The value of a bank's assets is than its liabilities, the bank is said to be <u>solvent</u>
<h3>What is assets?</h3>
Any resource that a company, an organization, or an economic body owns or controls is considered an asset. It encompasses everything that has the potential to generate gains in the economy. When turned into money, assets indicate the worth of ownership.
<h3>What do you mean by solvent in accounting?</h3>
A company's capacity to fulfill its short-term and long-term financial commitments is known as its solvency. One indicator of a company's financial health is its level of solvency, which reveals whether it will be able to continue running its business into the near future. Ratio analysis is a tool investors can use to assess a company's solvency.
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Answer:
The answer is How.
Explanation:
When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.
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Answer:
With a 10% required reserve ratio, the money supply could increase by $500,000/r when the loan is made.
This equals $5,000,000 ($500,000/0.1) where r = 10%
Explanation:
a) The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.
b) The formula for the money multiplier is simply 1/r, where r = the reserve ratio.
c) The reserve ratio, also known as Cash Reserve Ratio, is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. It is used by the central bank to control the supply of money in the economy. When the central bank wants to increase the money supply, it lowers the reserve ratio and vice versa.
d) According to wikipedia.com, "the money supply is the total value of money available in an economy at a point of time." It is usually defined as currency in circulation plus demand deposits. It is the demand deposits that give commercial banks the ability to create money using the reserve ratio.
Answer: Only Material costs are relevant
Explanation:
The material cost under alternative X is given as $41000 while under alternative Y is given as $59000.
The processing cost under alternative X is given as $45000 while under alternative Y, the processing cost is given as $45000 as well.
Then, we can deduce that only the materials costs are relevant since the processing costs are thesame.
Answer:
C. The site focuses on testimonials from people who recommend the product.
