Answer:
$7,500,000
Explanation:
Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of $7,500,000 in demand deposits
From the stated assumptions in the question,we will use the money multiplier to calculate the eventual effect of the $1,500,000 injection into the money supply.
Money multiplier can be calculated using this formula 1/r (r is the required reserve ratio)
Therefore, the resulting change in demand deposits is as follows:
Change in Demand Deposits = Change in Fresh Reserves ×1/r
= $1,500,000×1/0.20
= $7,500,000
Answer:
The international monetary fund.
Explanation:
The international monetary fund is made up of 189 countries around the world that foster global monetary cooperation, promote high employment, secure financial stability, facilities international trade, and reduce poverty. It periodically depends on the World Bank for funding.
Countries that are having problems with balance of payment can borrow money from IMF pool of resources.
In this scenario country B is unable to pay for goods bought from country A till it makes export. There is a problem of balance of trade. The IMF can help country B make the payment by borrowing it funds.
Answer and Explanation:
The Journal entry is shown below:-
On August 2
Stock dividend Dr, $67,320 ($33,000 × 3% × $68)
To Stock dividend distributable $49,500 ($33,000 × 3% × $50)
To Paid in capital in excess of par - common stock $17,820
(Being stock dividend is recorded)
On September 15
No Journal entry is required
On October 8
Stock dividend distributable Dr, $49,500
To Common stock $49,500
(Being stock dividend is recorded)
Answer:
His total economic profit for the year was –$1,000. The right answer is b.
Explanation:
In order to calculate the total economic profit for the year, we have to use the following formula:
Total economic profit = total revenue - total explicit cost - implicit cost =
Acording to the data:
Total Revenue=$100,000
Total explicit cost= ($3,000×12)+($2,000×12)+($500×12)=$ 66,000
implicit cost= $ 35,000
Hence, Total economic profit= $100,000 - $66,000 - $35,000 = -$1,000
I think the answer to this question is B
