Answer:
(A) The cash surplus can be used for a variety of purposes. In the short-term, they may replace their car, buy better furniture, or more quickly pay off their home. TRUE
(B)Alternatively, they may purchase stocks and bonds, or increase their savings for future needs. TRUE
(C) Investments in the stock market are generally designed to increase an individual's future wealth, the purchase of bonds typically allows one to at least retain their purchasing power, while investment in savings accounts provide liquidity. FALSE
Explanation:
(A) The currency can be used to anything he owner wants.
(B) Correct, the ecnomics always define that a person after receiving his income has only two option available. It can used in consumer goods. Or it can saved to invest
(C) The reason the stock and bonds exist is to raise fund for companys whichyield a return. The company takes the most benefit from this system as it would be difficult to convince a single peroson to invest a large amount in his business. Through sotck it can ask for fewer amount to more people but, this people will receive an income but it won't become rich for a couple shares.
As this part is not true, then the whole sentence must be catalogate as false.
Answer:
The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.
This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).
The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.
This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.
When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.
When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.
Explanation:
Answer:
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
Explanation:
Giving the following information:
Salary of factory supervisor $37,800
Heating and lighting costs for factory $22,900
Depreciation on factory equipment $5500
The company estimates that 2000 direct labor hours will be worked in the upcoming year.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (37,800 + 22,900 + 5,500) / 2,000
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
Answer:
Merchandise purchases budget explanations only.
Explanation:
Hi, your question has missing information, however i have supplied explanations below.
A purchases budget is required to determine the quantities of purchases required for :
- Resale - For Merchandisers
- Use in Production in case of Manufacturer
Here is the structure of the merchandise purchases budget for Walker Company (Merchandiser).
<u>Merchandise purchases budget </u>
Month
Budgeted Sales x
Add Budgeted Inventory x
Total Purchases needed x
Less Budgeted Opening Inventory (x)
Budgeted Purchases x
As stated by the question : <em>Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.</em>
<em>Ending Inventory = Next months` sales x required percentage</em>
Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.
