In the united states, the fractional reserve policy that governs commercial banking is controlled by the Federal Reserve. Fractional reserve is a part of customer deposit that cannot be channeled as a loan for a debtor.
<span>This policy made to maintain commercial bank's liquidity. Thus, it will not collapse when a customer withdraw some amount from the deposit</span>
Answer:
$6,000
Explanation:
Since this sale and the exercise of the options didn't occur in the same year, we must make an adjustment for AMT.
In calculating alternative minimum taxable income (AMT), a taxpayer must add or subtract amounts from regular taxable income due to the different treatment of certain tax items for AMT.
In the year 2019:
market price of the stock = $250
Liza acquired it at = $190,
Therefore,
Gain = (Acquired price - market price of the stock) × no. of shares
= ($250 - $190) × 100
= $60 × 100 shares
= $6,000
Liza needs to report this as income under AMT adjustments in 2019. This will be reported in for 6,251.
Answer:
Variable overhead efficiency variance= $558 favorable
Explanation:
Giving the following information:
Variable overhead 0.60 hours $ 3.10 per hour
Actual output 4,100 units
Actual direct labor-hours 2,280 hours
<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (0.6*4,100 - 2,280)*3.10
Variable overhead efficiency variance= $558 favorable
Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.
Answer:
About 250 ; 2000 bicycles
Explanation:
Opportunity cost simply means the loss incurred on a certain option when the alternative opruoonos chosen.
The opportunity cost of increasing shoe production from 10,000 to 20,000 pairs
The value of 20,000 (x axis) on the y axis is about 3750
Value of point A in the y - axis = 4000
Hence opportunity cost = (4000 - 3750) = 250 bicycles
B.)
The opportunity cost of increasing shoe production from 50,000 to 60,000 pairs
The value of 60,000 (x axis) on the y axis is about 0
Value of point B in the y - axis = 2000
Hence opportunity cost = (2000 - 0) = 2000 bicycles
