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2 years ago

Reserves are an asset to commercial banks but a liability to the federal reserve banks because?

1 answer:

8 0

Reserves are an asset to commercial banks but a liability to the federal reserve banks because these funds are cash belonging to commercial banks, but they are a claim the commercial banks have against the Federal Reserve Bank.

Commercial banks are critical to the fractional reserve banking device, currently determined in most evolved nations. This permits banks to increase new loans of up to (generally) 90% of the deposits they have available, theoretically growing the economic system through releasing capital for lending.

Commercial banks are what most people think about once they listen to the time period "financial institution." industrial banks are for-profit establishments that receive deposits, make loans, guard belongings, and paintings with many different varieties of clients, which includes most people and groups. in case your account is with a community financial institution or credit score union, it might probably now not be an industrial bank, however.

A commercial bank is an economic organization that accepts deposits from the public and offers loans for the functions of consumption and investment to make a profit.

Learn more about commercial banks here brainly.com/question/1238952

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The rate established at the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct

Bumek [7]

Answer:

Predetermined overhead rate

Explanation:

The predetermined overhead rate is the rate that is computed by taking the estimated manufacturing overhead and the same would be divided by allocation factor that could be estimated direct labor, estimated direct hours, etc in order to assign the overhead cost

So according to the given situation, the first option is correct i.e. predetermined overhead rate

5 0

3 years ago

Shaan and Anita currently insure their cars with separate companies, paying $850 and $675 a year. If they insure both cars with

lana66690 [7]

Answer: $1,622.08

Explanation:

Currently both Shaan and Anita are cumulatively paying;

= 850 + 675

= $1,525

Their savings are;

= 1,525 * 10%

= $152.50

As this saving is fixed, it is an annuity. The future value over 8 years at 8% is;

Future Value of Annuity = Annuity * Future value annuity factor, 8 years, 8%

= 152.50 * 10.6366

= 1,622.0815‬

= $1,622.08

6 0

3 years ago

Ayayai Corporation had net sales of $2,404,500 and interest revenue of $37,700 during 2017. Expenses for 2017 were cost of goods

bulgar [2K]

Answer:

Ayayai Corporation

Income statement for the year end 2017

Net sales of $2,404,500

Interest revenue $37,700

Total revenue $2,442,200

Cost of goods sold ($1,466,900)

Gross Income $975,300

Administrative expenses ($214,700)

Selling expenses ($284,600)

Interest expense ($47,200)

Profit before tax $428,800

Tax rate is 30%. ($128,640)

Net Income $300,160

Explanation:

Multi-step income statement segregates the operational income and non operation income by calculating the gross income and net income as well. it shows that how much the business is earning from it operations directly and how much it earns after settling all the expenses of the business.

7 0

3 years ago

The final step in the decision-making process requires that mangers: a.select from a set of potential alternatives. b.identify t

nasty-shy [4]

Answer:

c.evaluate the effectiveness of their decision.

Explanation:

Evaluation of outcomes or results of decision made is a very important final step in the decision making process. Lessons can be learnt on how to make processes better in the future. If the outcome is not favourable it is an indicator that another approach should be formulated to solve the problem.

The steps in manager's decision making are:

-Identify the problem

-Seek information

-Brainstorm solutions

-Weigh alternatives

-Choose alternative

-Implement plan

-Evaluate effectiveness of decision

3 0

3 years ago

Sunland Company’s 12/31/18 balance sheet reports assets of $6940000 and liabilities of $2740000. All of Sunland’s assets’ book v

Serjik [45]

Answer:

$2,460,000

Explanation:

For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = The fair market value of assets + excess value of land - the fair market value of liabilities

= $6,940,000 + $414,000 - $2,740,000

= $4,614,000

And, the purchase value of Sun land is $7,074,000

So, the goodwill would be

= $7,074,000 - $4,614,000

= $2,460,000

3 0

3 years ago