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3 years ago

When the Fed acts as a "lender of last resort," like it did in the financial crisis of 2007-2008, it is performing its role of

Business

1 answer:

Evgesh-ka [11]3 years ago

5 0

Answer:

The answer is Banker's bank

Explanation:

The Fed is performing its role as a banker's bank. The Fed is the U.S or the central bank in most countries are referred to banker's bank. It acts a commercial bank for all banks in the country.

Commercial banks in all countries have an account with the central bank. Commercial banks also have access to very short-term loans when it is in the distress. Banker's bank(The Fed) has the sole authority for the money supply in the economy.

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The following totals for the month of June were taken from the payroll records of Seminole Company: Salaries, $100,000 FICA taxe

tekilochka [14]

Answer:

Given that,

Salaries = $100,000

FICA taxes withheld = $7,650

Income taxes withheld = $18,000

Federal unemployment taxes = $450

State unemployment taxes = $2,100

Therefore,

Payroll Tax Expense:

= FICA taxes withheld + Federal unemployment taxes + State unemployment taxes

= $7,650 + $450 + $2,100

= $10,200

The journal entry is as follows:

Payroll Tax Expense A/c Dr. $10,200

To FICA taxes withheld $7,650

To Federal unemployment taxes $450

To State unemployment taxes $2,100

(To record accrual of employer’s payroll taxes)

6 0

3 years ago

Back2Work is considering replacing the receptionist who answers the phone with an automated answering system. Back2Work should _

aleksandr82 [10.1K]

Answer:

involve the current receptionist in the decision process.

Explanation:

When changes are to be made that will affect an employee, the best way to reduce resistance to the change is to involve the employee in the decision-making process.

By involving the employee they will get to see the benefits of the new initiative and this will also convince them that it is for the good of the business and not a ploy to replace them.

Employees have a higher buying and will drive implementation more when they were part of the process for change.

8 0

3 years ago

Read 2 more answers

Metropolis National Bank is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain

iris [78.8K]

Answer:

Increase in money supply = $200,000

Explanation:

Note: The given question is incomplete, missing part is as follow:

Metropolis National Bank

Balance sheet

Assets Liabilities

Reserves $60,000 Deposits $500,000

Loans $440,000

Computation:

Excess reserve hold = 2% × Deposits

Excess reserve hold = 2% × $500,000

Excess reserve hold = $10,000

Required reserve = Reserves - Excess reserve hold

Required reserve = $60,000 - $10,000

Required reserve = $50,000

So,

Required reserve ratio = [$50,000 / $500,000]100 = 10%

Multiplier(K) = 1 / Required reserve ratio

Multiplier(K) = 1 / 10%

Multiplier(K) = 10

Total Money = Person deposit + Excess reserve hold

Total Money = $10,000 + $10,000

Total Money = $20,000

Increase in money supply = Total Money × Multiplier(K)

Increase in money supply = $20,000 × 10

Increase in money supply = $200,000

7 0

3 years ago

If the demand for a product decreases, what is likely to happen?

matrenka [14]

I m pretty sure the product supply would grow then the price would drop

5 0

3 years ago

Symbolic interactionists believe that the social value of the elderly in america ________ when the economy shifted being agricul

tekilochka [14]

Symbolic interactionists believe that the social value of the elderly in America decreased when the economy shifted being agricultural to industrial.
This may be completely true - industrial era means more use of technology, and usually, the elderly aren't that keen on using new technology. This also means that they are less and less relevant when it comes to the social life in America which is always growing and developing.

3 0

3 years ago