Answer:
$3,325
Explanation:
Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.
In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.
the maximum possible increase in the money supply as a result of your bank deposit is $3,325.
Answer: B: a degree
Trade Associations provide all of the following a degree.
Explanation:
Trade Associations refer to a group of people in a particular business or trade, who come together to promote their common interests. They are established to set laws and provide great knowledge to companies within the industry. Members operate in the same industry. They are non-profit organizations who provide different learning tools for businesses in a particular industry. They are also known as trade organization.
Answer:
the total cost of ordering and holding sugar is $1,000 per year
Explanation:
<em>Step 1 Calculate the Economic Order Quantity(EOQ).</em>
EOQ = √(2×Total Demand×Ordering cost)/ Holding Cost per Unit
= √(2×250×20×5)/20
= 50
<em>Step 2 Calculate the total cost of ordering and holding sugar</em>
Total cost = Ordering Cost + Holding Cost
= (250×20)/50 × $5 + 50/2 × $20
= $500+$500
= $1,000
Therefore, the total cost of ordering and holding sugar is $1,000 per year
Answer:
The price as a percentage of the treasury stock is 104.23%
The price as a percentage of the BBB-rated corporate bond is 98.37%
The credit spread on the bond is 1.40%
Find detailed computations in the attached.
Explanation:
The credit spread on BBB-rated corporate bond is the difference between its effective interest rate and the interest rate on the U.S government treasury security,that is:
7.7%-6.3%=1.40%
Note that the par value of a bond is usually $1000.
Answer:
income summary 550 debit
retained earnings 550 credit
--to close income sumary against RE--
Explanation:
To complete the closing entries we should determinate the balance of the Income Summary account and then, transfer into Retained Earnings.
Income Summary
<u> Debit Credit </u>
2,450
<u> 3,000 </u>
Balance 550
We will debit income summary so his blanace ends in zero and credit retained earnings so net income is accumualted and added into equity to represent it in the balance sheet.
