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Sergeu [11.5K]
3 years ago
9

What is the principle of indemnity? Why is this principle important?

Business
1 answer:
dexar [7]3 years ago
8 0

This principle states to compensate the insured organization or private individual so that their financial position is not affected by the loss. This principle means that someone seeking to take out insurance should not be able to earn a profit from the loss incurred. Example; an office fire ruins computers and therefore the insurance company would compensate only for the value of the equipment and they would not buy a brand new computer as this would mean that the insured individual or business has profited from the fire caused.

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1. What are reserves held by banks?
Paraphin [41]

Answer:

This is what I found!

Explanation:

Bank reserves are the cash minimums that must be kept on hand by financial institutions in order to meet central bank requirements. The bank cannot lend the money but must keep it in the vault, on-site or at the central bank, in order to meet any large and unexpected demand for withdrawals.

7 0
3 years ago
Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
What is the amount of money you still owe to their credit card company called
aleksandr82 [10.1K]
Hello there.

What is the amount of money you still owe to their credit card company called

Credit card balance
is the amount of money you still owe to their credit card company
6 0
3 years ago
Here is the ledger for Blossom Company.
Alex777 [14]

Answer:

1/Oct : Cash (Dr.) $8,660

Accounts Receivable (Cr.) $8,660

10/Oct : Equipment & Supplies (Dr.) $9,660

Notes Payable (Cr.) $9,660

20/Oct : Accounts Receivable (Dr.) $2,640

Service Revenue (Cr.) $2,640

Explanation:

Debits $16,960

Cash 6,600

Accounts Receivable 1,840

Supplies 1,840

Equipment 4,660

Dividend 2,020

Credits : $16960

Accounts Payable 4,660

Notes Payable 9,660

Service Revenue 2,640

3 0
3 years ago
If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the accounta. Common Stock will be credited for
Ulleksa [173]

Answer:

Paid-in Capital in Excess of Par Value will be credited for $120,000.

Explanation:

The journal entry for the issue of shares is shown below:

Cash A/c Dr $140,000

   To common stock  (4,000 shares × $5) = $20,000

   To Paid-in Capital in Excess of Par Value  $120,000

(Being issue of shares recorded)

So, the cash account is debited whereas the common stock and paid-in capital should be credited

And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value

6 0
3 years ago
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