Answer:
.size of the financial institution
Explanation:
The reserve requirement is one of the monetary policies of the Fed used to increase or decrease the money supply in the economy. The Fed will require commercial banks a certain percentage of the cash deposits in their vaults as reserve. Through the reserves requirement, the Fed regulates the amount of money available to be loaned to firms and households.
The amount of reserve a bank is supposed to hold as reverse is dependent on its size. For example, small size banks whose transaction accounts are below 15.2 million are not required to hold reserve. Medium size banks that with transaction account that range from $15.2 million to $110.3 million are required to keep 3 percent of deposits as reserve. Large banks with transaction accounts above $110 million must hold 10 percent as reserve.
Answer:
B. good for Jon but bad for Tony
Explanation:
Before he went to college, Jon bought a car from his brother Tony. They agreed that Jon would pay Tony $10,000 when Jon graduated from college. While Jon was at college, inflation was higher than expected. Thinking only about the car transaction, this unexpectedly high inflation was<u> good for Jon but bad for Tony .</u>
Generally, inflation favors borrowers and hurts lenders. Technically, Jon is owing Tony $10,000.
With an inflation rate of 5% the value of that money depreciates to 95% of its real value because inflation rate depletes the real rate of money and is the biggest factor of lose of monetary value.
The money that Jon will eventually pay Tony will be lesser in value which is good for Jon and bad for Tony.
Dumping occurs when, in a foreign market, a good is sold <span>below its cost of production or below the price in that market.
In most cases, companies do dumping if they're waiting for a new batch of products to arrive and they want to clean up some spaces to put additional inventory.</span>
Answer:
Debit Interest Expense, credit Cash and Discount on Bonds Payable.
Explanation:
The journal entry that a company needs to record for payment of interest is: a debit to the interest receivable account and a credit to the interest income account.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to cash.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to discount on bonds payable.
Answer:
expected cost = $2800 per month
Explanation:
given data
Copies (per month) = 4,000
probability = 40%
copies (per month) = 9,000
probability = 60%
lease new copier = $1,050
variable cost = $0.25
to find out
What is the expected cost
solution
we know that expected cost is here
expected cost = fixed cost + variable cost .................1
and here demand of copies per month is express as
= ( 40 % of 4000 ) + ( 60% of 9000 )
= 1600 + 5400 = 7000
so from equation 1
expected cost = fixed cost + variable cost
expected cost = 1050 + 0.25 × 7000
expected cost = 1050 + 1750
expected cost = $2800 per month