Answer:
12.5%
Explanation:
The computation of the reserve requirement is shown below:
We know that
Total reserves = New reserve requirement × transaction deposits
$100 billion = New reserve requirement × $800 billion
So, the New reserve requirement would be
= $100 billion ÷ $800 billion
= 0.125 or 12.5%
All other information which is given is not relevant. Hence, ignored it
Answer:
A. True
Explanation:
The line credit is a loan in which the limit is set by the bank. It can be in formal or an informal agreement which is done between the financial institution and borrower.
In this, the time period is mentioned at which the borrower returned back the money also the borrower paid the interest to the bank it also maintained the financial position of the borrower
Hence, the given statement is true
Answer:
Petty Cash
Explanation:
The fundamental principle of accounting is credit the giver and debit the receiver. In this instance petty cash is giving out money to Office Supplies, Shipping, Postage and Delivery expense
??? C ???
whats the question here
Answer:
a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.
b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.
Explanation:
a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.
There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.
b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.
