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Ahat [919]
3 years ago
7

Assume that you are interested in earning some return on the idle balances you usually keep in your checking account and decide

to buy some money market mutual funds shares by writing a check. Comment on the effect of your action (with everything else the same) on M1 and M2
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer:

By writing that check and investing in mutual funds, M1 will decrease, but M2 will remain the same.

Explanation:

M1 includes currency and coin, demand deposits, travelers' checks, check accounts, and negotiable order of withdrawal (NOW) accounts.

M2 includes all M1 + savings deposits, money market securities, mutual funds, and other time deposits.

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Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250).
Yanka [14]

Answer:

Ending Inventory  $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.  

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.  

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.  

Income Statement  

Sales revenue        $ 300,000  

Cost of goods sold  -$ 171,000  

Gross Profit            $ 129,000 43%

Beginning Inventory  $ 60,000

Purchases                  $ 175,000

Cost of goods sold  -$ 171,000

Ending Inventory    $ 64,000

7 0
3 years ago
A stress test in finical marketing means:_____.
Brilliant_brown [7]

Answer:

C.

Explanation:

Stress tests are carried out to determine how financial systems would react in periods of extreme stress eg. financial or economic crisis.

Stress situations are simulated and the reaction of the financial system to the stress is measured. Based on the reactions of the financial system, steps are taken to further improve or strengthen the financial system.

The scenarios used in a stress test can be based on historical events (events that have already occurred) or hypothetical events.

8 0
3 years ago
Traditionally, the federal reserve can give emergency loans only to select one:
jeyben [28]
The federal reserve is the central bank of the United States of America. It is considered as an independent bank because it does not need permission from the President to make transactions. Moreover, it does not benefit from the Congress' budget. The federal reserve only gives emergency loans to commercial banks during times of crisis to prevent bankruptcy. 
6 0
3 years ago
To find the annual rate of return on any given stock, add the stock's dividend for the year plus the change in the stock's price
katrin2010 [14]

Answer:

The statement is: True.

Explanation:

The Annual Rate of Return or Yearly Rate of Return is the amount earned over an investment within one year. It is typically represented as a percentage and takes into consideration capital appreciation and the payment of dividends. The formula to calculate the annual rate of return is the following:

Annual Rate of Return = (EYP - BYP)/BYP X 100%

Where:

EYP = End of year price

BYP = Beginning of year price

8 0
3 years ago
A basic objective of a CPA firm is to provide professional services that conform with professional standards. Reasonable assuran
Vsevolod [243]

It should be noted that basic objective of a CPA firm is to provide professional services, and this is done by system of quality control.

With the establishment of quality control policies as well as procedure, reasonable assurance can be provided.

<h3>What are objective of a CPA firm?</h3>

The objective of a CPA firm is to be in control of the system and regulate the system activities.

objective of a CPA firm at;

brainly.com/question/14175988

6 0
2 years ago
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