A $ 300
B $ 300
C $ -300
D $ 300
Treasury bills are assets and the monetary base is a liability.
<u>Explanation:</u>
To increase the money supply in the economy, the federal reserve should buy the treasury bills and this will increase the money supply in the economy, leading to more demand in the economy and therefore there will be growth and development of the economy.
With the increase in the purchase of the treasury bills by the federal reserve, the money supply will increase by $300.
Answer:
The answer is: Cash and marketable securities $5,406,393
Explanation:
We have:
+ Current ratio = Current asset / Current liabilities = 2; with Current liabilities is given at $8 million => Current asset is $16 million;
+ Current asset = Inventory + Account Receivable + Cash and marketable securities <=> Cash and marketable securities = $16 million - Inventory - Account Receivable ( as current asset is calculated above at $16 million)
+ Average collection period = Account Receivable/ Credit Sales x 365 <=> Account Receivable = Average collection period/365 x Credit sales = 30/365 x 64 million = $5,260,274
+ Inventory turnover = Sales / Inventory <=> Inventory = Sales/ Inventory turnover = 64 million / 12 = $5,333,333
=> Cash and marketable securities = 16,000,000 - 5,333,333 - 5,260,274 = $5,406,393.
Answer:
$48,000
Explanation:
The computation of ending inventory using average method is shown below
Total units = 200 + 400 + 100 = 700
Total cost = (200 × $140) + (400 × $160) + (100 × $200)
= $28,000 + $64,000 + $20,000
= $112,000
Average cost per unit = $112,000/700 = $160
Ending inventory = Total units - units sold
= 700 - 400
= 300
Therefore, cost of ending inventory = Ending inventory × Average cost per unit
= 300 units × $160
= $48,000
Answer:
rise, fall, rise, fall, fall, exchange rate
Explanation:
When there is a change in the level of price it will cause the real value to change as well. This is due to the fact that real value is basically relative price i.e., nominal value adjusted by inflation.
This rise in price effects the demand for exports, which in return falls due to higher goods rates. And the effect is opposite for imports which would now rise. The combination effect of imports and exports results in the change in the net exports which would also fall due to rise in imports and fall in the exports. Overall, this effect is known as the exchange rate effect.
