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BlackZzzverrR [31]
3 years ago
13

1. Suppose Bank One offers a risk-free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk-free interest

rate of 6% on both savings and loans. a. What arbitrage opportunity is available? b. Which bank would experience a surge in the demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering?
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer:

Explanation:

A. Take a loan from Bank One at 5.5% and save the money in Bank Enn at 6%.

B. Bank One would experience a surge in the demand for loans, while Bank Enn would receive a

surge in deposits.

C. Bank One would increase the interest rate, and/or Bank Enn would decrease its rate.

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A check list should be based on past____?
Jet001 [13]
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3 years ago
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The W. J. Clinton Company issued 750 shares of $1 stated value common stock in exchange for land from the Whitewater Investment
MrMuchimi

Explanation:

The journal entry is as follows:

Land  Dr $70,000

Additional paid in capital  $5,000

             To Common stock $75,000

(Being the common stock is issued in exchanged for cash)

The computation of the additional paid in capital is shown below:

= Common stock - the appraised value of land

where,

The common stock = 750 shares × $100 = $75,000

And, the  appraised value of land is $70,000

So, the remaining balance is

= $75,000 - $70,000

= $5,000

The $5,000 would be recorded as an additional paid in capital

4 0
3 years ago
What is a mortgage?
Anvisha [2.4K]
The answer is a loan (or b)
8 0
3 years ago
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Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items
OLEGan [10]

a. The average aggregate inventory value is <em>$336,000.</em>

b. The number of weeks of supply that the firm has is <em>3 weeks</em>, approximately (2.69 ($336,000/$6,500,000 x 52).

c. The inventory turnover of Sapphire Aerospace for last year was<em> 19.3x.</em>

<u>Question Completion</u>:

Category        Part Number        Average           Value        Total      Category

                                              Inventory Units    per Unit      Value        Totals

Raw Materials      RM-1                20,000               $1        $20,000

Materials             RM-2                 5,000                 5          25,000

                            RM-3                 3,000                 6           18,000

                            RM-4                  1,000                 8            8,000      $71,000

Work-in-process WIP-1                 6,000                10         60,000

                            WIP-2               8,000                 12         96,000   $156,000

Finished goods   FG-1                  1,000                65         65,000

                            FG-2                   500                88         44,000   $109,000

Total value of inventory                                               $336,000  $336,000

Inventory turnover = Cost of goods sold/Average inventory

= 19.3x ($6,500,000/$336,000)

Thus, the average inventory value is $336,000, while the inventory turnover was 19.3x.

Learn more about inventory turnover here: brainly.com/question/5701250

3 0
3 years ago
Lantz Company has provided the following information: • Cash sales totaled $255,000. • Credit sales totaled $479,000. • Cash col
NNADVOKAT [17]

Answer:

The amount of Lantz's operating revenue is $734,000

Explanation:

The computation of the operating revenue is shown below:

= Total cash sales + Total credit sales

= $255,000 + $479,000

= $734,000

Since we have to compute the operating revenue, so we considered only revenue part not expenses part

The other information which is mentioned in the question is not being considered because it is related to the operating expenses. So, ignored it.

3 0
3 years ago
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