Answer:
RECEIPT
Explanation:
Receipt is an evidence of making the payment on account of any business transaction. This source document is prepared for showing the proof of giving any cash to the party (who receives the cash) on account of any business transaction.
Answer:
$100,000
Explanation:
The total amount of loans the banking system can make = total reserves available / reserve requirement = $5,000 / 5% = $100,000
Banks have the ability to create money, since they can lend money to a client, and if that client leaves the money on the bank in a checking account, the bank can lend it again, and the circle goes on and on. This creation of money results from the money multiplier. Money multiplier = 1 / reserve requirement = 1 / 5% = 20
Answer: delaying collection of foreign currency receivables if that currency is expected to appreciate
Explanation:
A lag strategy involves the delay in collecting foreign currency receivables when an economic agent like the individuals, firms or the government believes that the currency will appreciate.
A lag strategy also involves the delay in payables when one is aware that the currency will soon depreciate.
Answer:
This is an example of a
b. an ordinary annuity.
Explanation:
Aaron's cash inflows of $7,500, which he receives at the end of the year, is an ordinary annuity because it comprises a series of equal payments receipts received over a fixed length of time, and it occurs at the end of the year. If Aaron receives the series of payments at the beginning of each period and not at the end, it will be described as an annuity due. If Aaron receives the series of payment indefinitely, it is called a perpetuity.