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nexus9112 [7]
3 years ago
13

The Bank of Key West is not going to have enough reserves at the end of the business day to meet its reserve requirement of 10%.

It currently has two options to borrow money overnight in order to meet the requirement. First, it could borrow money from the Federal Reserve at a rate of 1.15%. Second, it could borrows money from the other banks at a rate of 0.35%. Using this information answer the following questions.
1. What is the federal funds rate?
Number: _____%

2. What is the discount rate?
Number: _____%
Business
1 answer:
kipiarov [429]3 years ago
5 0

Answer:

1. 0.35%

2. 1.15%

Explanation:

The federal funds rate is the rate at which a bank can borrow funds from other depository institutions such as other banks and credit unions for overnight without collaterals. It is a very short term interest rate.  

Discount rate at which the federal reserve system provides funds to commercial banks at the discount window. The federal reserve can control the money supply by changing the discount rate.  

Here, in the given example, the federal reserve rate is 0.35%, as it is the rate at which the bank can borrow from other banks. While the discount rate is 1.15%, as this is the rate at which banks can borrow from the federal reserve.

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The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT______________.a. ski
kotykmax [81]

Answer:

D. Altering financial statement

Explanation:

4 0
3 years ago
Frasquita acquired equipment from the manufacturer on 6/30/2021 and gave a noninterest-bearing note in exchange. Frasquita is ob
Sladkaya [172]

Answer:

$525,000

Explanation:

Calculation to determine what amount would it have recorded the equipment for on 6/30/2021

First step is to calculate the total interest for 10 months;

Based on the information given since the amount of $15,000 was the interest for 6 months in the year 2021 in which the note lasted for 10 months the total interest will be:

Total Interest = 10months/6months x $15,000 Total Interest=$25,000

Now let calculate 6/30/2021 Equipment

6/30/2021 Equipment=$550,000-$25,000

6/30/2021 Equipment=$525,000

Therefore what amount would it have recorded the equipment for on 6/30/2021 is $525,000

3 0
2 years ago
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
laiz [17]

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in Units

April 54,000

May 75,000

June 94,000

July 82,000

Desired ending inventory= 20% of the following month’s sales.

The inventory at the end of March was 10,800 units.

<u>To calculate the production for each month, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

<u>April:</u>

Sales= 54,000

Ending inventory= 75,000*0.2= 15,000

Beginning inventory= (10,800)

Total= 58,200 units

<u>May:</u>

Sales= 75,000

Ending inventory= 94,000*0.2= 18,800

Beginning inventory= (15,000)

Total= 78,800 units

<u>June:</u>

Sales= 94,000

Ending inventory= 82,000*0.2= 16,400

Beginning inventory= (18,800)

Total= 91,600 units

Total for the quarter= 228,600 units

4 0
3 years ago
At green acres fencing company, eight employees each perform various aspects of the company's work. one person does sales, four
miss Akunina [59]
<span>The fact that the Green Acres Fencing company differentiate the jobs and aspects of the company's work of the employees means that this type of organization reflects Fayol's principle of division of labor. The term division of labor means </span><span>the separation of a work process into a number of tasks</span>
8 0
3 years ago
Read 2 more answers
Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that freque
algol13

Price ceiling are measure employed by government to help the consumers by mandating a maximum price that the seller must charge for a product or service.

  • The measure of imposing price in market are rare but are notably used during natural disasters.

  • Price ceiling helps to prevent the producers from exploiting the consumers.

In conclusion, the major disadvantage of price ceiling is that when a price ceiling is set below the equilibrium price, the quantity demanded will exceed quantity supplied, thus, this will result to excess demand of goods and shortage in the market.

Learn more about Price ceiling here

<em>brainly.com/question/8868002</em>

7 0
3 years ago
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