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4 years ago

When the Fed raises the required reserve ratio, the excess reserves available in the banking system: Group of answer choices

Business

1 answer:

deff fn [24]4 years ago

7 0

Answer:

are decreased

Explanation:

the reserve ratio is the reserve requirement on commercial banks to deposit a percentage of their deposit liabilities to the Central Bank so as not to lend or invest all of them. Therefore when reserve ratio is increased, excess reserves available to banks decrease as they are required to keep more funds with the Central Bank. In the US, the Federal Reserve is in charge of setting the reserve ratio which is specified in Regulation D

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______ allows you to earn money while caring for your own children.

aleksley [76]

A family day care allows you to make money while caring for your own children

7 0

3 years ago

Read 2 more answers

Carson Packaging Corporation began business in 2018 by issuing 30,000 shares of $3 par common stock for $8 per share and 12,000

Sloan [31]

Answer:

The correct option is C, common stock of $90,000

Explanation:

The cash proceeds from the issue of common stock are $240,000.00 (30,000*$8).

The amount is further broken down into common stock of $90,000 ($3*30,000) and $150,000 ($240,000-$90,000) in paid-in capital in excess of par value as at the time of the stock issuance.

The correct option as a result of the analysis above is C, common stock of $90,000

8 0

4 years ago

A closed economy a. does not engage in international trade of goods and services. b. does not engage in international borrowing

Vinvika [58]

Answer:

The correct option is C,both A and B

Explanation:

A closed economy is not opened to the idea of international trade, where its surplus commodities can be traded with other nations of the world in order to earn foreign exchange while at the same procuring from trading partners products required by its nationals not available at all in the economy or the ones that are not available in the required quantity.

A closed economy also assumes itself to be sufficient in the area of fiscal policy management by not engaging in international borrowing or lending arrangements.

5 0

3 years ago

Cullumber Co. receives $343,800 when it issues a $343,800, 10%, mortgage note payable to finance the construction of a building

Katyanochek1 [597]

Answer:

See the journal entries below.

Explanation:

The journal entries will look as follows:

Date Description Debit ($) Credit ($)

31 Dec 20 Cash 343,800

Mortgage note payable 343,800

(To record the issue of mortgage note.)

31 Dec 21 Interest expense (w.1) 34,380

Mortgage note payable (w.2) 22,920

Cash 57,300

(To record the first annual installment on Mortgage note.)

31 Dec 22 Interest expense (w.4) 32,088

Mortgage note payable (w.5) 25,212

Cash 57,300

(To record the second annual installment on Mortgage note.)

Workings:

w.1. Interest expense on December 31, 2021 = Mortgage loan amount * Interest rate = $343,800 * 10% = $34,380

w.2. Principal paid on December 31, 2021 = Annual installment payments - Interest expense on December 31, 2021 = $57,300 - $34,380 = $22,920

w.3 Mortgage loan balance on December 31, 2021 = Mortgage loan amount - Principal paid on December 31, 2021 = $343,800 - $22,920 = $320,880

w.4. Interest expense on December 31, 2022 = Mortgage loan balance on December 31, 2021 * Interest rate = $320,880 * 10% = $32,088

w.5. Principal paid on December 31, 2022 = Annual installment payments - Interest expense on December 31, 2022 = $57,300 - $32,088 = $25,212

6 0

3 years ago

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of a(n):_______

Lorico [155]

Answer:

d. acquisition

Explanation:

Acquisition can be defined as the process in which a company or business firm purchases all of another company so as to build on its weaknesses or strengths.

This ultimately implies that, after the acquisition of a company's shares or all of the company, the acquiring (purchasing) company gains a total control of the acquired company and as a result it is saddled with the responsibility of controlling, maintaining, managing and financing of the company.

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of an acquisition.

4 0

3 years ago