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3 years ago

The most recently-introduced tool of monetary policy is the:

Business

1 answer:

Marina86 [1]3 years ago

5 0

The most recently-introduced tool of monetary policy is the interest on reserves.

To add, interest on reserves (IOR) is the rate at which the Federal Reserve Banks pay interest on reserve balances, which are balances held by DIs at their local Reserve Banks.

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You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and

ycow [4]

Answer: $20,000

Explanation:

The reserve requirement is a central bank regulation which sets minimum amount of reserves which must be held by a commercial bank.

When reserve requirement = 20%

= 20/100

= 0.20

Total increase in the checkable deposit will be = $4,000 / 0.20= $20,000

5 0

3 years ago

Homer has decided to buy a trampoline. the trampoline costs $2000.00. he borrows the money from the springfield bank at an inter

Elodia [21]

Finance Charge = Balance x Interest rates

Since Philip has passed the full year since the initial credit, we use the full 19% for the calculation.

So, the finance charge is:

$ 2,000 x 19%

= $ 380

6 0

4 years ago

The following information was taken from the financial statements of Fox Resources for December 31 of the current fiscal year: C

WINSTONCH [101]

Answer:

Fox Resources

Units of common stock in issue = $5,000,000 divided $20 = 250,000 units

A. Earnings per share = Net income (after deducting preferred stock interest) divided by number of outstanding shares in issue

We assume the Net income provided already has deducted interest on preferred stock

= 600,000/250,000

= $2.4

B. Price Earning Ratio

= share price divided by the Earnings per share

= 20/2.4

= 8.33

C. Dividend Per share

= Dividend paid divided by number of common stock issued & outstanding

= $125,000/250,000

= $0.50

6 0

3 years ago

only deposits of a rare and sought-after mineral known as Yuksporite are found in ussia. Since no other nation has deposits of Y

mash [69]

Answer:

D. Absolute Advantage

Explanation:

Absolute advantage represents an economics principle referring to the capability of a firm or a country or even an individual to manufacture or produce a larger quantity of a product or offer a greater quantity of a service than its competitors especially with the same amount of resource which in in reference to international trade is labour.

The absolute advantage for Russia in the question is that it has the only deposits of Yuksporite and using the same amount of labour input other countries would have used, Russia has the absolute advantage as the only manufacturer of goods that would come out of Yuksporite.

4 0

4 years ago

Read 2 more answers

Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7]Menlo Company

bonufazy [111]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales= $640,000 ($40)

Variable expenses= 448,000 (28)

Contribution margin= 192,000 ($12)

Fixed expenses= (145,200)

Net operating income=$46,800

1) To calculate the break-even point in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 145,200/(40-28)

Break-even point in units= 12,100 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 145,200/ (12/40)

Break-even point (dollars)= $484,000

2) The break-even point is the number of units to sell to reach a net profit of cero. Therefore, the contribution margin must be equal to the fixed costs.

Contribution margin= 145,200

3) profit= $75,600

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

Break-even point in units= 220,800/12

Break-even point in units= 18,400 units

Sales= 18,400*40= 736,000

Total variable costs= 18,400*28= (515,200)

Contribution margin= 220,800

Fixed costs= 145,200

Net profit= 75,600

4) The margin of safety:

Margin of safety= (current sales level - break-even point)

Margin of safety= 640,000 - 484,000= $156,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 156,000/640,000

Margin of safety ratio= 0.244= 24.4%

5) Contribution margin ratio= 12/40= 0.3

Net increase= 96,000*0.3= $28,800

5 0

3 years ago