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3 years ago

In a fractional-reserve banking system, an increase in reserve requirements__________.

Business

1 answer:

juin [17]3 years ago

8 0

Answer:

b. decreases both the money multiplier and the money supply.

Explanation:

An increase in reserve requirements will decrease the money supply in the economy. This is because, banks and other financial institutions will have lower excess reserves to lend out to the public hence decreasing the overall amount of borrowing . Based on money multiplier, the explanation is based on the following equation;

Money multiplier = 1/ required reserve , if the required reserve increases then the fraction will be smaller. Therefore, the money multiplier will decrease too.

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Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fa

faust18 [17]

Answer:

C. $40,000

Explanation:

For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis

= Cash received + fair market value of the stock - adjusted cash basis

= $40,000 + $60,000 - $35,000

= $100,000 -$35,000

= $65,000

But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000

4 0

3 years ago

Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?

Simora [160]

Hello, your correct answer is,

<span>C) Tree branch breaks your bedroom window during a storm.

Hope I helped, tell me if I'm wrong!
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8 0

3 years ago

Read 2 more answers

Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists f

Zina [86]

Answer:

Model Y

Explanation:

Calculation for the which model is the most profitable to produce

Using this formula

Most profitable to produce=Selling price-Direct materials-Direct labor-Variable support costs

Let plug in the formula

Model X $52 - $8 - $16- $5 = $23

Model Y $60 - $8- $16 - $10 = $26 Most profitable

Model Z $74- $8 - $33 - $10 = $24

Therefore the model that is the most profitable to produce is MODEL Y because it has the highest amount of $26

5 0

3 years ago

Jeff was in a department store standing near a clothing rack. Store security felt that he was acting suspiciously because he was

liraira [26]

Answer:

c. No; the facts of this situation do not provide reasonable grounds for a stop and search. Any attempt to do so by store security could result in a claim of false imprisonment.

Explanation:

According to the situation described in the question above, store security has no right to stop and search for Jeff. Therefore, the letter c is the most correct answer to this question.

Jeff's actions in the store do not provide sufficient reasons for there to be any kind of stop and research, as the facts in the situation do not provide enough information about an illegal act, so if store security forces a situation there could be legal damage to the store .

Therefore, it is essential that stores adopt a theft prevention strategy, with an effective security system and a team prepared to carry out correct approaches.

4 0

3 years ago

A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu

Gwar [14]

Answer:

$582,100

Explanation:

Cost of land $570,000

Less;Salvage parts sold ($23,000)

Demolition of old building $33,000

Land preparation and leveling $2,100

Total cost of land $582,100

The ground breaking ceremony expenses are not capital expenditures therefore ignored in above working.

4 0

4 years ago