All categories

3 years ago

What are the relationship between household and commercial bank

Business

1 answer:

Sindrei [870]3 years ago

6 0

Does this help?

All commercial banks must keep an account with the Central Bank. These balances are used for cheque clearing purposes between banks. Payments for cheques between banks are set off at the Central Bank’s clearing house. The Central Bank can also demand commercial banks to deposit a certain percentage of their total deposits with the central bank in order to control the money supply.

The Central Bank is a lender of last resort and will aid commercial banks when needed. The Central Bank dictates the interest rate that commercial banks can offer by setting the bank rate. This is the interest rate set by the Central Bank and the rate at which commercial banks and the Central Bank do business, e.g. loans offered by the Central Bank to commercial bank.

You might be interested in

Green's preferred policy for addressing climate change is a shift to taxing greenhouse gas emissions. what does he describe as a

masha68 [24]

A benefit of this approach is that emission taxes would shift a part of revenue generation from consumption to production.

4 0

4 years ago

"Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $460,000. In addition to the purchase price, FVI makes the follow

Artyom0805 [142]

Answer:

Cost of land = $519,000

Explanation:

According to International Accounting Standards (IAS) 16, property plants and equipments, the cost of land includes all of the cost necessary to bring and make it ready for the intended use.

These costs include purchase cost, fees and commission associated with the purchase transaction.

Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.

Note that all the costs incurred by FVI as reported all fall into the above definition of cost of land.

Therefore the cost of the land would be

=460,000 + 26,000 + 1,600+ 5,400 + 26,000

= $519,000

5 0

3 years ago

Why is it important to prioritize a list of financial goals?

adell [148]

It’s important for your future. So you won’t be some kind of debts. It’s always better to plan rather than doing things last minute.

6 0

3 years ago

Mr. Slake sold 1,580 shares of publicly traded DDL stock (tax basis $49,240) for $40,000 cash on February 13. He paid $43,000 ca

Sav [38]

Answer:

$9,240 loss recognized

$43,000 basis

Explanation:

Tax basis of share purchase is the cost of share together with any tax related to this purchase.

Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share = $49,240 - $40,000 = $9,240

His tax basis in purchase of 1,600 shares on Mar 2 is $43,000, the total cost he paid to acquire 1,600 shares

8 0

3 years ago

Riker Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of

Alex Ar [27]

Answer:

Riker Corporation's Contribution Margin at 15,800 level of activity is $995,400 ($63 per unit) and Contribution Margin (%) is 42%

Explanation:

Contribution at Sales Volume of 15,800:

Sales Revenue (15,800 × $149) $2,354,200

Cost of Sales (Working 1) $(1,358,800)

Contribution Margin $995,400

Contribution Margin (per unit) $63

Contribution Margin (%) 42%

Working 1

Sales Volume (Units) 14,800 16,310

Cost of Sales ($) $1,272,800 $1,402,660

Cost of Sales per unit $86 $86

(Cost of Sales ÷ Sales Volume)

*Figures in brackets represent negative figures

6 0

3 years ago