Answer:
The correct answer is $900.
Explanation:
According to the scenario, computation of the given data are as follows:
Reserve required = New deposits of cash × Reserve ratio%
= $1000 × 30/100
=$300
Excess reserve from Andy ‘s deposit = New deposit – Reserve required
= $1,000 – $300
= $700
Total reserve excess = New reserve excess + Old reserve excess
= $700 + $800
= $1,500
After lending to molly excess reserve = Total reserve excess – Amount lending to molly
= $1,500 - $600
= $900
The bank has only $900 excess reserve. So, Bank can only give $900 for lending.
Answer:
a.Mental budgeting
Explanation:
Mental budgeting refers to the use of one's cognitive abilities to plan for incomes and track down expenditure. It involves the mental separation of economic categories of income and expenses. A household practicing mental budgeting does not make written plans for its expected revenues or how its income will be spent.
Mental budgeting is applicable where income is low, or the amount being budgeted for is little. The figures involved can be memorized easily, and the budget lines are few.
When the budget amount is huge, mental budgeting can lead to over or under consumption. Confusion is likely to occur, such that a that a firm or individual may borrow and save simultaneously.
Answer:
threat of new entrants
Explanation:
Based on the information provided within the question it can be said that force that has affected Sasha's business, from Porters five forces was the threat of new entrants. This force refers to the threat that comes from new competitors entering an industry with existing competitors. If the barrier to entry of the market is low/easy for these new companies then it creates a huge threat to the existing company's since it allows them to get established in the market fast and at a low cost.
<span>If the head of your firm’s accounting department has asked you to find a formula she can use in a computer program to calculate the year-end inventory of gasoline in the company’s tanks, then you should evaluate or solve the integrals.</span>
Answer:
Check the following definitions
Explanation:
a. Maturity matching simply means that long term funds should be used to finance long term assets and short term funds should be used to finance short term assets.
That means, long terms funds will finance fixed assets and permanent working capital while short term funds will finance temporary working capital.
If permanent assets are financed with short term funds, then refinancing risk arises, i.e. borrower has to refinance the loan at its maturity date which is of a shorter period. On the other hand if long term funds are used to finance short term assets, then interest has to be paid for the longer period when funds are not even used.
b.
Aggressive approach :
Under the aggressive approach, the firm finances all temporary current assets and some of its permanent current assets with short-term sources of financing. This approach relies more heavily on short-term financing than the other approaches. This brings a little refinancing risk and decrease in profits as short term funds are costlier than long term funds.
Conservative approach:
Under the conservative approach, the firm finances long-term assets, all permanent current assets, and some temporary current assets with long-term sources of funds. This approach relies more heavily on long-term financing than the other approaches. This involves higher pay back period which involves more interest outflow.
c.
Generally, all the approahes have their own advantages and disadvantages. The decision of chosing the approach depends on the circumstances of the entity as to requirement of funds, pay back period etc. But the maturity matching approach can be said to be better as it maintains balance between inflow and outflow of funds.