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2 years ago

What happens when a bank is required to hold more money in reserve?

Business

1 answer:

valina [46]2 years ago

8 0

The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.

<h3>What happens when reserve requirements are increased?</h3>

Banks are known to often hold a lot of reserves if reserve requirements are increased.

This is because it is one that they can be able to use if they want to loan out less of each dollar that is said to be deposited. By raising the the reserve ratio, and also lowers the money multiplier, and lowering the money supply.

Therefore, The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.

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A process cost summary for a production department accounts for all costs assigned to that department during the period plus cos

tigry1 [53]

Explanation:

The process cost shows the summary of the activities related to the production. It includes the cost of goods completed & transferred units and the ending work in process inventory.

So, the given statement is true

The indirect cost are come under the manufacturing overhead cost. So, it would be charged to overhead control account

Thus, the given statement is false.

The direct labor includes that labor which is directly related to the production process of a product. So the single production department is likely to be a direct labor

Thus, the given statement is true.

To record the allocation of overhead, the following journal entry is required

Work in Process Inventory, Baking Dept A/c Dr $24,500

To Factory overhead A/c $24,500

(Being the overhead allocation is recorded)

The computation is shown below:

= Direct labor cost × allocation rate

= $10,000 × 245%

= $24,500

Thus, the given statement is true.

7 0

4 years ago

Diogo has a utility function,U(q1, q2) = q1 0.8 q2 0.2,where q1 is chocolate candy and q2 is slices of pie. If the price of slic

guapka [62]

Answer:

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

Explanation:

U(q₁ q₂)

$q_1^{0.8}q_2^{0.2}\\\\P_1= \$0.5 \ P_2=\$1 \ Y=100$

Budget law can be given by

$P_1q_1+P_2q_2=Y\\\\0.5q_1+q_2=100$

Lagrangian function can be given by

$L=q_1^{0.8}q_2^{0.2}+ \lambda (100-0.5q_1-q_2)$

First order condition csn be given by

$\frac{dL}{dq} =0.8q_1^{-0.2}q_2^{0.2}-0.5 \lambda=0\\\\0.5 \lambda=0.8q_1^{-0.2}q_2^{0.2}---(i)$

$\frac{dL}{dq} =0.2q_1^{0.8}q_2^{-0.8}- \lambda=0\\\\ \lambda=0.2q_1^{0.8}q_2^{-0.8}---(ii)$

$\frac{dL}{d \lambda} =100-0.5q_1-q_2=0\\\\0.5q_1+q_2=100---(iii)$

From eqn (i) and eqn (ii) we have

$\frac{0.5 \lambda}{\lambda} =\frac{0.8q_1^{-0.2}q_2^{0.2}}{0.2q_1^{0.8}q_2^{-0.8}} \\\\0.5=\frac{4q_2}{q_1}\\\\q_1=8q_2}$

Putting $q_1=8q_2$ in euqtion (iii) we have

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

3 0

3 years ago

Bonita Industries purchased a depreciable asset for $174500. The estimated salvage value is $14300, and the estimated useful lif

jok3333 [9.3K]

Answer:

Annual depreciation= $16,020

Explanation:

Giving the following information:

Purchase price= $174,500

Salvage value= $14,300

Useful life= 10 years

T<u>o calculate the depreciable base, we need to use the following formula:</u>

<u></u>

Depreciable base= purchase price - salvage value

Depreciable base= 174,500 - 14,300

Depreciable base= $160,200

N<u>ow, we can determine the annual depreciation:</u>

Annual depreciation= depreciable base /estimated life (years)

Annual depreciation= 160,200 / 10

Annual depreciation= $16,020

6 0

3 years ago

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil f

zubka84 [21]

Answer:

a. Raw Material Purchases (Dr.) Nkr200,000

Accounts Payable (Cr.) Nkr200,000

b. Work in process (Dr.) Nkr185,000

Raw material (Cr.) Nkr185,000

c. Manufacturing Overhead (Dr.) Nkr63,000

Selling and admin Overheads (Dr.) Nkr7,000

Utility expense (Cr.) Nkr70,000

d. Direct Labor wages (Dr.) Nkr230,000

Indirect Labor wages (Dr.) Nkr90,000

Selling and admin Salaries (Dr.) Nkr110,000

Salaries Expense (Cr.) Nkr 430,000

e. Maintenance expense (Dr.) Nkr54,000

Cash (Cr.) Nkr54,000

f. Advertising expense (Dr.) Nkr36,000

Cash (Cr.) Nkr36,000

g. Depreciation Expense (Dr.) Nkr95,000

Accumulated depreciation (Cr.) Nkr95,000

h. Rent Expense (Dr.) Nkr20,000

Cash (Cr.) Nkr20,000

Explanation:

i. No entry

j. Finished goods (Dr.) Nkr770,000

Cost of goods manufactured (Cr.) Nkr770,000

k. Cash (Dr.) Nkr1,200,000

Sales (Cr.) Nkr1,200,000

8 0

3 years ago

A company has annual sales of $32,000 and accounts receivables of $2,200. The gross profit margin is 31.3%. The receivable days

marissa [1.9K]

Answer: 80.17 days

Explanation:

The Receivable days estimated is calculated by the formula:

= Accounts receivable * 365 / (Annual sales * Gross profit margin)

= 2,200 * 365/ (32,000 * 31.3%)

= 2,200 * 0.03644169329

= 80.17 days

8 0

3 years ago