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3 years ago

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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

1 answer:

lianna [129]3 years ago

3 0

Answer:

Money supply increase=500000/10%=5000000

Explanation:

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___ should not be included on the resume

morpeh [17]

Probably white space because you want it to be full of information and organized

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2 years ago

Read 2 more answers

A new machine costing $1,800,000 cash and estimated to have a $60,000 salvage value was purchased on January 1. The machine is e

vredina [299]

Answer:

Results are below.

Explanation:

Giving the following formula:

Purchase price= $1,800,000

Salvage value= $60,000

Useful life= 8 years or 600,000 units

<u>To calculate the annual depreciation using the units-of-production method, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(1,800,000 - 60,000) / 600,000]*70,000

Annual depreciation= $203,000

<u>To calculate the annual depreciation using the double-declining balance, we need to use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(1,800,000 - 60,000) / 8]

Annual depreciation= $435,000

<u>Finally, the annual depreciation using the straight-line method:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (1,800,000 - 60,000) / 8

Annual depreciation= $217,500

6 0

2 years ago

Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2020, Vito borrowed $8,000 from V

otez555 [7]

Answer:

The first loan for $8,000 could fall under the exemption of employer-employee loan. But then after the second is taken, that exemption would no longer apply. A minimum interest of $18,000 x 4% x 6/12 = $360 should be charged.

If the loan is considered a corporation-shareholder loan, then it doesn't qualify for any type of exemption, resulting in interests = ($8,000 x 4% x 6/12) = $160 for 2020

for 2021, interest applied = [($8,000 + $160) x 4%] + ($10,000 x 4% x 6/12) = $326.40 + $360 = $686.40

3 0

2 years ago

Leasing allows business owners to forecast cash flows more ________ because lease payments are ________ amounts paid over a part

Pie

Leasing allows business owners to forecast cash flows more ACCURATELY, because lease payment are FIXED amount paid over a particular time period.
Leasing involves paying a specified amount of money monthly or yearly for use of a particular landed property. Leasing fees are usually fixed in amount and this allows one to accurately calculate how much money one can expect from this source of revenue.

3 0

2 years ago

Mike is driving over to his girlfriend's apartment and decides to buy some gum. He could stop in a gas station, go to any grocer

stepan [7]

Answer:

Intensive.

Explanation:

In this scenario, Mike is driving over to his girlfriend's apartment and decides to buy some gum. He could stop in a gas station, go to any grocery store, go to any discount store, or even buy some out of a vending machine. The reason Mike has so many options to buy gum is because chewing gum companies strive for intensive channel coverage.

An intensive channel coverage is a sales method which is typically focused on providing varieties of sales outlets or channels for customers to buy their desired products.

Companies operating under the intensive channel coverage, are usually aimed at saturating the market with their products, by using all available sales outlets.

<em>Hence, Mike had so many outlets where he could buy gum from because chewing gum companies strive for intensive channel coverage in order to reach out to potential customers. Other examples of companies that use the intensive coverage channel are cigarette, beer etc. </em>

5 0

3 years ago