Is it true that accounting has its own language?

Assume there is a required reserve ratio of 10% and that banks keep no excess reserves. In which of the following scenarios is t

cluponka [151]

Answer:

ii. The Fed purchases $1,000 worth of government securities from a commercial bank.

In this case there will be a bigger increase in money supply, the reason for this is that when the fed purchases $1,000 of securities, the commercial bank will not be required to keep any proportion of that money as the reserve ratio only applies to deposits, whereas this money belongs to the commercial bank itself so it will loan all $1,000 as the bank keeps no excess reserves, where as when Jane deposits $1,000 the bank can only loan out $900 as it is required to keep 10% as reserve. The money multiplier is 1/reserve ratio so in this case 1/0.1= 10. So when Fed buys securities the money supply will increase by 10*1,000= $10,000 and when Jane deposits money the money supply will increase by 10*900= $9,000

Explanation:

4 0

3 years ago

Complete the sentences with the correct function of money. Norah walks into her favorite department store, Bullseye, to pick out

Illusion [34]

Answer: Unit of account

Store of value

Medium of exchange

Explanation: Money has three functions:

Unit of account

Store of value

Medium of exchange

Unit of Account- Money can be used as a measure in determining value of goods and services. Norah compared the price of the dress to determine the dress costs less.

Store of value- money retains it value over periods of time, therefore it can be used to store value. Norah is saving money in a piggy bank.

Medium of exchange - money is used to facilitate transactions: it can be used to exchange for goods and services. Norah exchanged money for a dress.

I hope my answer helps.

4 0

3 years ago

Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each

zimovet [89]

Answer:

Cost per unit of overhead = $330,891.46/550 = $601.62

Explanation:

Total units produced of A4 = 550

Activity Total cost Activity rate of A4 Total Activity

Labor Related $160,558 3,575 DLH 6,550 DLH

Machine Setup $8,050 550 Setups 1,000 Setups

Order Size $497,027 3,700 MHs 7,700 MHs

Total $665,635

Overhead applied to Product A4

Labor = $\frac{160,558}{6,550} \times 3,575 = 87,632.80$

Machine Setup = $\frac{8,050}{1,000} \times 550 = 4,427.5$

Order Size = $\frac{497,027}{7,700} \times 3,700 = 238,831.16$

Total Cost for 550 units = $87,632.80 + $4,427.5 + $238,831.16 = $330,891.46

Cost per unit of overhead = $330,891.46/550 = $601.62

8 0

4 years ago

In attempting to become financially organized a person must ?

IgorC [24]

A person must frequently discover the complexity of his or her financial situation.

8 0

3 years ago

What does it mean when a return is reject for code 0503

VLD [36.1K]

An IRS 0503 code means the spouse's name and last 4 digits of their social security do not match IRS records. This could happen by mistake or if the person has changed their name without updating records.

6 0

4 years ago