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.
Answer:
I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is highly influenced by market speculation, if it wants to increase production to take advantage of the current profit-maximizing opportunity, the company must accept market price for its physical capital input.
Explanation:
Actually, the market of gold is very speculative and in general a "gold mines" has to accept market prices because they can't influence in them as in the case of I'maGoldMiner because it represents a small part of the market.
Answer:
A : decreasing its variable costs by at least 15%
Explanation:
Variable costs depend on the number of passengers they transport as there will be a decrease of the 15 %in the income received by each passenger. Then, it must be an equal reduction on the expenses generated by each passenger in order to remain competitive.
Answer:
Do the math don't be lazy
Explanation:
SHOW WORK
Answer:
Marjam's entry to record this transaction should include a c. Credit to Long-Term investments for $63,600.
Explanation:
Marjam investment in MacKenzie is a Financial Asset. A financial Asset is an obligation to receive cash.
Marjam will be paid a cash dividend based on the share of ownership it has in MacKenzie.
Share of Ownership = 63,600 shares/ 120,000 outstanding shares
= 53%
<u>Marjam's entry to record cash dividends is as follows </u>
Dividend = $120,000 × 53%
= $63,600
Debit : Bank $63,600
Credit : Long-Term investments $63,600
