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4 years ago

5. Use the information below to answer question 5:

Business

2 answers:

ipn [44]4 years ago

8 0

Answer:

a. 200

b.900

c. 10

Explanation:

a) Excess reserves = total reserves – required reserves

= 400 (given) – (deposits* required reserve ratio of which is usually 10%, so we assume it is 10%)

= 400 – (2000* 10%)

= 400-200

Excess reserves = $200

b) Monetary base = total reserves + currency

= 400 + 500 (given)

Monetary Base (B) = $900

c) The money multiplier is calculated as 1 divided by the required reserve ratio

Money multiplier = 1 / 10%

= 10

NemiM [27]4 years ago

5 0

Answer:

(a) Excess reserves = 200

(b) Monetary base (B) = 900

Explanation:

Assuming that the required reserve ratio (missing in the question) is 0.1:

(a) Excess reserves = Reserves - Required reserves

Reserves = 400

Required reserves = Deposits x Required reserve ratio

= 2000 x 0.1

= 200

Hence, Excess reserves = 400 - 200

= 200

(b) Monetary base (B) = Reserves + Currency

= 400 + 500

= 900

= 1 / 0.1

= 10

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Explanation:

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3 years ago

If the incentive to take advantage of a conflict of interest is high Question 3 options: A) removing the economies of scope that

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Answer:

The correct answer is letter "D": the costs of non-action in removing the conflict will always be higher than the cost of removing the conflict.

Explanation:

Conflicts of interest arise in organizations when the personal interest of a representative contrasts the interest of the company typically resulting in an unethical action. An example of a conflict of interest is influencing the recruitment of an applicant because the representative knows that person.

In case the cost of conflict is high, even higher will be the cost of non-action in removing the conflict since it will be detrimental for the company's interest over the long run.

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3 years ago

Which of the following is a true statement about the limitation on business interest deductions? This limitation is not imposed

olga nikolaevna [1]

Answer:

Limitation on Business Interest Deductions:

B. The limitation is calculated as a percentage of the taxpayers total taxable income

Explanation:

30% (or 50% for years 2019 and 2020, as amended by the CARES Act) of the adjusted taxable income of a business is the limit of business interest expense that is allowed by the IRS. The excess after this limitation may be carried forward by the tax paying organization to future tax years indefinitely until the interest expense is completely applied.

Following the CARES Act, "the business interest expense deduction limitation does not apply to certain small businesses whose gross receipts are $26 million or less, electing real property trades or businesses, electing farming businesses, and certain regulated public utilities. The $26 million gross receipts threshold, which applies for the 2020 tax year, is adjusted annually for inflation."

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3 years ago

Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use

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C. sustainable competitive advantage

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3 years ago

Which type of account typically has low liquidity?

il63 [147K]

Option (d) is the correct option.

Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately.

Further Explanation:

Liquidity:

Liquidity is a measurement of an asset’s ability to convert it into cash. If any specific asset can be converted into cash quickly, then it is considered a liquid asset.

Example: Stock, Debtors, Marketable securities are liquid assets as they can be converted into cash very quickly. On the other hand, land and building are not liquid assets as they would require a longer time to convert into cash.

Low liquidity account:

Certificate of deposit is a low liquidity account.

Certificate of deposit:

Certificate of deposit is a saving account. In certificate of deposit, the customer of the bank deposits lump-sum amount in the bank account, and it can be withdrawn after a specified time. Certificate of deposit has a higher interest rate than a normal saving account. Generally, the tenure of the certificate of deposit varies from 1 year to 10 years. The customer of the bank cannot withdraw the funds before the maturity date of the deposit.

Certificate of deposit has lower liquidity because the funds cannot be withdrawn before the maturity date of the deposits. Once deposited, the funds can be converted to cash after the maturity period, which varies from 1 year to 10 years as per the agreement with the customer.

Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately

Checking account, savings account, and money market account has high liquidity as money can be readily withdrawn from these accounts.

Learn more:

1. Learn more about cash budget

brainly.com/question/12985585

2. Learn more about the role of money

brainly.com/question/12984919

3. Learn more about the cash deficiency

brainly.com/question/12981857

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

Keywords: Account, Bank account, Bank, Liquidity, High liquidity, Low liquidity, Saving account, Checking account, Money market account, Certificate of deposit, Converted to cash.

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3 years ago

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