Answer:
Increase by $5000
Explanation:
The United States Central Bank or the Federal Reserve (Fed) is responsible for controlling money supply in the United States as well as the activities of the commercial banks. This control can be carried out through a particular activity known as the Open Market Operations (OPO). This activity could be in form of buying or selling securities in the market.
According to the question, the 20% required reserve ratio means the banks are to maintain 20% of their total deposits. This means that a market purchase by the Fed of $1000 will increase the money supply by 5 times the amount bought by the Fed (20% is 1/5 of 100%).
The increase is calculated as $1,000 x 5 = $5,000
Answer:
increase the realized rate of economic growth.
Explanation:
When there is full employment in the economy and that the employment occurred with time then the growth rate of economy increase with the time taken to achieve the full employment.
Where people are earning and no single person who wants to work is unemployed and that each individual tends to earn, then the country will be at a pace of economic growth, that is increasing and realized in real terms.
It is real since it is actually achieved and measurable, along with the achievement of growth.
Answer:
D) Report a prior period adjustment decreasing retained earnings by $1,365,000
Explanation:
Accrual accounting rate-of-return method: In this method, the recording of the transactions should be done based on an accrual basis which means whether the amount is received or not but it is recorded in the books of accounts.
In the given case, there is an unrecorded liability for $2.1 million for prior year which is recorded after considering the tax expense. So, the computation is shown below:
= Unrecorded liability - unrecorded liability × tax rate
= $2,100,000 - $2,100,000 × 35%
= $2,100,000 - $735,000
= $1,365,000
Answer:
D
Explanation:
The other options are true regarding the requirements and objectives associated with IBR
