, when the Fed wants to decrease the money supply, the thing that should be done will be to sell bonds.

Learn more about Federal Reserve on:

brainly.com/question/25817380

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Downing Company issues $4,000,000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020 (ten periods). The bonds pay intere

zlopas [31]

Answer:

$4,525,123.84

Explanation:

The computation of the proceeds from the issuance of the bond is shown below:

Given that

Face Value of Bonds = $4,000,000

Annual Coupon Rate = 8%

So, Semiannual Coupon Rate = 4%

So, Semiannual Coupon = 4% × $4,000,000

= $160,000

Time to Maturity = 5 years

So, Semiannual Period = 10

And,

Annual Interest Rate = 5%

So, Semiannual Interest Rate = 2.5%

Now the proceeds from the issuance of the bond is

= $160,0000 × PVIFA(2.5%, 10) + $4,000,000 × PVIF(2.5%, 10)

= $160,000 × 8.752064 + $4,000,000 × 0.78120

= $1,400,330.23 + $3,124,793.61

= $4,525,123.84

4 0

3 years ago

Quinton had a gross income of $2741.67 during each day period in 2009. If he got paid monthly, how much of his pay was deducted

Ket [755]

2741.67 * 12 = 32900.04 <span>FICA rate is 7.65% </span><span>32900.04 * .0765 = 2516.85 </span>

3 0

3 years ago

Read 2 more answers

8. Point Co. purchased 90% of Sharpe Corp.'s voting stock on January 1, 20X2 for $5,580,000. Prior to the acquisition, Point hel

aev [14]

Answer:

Option (b) is correct.

Explanation:

Given that,

Cost of stock purchased = $5,580,000

Book value of 10% investment in Sharpe = $340,000

Fair value of 10% investment in Sharpe = $620,000

Therefore, the fair value of 10% investment in Sharpe company is greater than the book value. So, there is a gain of:

= Fair value of 10% investment - Book value of 10% investment

= $620,000 - $340,000

= $280,000

Hence, the gain on the revaluation of the Sharpe stock is credited.

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3 years ago

A merchandiser purchased inventory on account for $18,000. under the periodic inventory system, the journal entry to record the

stellarik [79]

The correct answer for this question is letter D. It must be debited to purchases and credited to accounts payable. Asset increases so it must be debited and the purchases is the account title used in periodic inventory system while merchandise inventory is used in the perpetual inventory system. And it is credited to accounts payable because there is an increase in our account and this is the normal side of accounts payable.

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3 years ago

I just failed my test what happen

balandron [24]

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2 years ago