Answer:
The correct answer is C
Explanation:
Bank asset is the assets which represent the ownership of the value capable of being converted into cash. So, the reserve which the banks hold or refrain from using will be classified as the asset for the bank. And the deposit made by the customer will be classified as the current liability as the bank allows the customers to use their deposits whenever they want to use.
Therefore, the reserve is a part of bank asset whereas the deposits will not be a part of bank asset.
Answer:
annuity factor for 20% and 6 periods = 3.326
Explanation:
the IRR represents the discount rate at which a project's NPV = 0
NPV = initial outlay + PV of future cash flows
NPV = 0
initial outlay = -$831,500
PV of future cash flows = $831,500 = cash flow x annuity factor
annuity factor = $831,500 / $250,000 = 3.326
using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.
So our IRR = 20%
Answer:
A. An update of the Fair value adjustment account
D. The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period
Explanation:
The value of an equity investment that lacks significant influence is adjusted at the end of each accounting period against an unrealized gain/loss account.
When the equity investment is sold, the unrealized gain/loss account will become realized depending on the sales value. Before any final gain or loss is realized, an adjustment must be made to the investment's Fair value adjustment account.
E.g if the investment X's balance account was $510,000 and its fair market value was $550,000, we would first need to adjust the fair value:
Dr Fair value adjustment of investment X 40,000
Cr Unrealized holding gain 40,000
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Answer:
This means that Kimberlei's GDP is <em><u> less sensitive than </u></em> Clarkistan's GDP to fluctuations in the components of total spending.
Clarkistan's economy is <em><u>more </u></em>sensitive to fluctuations in GDP than Kimberlei's economy. This is because the personal income tax has <em><u> reduced </u></em> Kimerlei's multiplier.
Explanation:
As Kimberlei multiplier is lower, the government spending fluctuation will have a lower impact than in Clarkistan as the goverment spending multiplier in the latter is higher thus, a fluctuation increases or decrease the GDP in a higher proportion.
Clarkistan Economy is more sensitive as their government has a higher multiplier when it decreases for recessions it will increase by a higher amount
while Kimberlei as the income tax decreases th effect of the multiplier It is lower. thus the change in GDP is also lower
