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scoundrel [369]
3 years ago
11

Suppose you have $10,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu

ture use. If the required reserve ratio is 10%, what will be the maximum impact on money supply today as a result of your action?
Business
1 answer:
trapecia [35]3 years ago
8 0

Answer:

The Money supply will decrease by $4,500

Explanation:

What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.

Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.

Hence, you can easily calculate the effect by using the simple money multiplier.

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Hushovd Iron Works has collected the following data for its Thunderbolt line of​ products: Direct materials standard 15 pounds p
Hitman42 [59]

Answer:

The direct material quantity variance is $10,800 favourable.  (the options in the question are not correct).

Explanation:

The direct materials quantity variance represents a difference between what was actually produced and the standard or idea that should have been produced especially with regards to the use of direct materials.

To calculate material quantity variance

Step 1:Calculate the Standard Usage of Material

Formula= (Actual Units of Finished goods Purchased x Standard Price of Material per unit)

= 4,000 units x 15 Pounds

= 60,000 Pounds

This means the standard material usage is 60,000 pounds

Step 2: Now calculate the Direct Material Quantity Variance

Formula= (Standard Material Usage - Actual Material Usage) x The Standard Price per Unit of Material

= 60,000 pounds (computed in step 1) - 40,000 pounds (given in the question)

= 20,000 pounds x $0.54

=$10,800

Since the standard Material is higher than the actual material usage, it means that the answer is as follows;

The direct material quantity variance is $10,800 favourable.

Kindly note that the multiple options in the question above are for a different set of figures and a different question.

6 0
2 years ago
The final step in recognizing the completion of production requires a company to:
BaLLatris [955]

Answer:

A. debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Explanation:

The work in progress cannot yet be debited because it cannot be sold while the finished goods represent cash.

3 0
3 years ago
Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,500. The m
Ganezh [65]

Answer:

$479,500

Explanation:

To determine the interest due for the first payment we can solve the following:

interest due on payment 1 = total debt x interest rate x 1/12 = $480,000 x 10% x 1/12 = $4,000

Now we need to subtract the interest due from the first payment:

principal paid = payment - interest due = $4,500 - $4,000 = $500

remaining principal = $480,000 - $500 =  $479,500

8 0
2 years ago
In Florida it is customary for the seller to pay the document tax on the deed. If the sale price is $115,000, how much will the
Dennis_Churaev [7]

Answer:

805

Explanation:

The document tax which is to be paid by the seller in Florida on deed is $0.70 per $100 of the sale value.Based on this, the document tax on the sale price of $115,000 shall be calculated as follows:

Document tax=(Sale value/100)*0.70

Sale value=$115,000

Document tax=(115,000/100)*0.70

                       =1,150*0.70

                       =805

4 0
3 years ago
Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at i
LekaFEV [45]

Answer: C. it's a good time to buy the wood.

Explanation:

$500 = 738NZ dollars, therefore 738 NZ dollar ÷ $500 = 1.476NZ dollar

The current exchange rate is $1 = 1.476NZ dollar

10 foot slab costs $5000, Tee Golf Resort will pay $ 3387.53 ($5000/1.476NZ)

if they import wood from New Zealand. Tee Golf Resort will pay less than $5000 if they import Wood from New Zealand at the current exchange rate. This is a Good time for them to import woods

5 0
2 years ago
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