If uncertainty causes commercial banks to increase their holdings of excess reserves, other things constant, this will <u>reduce the size of the deposit expansion multiplier</u>. This happens because when when they decide to increase their holdings it will reduce the size of the deposit.
the time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable.
Answer:
1.
February 1 Cash $330000 Dr
Notes Payable $330000 Cr
2.
July 31 Interest expense $16500 Dr
Interest payable $16500 Cr
Aug 1 Notes Payable $330000 Dr
Interest Payable $16500 Dr
Cash $346500 Cr
Explanation:
1.
The issuance of note payable against cash will require the cash account to be debited and notes payable, which is a liability, to be credited.
2.
The interest on note payable for 6 months will become due and will be recorded on 31 July. The interest expense and interest payable accounts will be used.
The interest for 6 months is = 330000 * 0.1 * 6/12 = $16500
On 1 August, when the note and interest payable is paid, the cash will be credited by the sum of notes payable and interest payable accounts.
Answer:
B. 12%
Explanation:
Revenue in 2016 = $ 90 million
Revenue in 2017 = $ 100.8 million
Growth during 2016-17 = 100.8 million - 90 million
= $ 10.8 million
Same growth should persist for 2017 -18 which implies the gowth rate forecasted is same as growth rate during 2016-17.
Forecasted growth rate from 2017 to 18
= Growth rate during 2016-17
= (100.8 - 90)/90)
= 0.12
Therefore, we would forecast a revenue growth rate of 12%.
