Answer:
$3,325
Explanation:
Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.
In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.
the maximum possible increase in the money supply as a result of your bank deposit is $3,325.
Answer and Explanation:
The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods
While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time
Based on this, the classification is as follows
1, Economics of scale as the output rises that declines the LAC so automatically it goes downward
2. economics of scope
Answer:
The journal entry to record the issuance of new stocks is:
Dr Cash 164,800
Cr Common stock 72,100
Cr Additional paid in capital in excess of par value 92,700
When you issue new stocks, the common stock account increases by par value (= 10,300 stocks x $7). Any money obtained over par value must be recorded under the additional paid in capital account (= 10,300 x $9).
Answer: Option (a) is correct.
Explanation:
Given that,
Dividend in 2016 = $20,000
Preferred Shares = 400
Par Value of Preferred Stock = 400 × 10 = $4000
Rate of Dividend of Preferred Stock = 5%
(a) Dividend to preferred Shareholders:
= Par Value of Preferred Stock × Rate of Dividend
= $4000 × 5%
= $200
(b) Dividend to Common Shareholders:
= Total Dividend - Dividend to Preferred Shareholders
= $20,000 - $200
= $19,800
