Answer:
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply <u>WILL NOT CHANGE</u>, but if the bank lends out some of the $100, the money supply <u>WILL INCREASE</u>.
Explanation:
Any monetary injection to the banking system will increase the money supply only if the banking system (the whole set of banks) lends the money. The total effect is calculated by the increase in money x the money multiplier. The money multiplier = 1 / required reserves.
If the bank does not lend the money, then the money supply will not change.
Answer:
A new president was hired and he found Chesterly out while reviewing the accounting records.
Answer:
Dr Miscellaneous expense $25
Cr Cash $25
Explanation:
With regards to the above, the $25 charged for a check printing fee, associated with their check in account is an expense, hence must be debited to miscellaneous expense account while the corresponding entry will be credited to cash account.
Hence journal entry would be;
Dr Miscellaneous expense $25
Cr Cash $25.
Answer:
Polish General Corporation is a new player in automobile production, their background for manufacturing automobile parts is an advantage as they can insource for parts.
The approach of giving ample time for trials is a good one. It will be a competitive advantage for the company if their products are synonymous with quality.
Their first product in the automobile market place should set a standard on which the company can build a long lasting brand.
So the decision by the manager to prolong trials is a wise one. The employees will also have mastered the process at the end of this period, having practices 60 - 100 times. Based on the expertise learnt products produced in the future will also have high quality.
Explanation:
