Answer:
4
Explanation:
A bank holds 450,000 in required reserves
The bank also hold 1,800,000 in total deposits
Therefore the deposits expansion multiplier can be calculated as follows
= 1,800,000/450,000
= 4
Hence the deposits expansion multiplier is 4
Answer:
the dividends in arrears = $2,800,000
the total dividend that must be paid this year = $5,600,000
Explanation:
<u>the dividends in arrears</u>
Last Year = 200,000 shares × $200 × 7%
= $2,800,000
<u>total dividend that must be paid this year</u>
<em>Note : The Preference Shares are cumulative meaning that arrears in dividends are accumulated to be paid at a future date</em>
Last Year`s Dividend $2,800,000
<em>Add </em>This Year`s Dividend $2,800,000
Total $5,600,000
When the Federal Reserve sells treasury bonds to a bank, the money supply is decreased. Since there are smaller available funds for the bank to loan (they have tied up some cash by buying the bonds), the interest rate the bank charges (all other things EQUAL!) will increase.
Basically, what has happened is that the bank has lent money to the federal government, rather than to other lenders. So if it has no other sources of lendable funds AND borrowers don't have other banks to go to that are charging the current rate, the same number of borrowers competing for a smaller amount of borrowable funds will lead to a higher price, (interest rate) for those loans.
Answer:
It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy. This is because Plain, generated more contribution per hour than Fancy.
Explanation:
We have to calculate the Contribution Margin per machine hours
This means check which product makes a better use of the scarse resourse
It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy
Answer:
$50,000
Explanation:
The computation of the interest expense for deduction is shown below:
= Interest on a mortgage on his home + Interest on a mortgage on his vacation home
= $40,000 + $10,000
= $50,000
All other information which is given in the question is not relevant for the computation part. Hence, ignored it
We simply add both types of interest related to a mortgage on the home
