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charle [14.2K]
3 years ago
11

What does it mean to say that "banks create money"?

Business
1 answer:
vova2212 [387]3 years ago
8 0
The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves 
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joan made deductible contributions to traditional retirement accounts for several years. in 2018 she decided to withdraw $10,000
lukranit [14]

Answer:

Joan will pay income tax on the $10,000 she withdrew in 2018.

Explanation:

When withdrawing from traditional retirement account, the following rules apply:

1. Withdrawals before attaining the age of 59.5 years attract a penalty of 10%, along with income tax on the amount withdrawn.

2. Withdrawals after the age of 59.5 years are treated as income, so income tax is paid on it. In this case tax on the $10,000 withdrawn.

3. At age 70.5 and above you must take the Required Minimum Distribution (RMD) from the pension account.

Note: Roth IRA does not attract tax payments for ages 59.5 years and above, unlike traditional IRA that attracts income tax.

RMD payments does not apply for Roth IRA.

4 0
3 years ago
Formal tax definition<br>​
const2013 [10]

Answer:

Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States. Formal tax legislation follows specific steps as defined by the U.S. Constitution.

Explanation:

4 0
2 years ago
Read 2 more answers
Rebecca sells her personal scooter for $550. she purchased the scooter for $700 three years ago. she also sells a painting for $
likoan [24]
Rebecca sells her personal scooter = $550
And she purchased three years ago for $700
loss in the selling of scooter = $700 - $550
 = $150
she sell painting for $1200
and he purchased that painting five years ago = $900
profit = $1200 - $900
$300
So $300 - $150  = $150
She still get benefit on selling both things
8 0
3 years ago
Which of the following should which of the following should be of concern when a company considers expanding into a new Internat
vladimir1956 [14]
I think it might be (all of the above)
8 0
3 years ago
Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and the "Clean as
drek231 [11]

Answer:

d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.

Explanation:

Liability is the degree to which a person is responsible for injury that happens to another party in a lawsuit. Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and "Clean as a Whistle Co." as cleaners.

Peter will be least liable if Emralda from "Clean as a Whistle Co." runs over Patty I'm the dealership's parking lot.

This is because Peter hired the company as a seperate entity from the cleaning company employees. The conduct of employees from the cleaning company is responsibility of "Clean as a Whistle Co."

8 0
3 years ago
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