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AlexFokin [52]
3 years ago
10

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve rat

io = 0.20, excess reserves prior to the currency deposit = $0. The $40 billion deposit of currency into checking accounts will create excess reserves of
Business
1 answer:
Vlada [557]3 years ago
3 0

Answer:

The bank will create excess reserve of $200 billion

Explanation:

The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.

Money multiplier              =   1 /Legal Reserve Ratio  = 1/0.2 = 5

Excess Reserve Created = A x (1 /Legal Reserve Ratio)

Where:                          A  = New currency deposit =  $40

       Legal Reserve Ratio = 0.20      

                                     

Excess Reserve Created = $40 x (1/0.2)  =  $40 x 5 =  $200 billion                                          

The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.

The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.

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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations
DochEvi [55]

Answer:

c) $ 24,200

Explanation:

Computation of Total Period costs

Fixed selling and Administrative expenses                       $  8,800

Variable Selling and Administrative costs

$ 7 per unit * 2,200 units sold                                            <u>$ 15,400</u>

Total period costs                                                                $ 24,200    

The fixed manufacturing overhead is part of manufacturing costs so not considered.

The variable selling and administrative costs are based on units sold and not units produced.

5 0
3 years ago
Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $84,000. However, the bu
joja [24]

Answer:

$32,000

Explanation:

Calculation for the balance of Maxwell's Capital account

Using this formula

Assets =Liabilities-Owner's Equity

Where,

Liabilities =$84,000

Owner's Equity=$52,000

Let plug in the formula

Assets =$32,000

Therefore the balance of Maxwell's Capital account will be $32,000

5 0
2 years ago
Which of these bottled water brands is produced by the makers of coca-cola?
katovenus [111]
The answer to this question is <span>DASANI
the makers of coca cola was interested in entering bottled water brands after seeing the success of Aquafina (which was produced by coca cola's rival)
</span><span> between May 2014 and 2015  alone, DASANI managed to achieve impressive sales of 1.05 Billion dollar</span>
8 0
3 years ago
Two terms for the connective tissue below the dermis are _______. It is made of _______ and its functions include _______.
qaws [65]

Answer:

The correct answer are: Hypodermis and subcutaneous layer; areolar and adipose tissue; stabilizing position of the skin.

Explanation:

- The hypodermis, also called subcutaneous tissue, or superficial fascia, is the lowest layer of the integumentary system in vertebrates. The types of cells found in the hypodermis are fibroblasts, fat cells and macrophages. It derives from the mesoderm, but unlike the dermis, it does not derive from the dermatome in the region of the mesoderm. The hypodermis is mainly used to store fat.

- Areolar connective tissue: It is one of the most widely distributed. It contains cell types such as fibroblasts, macrophages, plasma cells, mast cells and white blood cells. It consists of collagen, elastic and reticular fibers. The main substances it contains are hyaluronic acid, chondroitin sulfate. This type of tissue is part of the subcutaneous tissue.

- Adipose tissue: It is composed of a cell type called adipocira that store triglycerides. It is associated with areolar tissue. It acts as an insulator to prevent heat loss. It is the main source of energy and provides support and protection to various organs.

6 0
3 years ago
Melissa recently paid $610 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also
zavuch27 [327]

Answer:

A. $2,325

B. $2,325

C. $0; $1,715

D. $598.5

Explanation:

A. Calculation to determine the amount of the travel costs can Melissa deduct as business expenses

Round trip airfare $610

Conference registration fees $385

3 nights lodging $1,005

($335*3)

Meals $150

(300*50%)

Cab fare $175

Total deduction $2,325

Therefore the amount of the travel costs can Melissa deduct as business expenses will be $2,325

b. Calculation to determine What amount of the travel costs can Melissa deduct as business expenses

Based on the information given the amount of the TRAVEL COSTS that Melissa can deduct as BUSINESS EXPENSES will still be $2,325.

Round trip airfare $610

Conference registration fees $385

3 nights lodging $1,005

($335*3)

Meals $150

(300*50%)

Cab fare $175

Total deduction $2,325

c. Calculation to determine What amount of the airfare can Melissa deduct as a business expense

Based on the information given Airfare will NOT BE DEDUCTIBLE

Hence;

Total Airfare deductible = $0

Total expenses deductible = $2,325 - $610

Total expenses deductible = $1,715

d. Calculation to determine the amount of the travel costs can Melissa deduct as business expense

Registration fee $385

Mileage $43.5

($75*0.58)

Parking $170

Total deductible $598.5

Therefore the amount of the travel costs that Melissa can deduct as business expense is $598.5

3 0
2 years ago
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