Answer:
The money multiplier of the economy is 20
Explanation:
Money multiplier is the term of economics which is defined as the maximum amount, the money supply could rise grounded on the increase in the reserve in the system of banking.
The formula used for computing the money multiplier is as:
Money Multiplier = 1 / r
where
r is the reserve ratio that is 5%
So, putting the same value above:
Money Multiplier = 1 / 5%
Money Multiplier = 20
Answer:
Explanation:
The journal entries are shown below:
a. Inventory A/c Dr $26,000
To Notes payable A/c $26,000
(Being inventory is purchased for signing the short term notes payable)
b. Interest expense A/c Dr $780
Notes payable A/c Dr $26,000
To Cash A/c $ $26,780
(Being cash is paid on maturity)
The interest expense is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $26,000 × 6% × (6 months ÷ 12 months)
= $780
The 6 months is calculated from March 1 to September 1
Answer:
B. $0.56
Explanation:
In this question, we use the high low method for calculation of variable cost per yard
The computation of the variable cost per yard is shown below:
= (High overhead costs - low overhead costs) ÷ (High yards processed - low yards processed)
= ($31,000 - $26,000) ÷ (35,000- 26,000)
= $5,000 ÷ 9,000
= $0.56 per unit
If the Fed conducts an open-market sale, bank reserves decrease, and the money supply is likely to decrease.
<h3>Open market operations</h3>
The Federal Reserve (the Fed) uses "open market operations" (OMO) to refer to the process of buying and selling U.S. Treasury securities as well as other securities on the open market in order to manage the amount of cash kept in reserve by U.S. banks. The Fed purchases and sells Treasury securities in order to increase the quantity of money in circulation and to decrease long-term interest rates.
The U.S. Federal Reserve uses open market operations to control the amount of money in circulation by buying and selling bonds and other securities. The Fed can utilize these transactions to increase or reduce the amount of money in the banking system and to raise or lower short-term interest rates, depending on the objectives of its monetary policy.
Learn more about open market operation here:
brainly.com/question/16260032
#SPJ4
Explanation:
Trả lời ngắn gọn thôi nhe ^^
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