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2 years ago

A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of?

Business

1 answer:

blsea [12.9K]2 years ago

3 0

A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.

<h3>What is reserve ratio?</h3>

The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.

Some key points related to reserve ratio are-

The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
Regulation D of the Federal Reserve Board establishes the reserve ratio.
Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).

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Dorothy Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e

tensa zangetsu [6.8K]

Answer:

Explanation:

April 2

Dr Cash 34,830

Dr Equipment 15,540

Cr Owner's capital 50,370

April 2

no entry

April 3

Dr Supplies 830

Cr Accounts payable 830

April 7

Dr Rent expense 630

Cr Cash 630

April 11

Dr Accaunts receivable 1360

Cr Service Revenue 1360

April 12

Dr Cash 3940

Cr Unearned service revenue 3940

April 17

Dr Cash 2950

Cr Service Revenue 2950

April 21

Dr Insurance expense 150.30

Cr Cash 150.30

April 21

Dr wages expense 1280

Cr Cash 1280

April 30

Dr Supplies expense 130

Cr Supplies 130

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Dr Equipment 7000

Cr Owner's capital 7000

4 0

3 years ago

When underapplied or overapplied manufacturing overhead is prorated, amounts can be assigned to which of the following accounts?

laila [671]

Answer:

b. Cost of Goods Sold, Work-in-Process Inventory, and Finished-Goods Inventory.

Explanation:

Whenever manufacturing overheads are prorated and under-applied or over-applied, then they are charged to inventory or cost which includes overheads as part of it.

As for instance, raw material inventory do not include any overheads, it is just the purchase price of inventory, as no work is performed on it.

Cost of goods sold, includes all the cost incurred to sale the good, from acquiring raw material to converting finished goods, and then adding the sales expense the goods are sold.

Finished goods include every material and overhead to convert the item into finished state and usable state.

Work in process is half way completed, or the percentage prescribed and includes raw material, includes overheads, but the product is somewhere more than raw inventory and less than finished good.

Therefore, correct option is:

7 0

3 years ago

Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if,

yulyashka [42]

Answer:

The question is not complete.

Here is the complete question:

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule)

Required:

a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $40,000 of additional deductions?

Here are the answers:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according IRS tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

6 0

3 years ago

While working at his factory job, joe slipped on the wet floor. he went to the doctor where they told him he broke his ankle. wh

Svetlanka [38]

Worker's Compensation, because the injury occurred by an employee in the course of performing their job.

4 0

3 years ago

General mills actively researches people who don't buy their products to find out why they are not adopters. this practice is m

Margaret [11]

Answer:

The answer is idea generation.

Explanation:

Idea generation refers to the process of creating and developing ideas. During this process, General Mills would come up with ideas and test whether this product would interest people to buy it. At this step as well General Mills can explore why previous products did not succeed and strive to counter these obstacles in the future product.

8 0

3 years ago