Answer:
D, doing all of the above
Explanation:
Deposit outflow is a situation in which deposits are lost as a result of continous withdrawals by depositors.
In other for banks to protect themselves from this sort of situation, the bank can choose to do all of the options in the questions which includes callin-in loans, holding excess reserves and/or selling securities. This helps the bank to maintain account balances amongst other things.
To reduce or eradicate deposit outflow is the reason for deposit insurance. Deposit Insurance corporations or companies helps banks to reduce their deficits or losses when they are at the point of not being able to pay deposits when due.
Cheers
Complete Question
Annual rent $ 7,380
Insurance 145
Security deposit 650
Annual mortgage payments $9,800 ($9,575 is interest)
Property taxes 1,780
Insurance/maintenance 1,050
Down payment/closing costs 4,500 Growth in equity 225
Estimated annual appreciation 1,700
Assume an after-tax savings interest rate of 7 percent and a tax rate of 28 percent.
(a) Calculate the total rental cost and total buying cost.
Answer:
Explanation:
(a)Rental Costs
Buying Costs $7,380
Rent $9,800
The following calculations were made:
Interest lost on security deposit
= Security deposit × 7%
= $650 × 0.07 = $45.5
Interest lost on down payment and closing cost
= Down payment × 7%
= $4,500 × 0.07 = $315
Tax savings for mortgage interest =
Interest × 28%
$9,575 × 0.28 = $2,681
Tax savings for property taxes =
= Property taxes × 28%
$1,780 × 0.28 = $498
Your answer is Cost-Push.
Cost push inflation – this occurs when there is a rise in the price of raw materials, higher taxes, e.t.c
The answer to this is D. Core Values
Answer:
$96,000
Explanation:
Production 26,000 units
<u>Materials Purchase Budget</u>
Production Materials Required (5×26,000 units) 130,000
Add Budgeted Closing Materials (50,000×20%×5) 50,000
Total Materials 180,000
Less Budgeted Opening Inventory (4,000×5) (20,000)
Budgeted Materials 160,000
Material Cost per pound $0.60
Total Material Cost $96,000
Therefore, the materials purchases budget will be for the month ending April 30 will be $96,000.
