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grigory [225]
3 years ago
5

If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank

reservesA) increase by $10 million and the money supply could eventually increase by $10 million.B) decrease by $10 million and the money supply could eventually decrease by $100 million.C) increase by $10 million and the money supply could eventually increase by $100 million.D) decrease by $10 million and the money supply could eventually decrease by $10 million
Business
1 answer:
bogdanovich [222]3 years ago
5 0

Answer:

Option (C) is correct.

Explanation:

Given that,

Reserve ratio = 10%

Fed purchases government bonds = $10 million

The money multiplier:

= 1 ÷ reserve ratio

= 1 ÷ 0.10

= 10.

Increase in Money supply:

= Multiplier × Government purchases

= 10 × 10

= 100.

Therefore, the bank reserves increase by $10 million and the money supply could eventually increase by $100 million.

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Harry owes the bank money. To repay his debt, he paid \$150$150dollar sign, 150 back to the bank each month. After 101010 months
Firdavs [7]

Answer: $8,400

Explanation:

Given the following:

Amount repaid each month = $150

Number of Periods for which amount was paid = 10 months

Amount left after 10 months payment = $6900

Harry's original debt=?

The total amount paid = $150 × 10 = $1500

Amount left = $6900

Total debt amount:

(Total Amount left + total amount paid )

$(6900 + 1500)

=$8400

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3 years ago
interest in sustainability initiatives has increased in recent years. group of answer choices true false
Marrrta [24]

Interest in sustainability initiatives has increased in recent years, is a true statement.

<h3>What is sustainability?</h3>

Sustainability can be defined as using resources in a way that is available for the current generation as well as the future generations.This also means that the resources will not be depleted in the future.

The people are making sure that they use the resources in a more careful and efficient manner and do not waste any resources or pollute the environment.

There are various organizations like WTO that help spread awareness of this initiative.

Learn more about sustainability, here:

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5 0
1 year ago
What are the pros and cons of putting your money into your superannuation?
almond37 [142]
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2 years ago
Orr Co. prepared an aging of its accounts receivable at December 31 and determined that the net realizable value of the receivab
lyudmila [28]
  • With all these entries registered the final balance of the Allowance for Uncollectible Accounts  it's as follows:

Answer:

  • For the year ended December 31, Orr’s uncollectible accounts expense is

Cr Allowance for Uncollectible Accounts  $ 10.000

Explanation:

  • The initial balance of the account was as follows:

Cr Allowance for Uncollectible Accounts  $ 28.000

  • Accounts written off as uncollectible during the year 23,000 , it means that part of the balance of the account, "Allowance for Uncollectible Accounts" was used to record the written-off accounts, this movement had a negative impact in the Accounts Receivable.

Dr Allowance for Uncollectible Accounts $ 23.000  

Cr Accounts Receivable                    $ 23.000

  • During the year, the company recovered part of the canceled accounts, which means that part of that amount was collected, so it is necessary to reverse the previously registered entry.

Dr Accounts Receivable                                $ 5.000  

Cr Allowance for Uncollectible Accounts  $ 5.000

  • With all these entries registered, the final balance of the Allowance for Uncollectible Accounts  is as follows as credit balance:

Cr Allowance for Uncollectible Accounts  $ 10.000

Accounts Uncollectible are those credit that the company give and there are not chances of been collected.

When the customers buy products on credits but then the company can't collect the debt, then it's necessary  to write off the unpaid bill as uncollectible .

One way it's to write-off directly the bad debts at the moment decided that the credit are uncollectible, the total amount  it's reported as bad debt expenses which affect negativly the income statement and the accounts receivable are reduced in the same amount, less assets.

The other way it's to determine a percentage of total amount of accounts receivables as uncollectible, exist many ways to analize the accounts receivable and figure the value of uncollectible.

When the company have the percentage of uncollectible accounts the journal entry required is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the moment of the write-off as the expenses were before recognized we only use the Allowance for Uncollectible Accounts (Debit) with Accounts Receivable (Credit), with this we are recognizing the uncollectible credit of the company.

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LiRa [457]
Dzongkha is the language Bhutan use
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