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1 year ago

When one commercial bank borrows from another commercial bank, it pays the __________ rate.

Business

1 answer:

Len [333]1 year ago

4 0

When one commercial bank borrows from another commercial bank, it pays the discount rate.

The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.

The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.

The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.

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Zachary Corporation expects to incur indirect overhead costs of $163,150 per month and direct manufacturing costs of $19 per uni

Arlecino [84]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated overhead cost a month= 163,150

Direct manufacturing costs= $19 per unit.

Estimated production in units

January= 4,800

February= 8,600

March= 4,600

April= 7,100

Total= 25,100 units

Total overhead= 163,150*4= $652,600

A) To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 652,600/25,100= $26 per unit

B) To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January= 26*4,800= $124,800

February= 26*8,600= $223,600

March= 26*4,600= $119,600

April= 26*7,100= $184,600

C) The total cost per unit is calculated using the allocated overhead and the direct manufacturing cost per unit.

Total cost per unit= unitary overhead + direct manufacturing cost per unit

Because the unitary allocated overhead and direct manufacturing cost per unit remain constant during the four months, the total cost per unit is the same.

Total cost per unit= 26 + 19= $45

5 0

3 years ago

Jeff is an entrepreneur who decided to start an online bakery. Since all his business will be done online and he can bake in his

nekit [7.7K]

Answer:

competition

Explanation:

In simple words, competition refers to the tendency of two or more parties to perform better than one another for the sake of own personal benefits. In business, competition can be done from various perspectives like price or quality.

In the given case, Jeff has been producing at a lower cost but despite of earning high profits he is willing to sell for lower prices with the motive of competing in the market and gaining higher market share.

6 0

2 years ago

This morning, DJ’s invested $238,000 to help fund a company expansion project planned for three years from now. How much additio

rusak2 [61]

Answer:

$3,842.78

Explanation:

We must determine the future value of the money invested and then calculate the difference between both return rates. We can use the future value formula: FV = present value x (1 + return rate)ⁿ

3.5% ⇒ FV = $238,000 x (1 + 3.5%)³ = $238,000 x 1.035³ = $263,874.85

4% ⇒ FV = $238,000 x (1 + 4%)³ = $238,000 x 1.04³ = $267,717.63

difference = $267,717.63 - 263,874.85 = $3,842.78

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3 years ago

Rick's Internet Corporation's balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriat

gtnhenbr [62]

Answer is D. remain at $30,000.

Explanation:

Rick's Internet Corporation balance in retained earnings = $30,000

Appropriated earning for future business expansion = $15,000

This appropriated earning set for future use will have no effect on the total retained earnings, because for appropriate retained earnings, the entry is to debit the retained earnings account.

Also, it would be board's decision if they want to use the money from the retained earnings or add more capital to it.

6 0

2 years ago

The opportunity cost of a choice is the _____ of the opportunities lost.a. Valueb. Interest

salantis [7]

Answer:

a. Value.

Explanation:

The opportunity cost of a choice is the value of the opportunities lost.

In Economics, Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Hence, the opportunity cost of a choice is the benefits that could be derived in from another choice using the same amount of resources.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.

5 0

3 years ago