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neonofarm [45]
3 years ago
12

A bank has excess reserves of $1,000,000 and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h

ow much will the money supply increase when the loan is made
Business
1 answer:
lianna [129]3 years ago
3 0

Answer:

Money supply increase=500000/10%=5000000

Explanation:

You might be interested in
Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000. Also, cash of $50,000 was borrowe
zhannawk [14.2K]

Answer:

$520,000

Explanation:

Kela corporation reports a net income of $450,000

The depreciation is $70,000

A cash of $50,000 was borrowed on a 5-year note payable

Therefore, the total cash inflows from operating activities can be calculated as follows

= Net income+depreciation

= $450,000+$70,000

= $520,000

Hence the total cash inflow from operating activities is $520,000

8 0
3 years ago
Pauline is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Pa
Morgarella [4.7K]

Answer:

Store atmosphere

Explanation:

There are various techniques used by companies to attract more customers. One of them is to design the shop in the best way possible. Pauline is thinking about designing the place and making decisions about the colours and layout because Pauline understands that the store atmosphere and the looks can certainly affect the customer's purchase decision.

8 0
4 years ago
A negative oil price shock: It is common to blame some of the poor macroeconomic per- formance of the 1970s on the rise in oil p
Yanka [14]

Answer:

A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.

7 0
3 years ago
1. Name several business etiquette guidelines that promote positive workplace conversations, in the office and at work-related s
Maru [420]

Answer:

Please see explanations below

Explanation:

1.

• Ignore or avoid negative remarks when interacting with people either at work or anywhere.

• Give sincere and specific praise to people when they surpass your expectation.

• Always use correct names and titles when addressing people.

• Always choose appropriate topics when sending mails or when communicating.

• Recognize people for good work

• listen to learn in order to be better

2.

• Be smart, cheerful and accurate at all times

• One has to be professional and courteous at all times

• Avoid small or irrelevant talk that can waste too many time hence causes delay in hitting the point of making the call

• Always end the call with a tactful cue without the receiver being offended

• Summarize the points of the call in order to be sure everyone is satisfied with the discussion.

• Plan an agenda to handle calls in-order to know what one has to discuss

3.

• When in a face to face conversation, be sure you pay utmost attention or avoid having divided attention

• One should learn how to lower his or her voice when making calls openly

• Receiving calls when you are already engaged in a face to face conversation is disrespectful hence should not be imbibed.

4 0
3 years ago
On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bondfor $1,000. The bond pays interest on January
Arturiano [62]

Answer:

Option (B) is correct.

Explanation:

Interest accrued for 6 months (January 1 to July 1):

= $1,000 × 6% × (6 ÷ 12)

= $30

This shall be credited to interest revenue as this is the income of the investor.

Sale value of investment:

= Bond selling price on July 1 + Interest accrued for 6 months

= $1,200 + $30

= $1,230

Gain on sale of investment:

= (Selling price - Purchase price) - Accrued interest

= ($1,230 - $1,000) - $30

= $200

Therefore, the Journal entry for this transaction is as follows:

Cash A/c                 Dr. $1,230

To debt investments                  $1,000

To Gain on sale of investment  $200

To Interest revenue                   $30

(To record the cash proceeds at the time the bond is sold)

7 0
3 years ago
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