Answer:
A. YES
B. YES
C. YES
D. NO
E. YES
F. YES
Explanation:
The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed? Answer yes or no to each of the following:
A. The decrease in reserves would also appear on the Fed's balance sheet, but would be offset by an increase in the government's account YES, because the amount was debited on the Federal Reserve Balance Sheet when the money was transfered to the commercial bank in question.
B. The balance sheet for the bank would reflect a decrease in reserves and a decrease in deposits YES because that was a debit transaction for the bank but a Credit transaction for the Federal Reserve.
C. The decline in bank reserves would decrease the quantity of money in the vault. YES, because a decline in the reserve will reduce the quantity of money in vault and in circulation because the Federal Reserve has used Open Market Operation (OMO) to regulate the volumes and velocities of money in circulation.
D. The balance sheet for the bank would reflect an increase in reserves and an increase in deposits - NO. This is because Balance sheets give at a glance financial status of banks. Therefore, there cannot be an increase in the Fictitious Assets when there was a withdrawl or transfer of funds.
E. The increase in reserves would also appear on the Fed's balance sheet, but would be offset by a decrease in the government's account, YES. This is true since the transfer to the Fed has shown increase in the Balance Sheet while the decrease will result in funding statutory expenses of the Government during allocation of funds to the MDAs.
F. The rise in bank reserves would increase in the quantity of money. YES. Definitely, the rise in the bank reserves will increase the volume of money in ciits vault and circulation because the Federal Reserve as an economic policy at the time of its introduction wants more liquidity (money) in the economy. It is an expantionary measure by the Federal Reserve.
Answer:
Whole life insurance can be participating, which means the insured must participate in self-directed investments for the cash value
Explanation:
Insurance is a form of protection against kinds of loss.
whole life insurance is an insurance policy that allows a lifetime coverage, which means the other insurance is for lifetime and not a specific given time provided that the person continues to pays his/premium. It should be noted that Whole life insurance offers permanent protection throughout the insured’s lifetime and premiums are paid throughout the insured’s lifetime.
Answer:
$79,200
Explanation:
The computation of retained earning at year end is seen below;
= Opening retained earning balance + Net income - dividend paid
= $48,400 + $52,800 - $22,000
= $79,200
Therefore, the retained earnings balance is $79,200
Explanation:
Let us understand what a cost accounting and management accounting deals with and how both are related to business management.
Cost accounting:
- It deals with expenses and cost assessment in terms for producing or buying products.
- Gives an idea of how to measure profit.
- To determine the selling price and this would be challenging and profitable to the business and to the market.
Management accounting:
This helps the business people to make decisions, assess performance, and it is one step ahead of cost accounting.
Any business management people has to deal with money, take decision, assess the market, measure profit. So it is important to get a knowledge on Cost and management accounting.
Answer:
Explanation:
To run a business you firstly need investors or shareholders to help or run your business with you. They should have experience as running a business is tricky and can collapse within weeks. You also need large amounts of money to promote nad hire staff etc. You should also have an idea of what you want it to be like and what growth routes it should take. Make sure you have a target market to promote your ideas to. But make sure it is all realistic as silly ideas can be very costly.
=$32,000
=$28,000