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3 years ago

13

If the Federal Reserve increases the reserve requirement, what effect will this have on the nation’s money supply? a. Increase t

he money supply. c. Have no effect on the money supply. b. Decrease the money supply. d. It will double the nation’s money supply.

1 answer:

dem82 [27]3 years ago

3 0

The correct answer is c)

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Using the 20/10 rule, calculate the maximum amount to borrow if your net yearly income is $75,000

Delvig [45]

Using the 20/10 rule: you should never borrow more than 20% of your annual net income and monthly payments shouldn't be more than 10% of your monthly net income.

In this situation, we know the yearly net income is $75,000.
First we want to multiply 20% by $75,000 = $15,000
$15,000 is 20% of your yearly net income.
This would be the most you'd want to borrow given the information provided.

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3 years ago

Which is the best way to avoid market risks?

hjlf

Not trying to sale to the wrong company or risking on a single product of some sort.

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3 years ago

If Highway 55 Studios can reduce fixed expenses by , by how much can variable expenses per unit increase and still allow the co

solniwko [45]

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by : $37.25 - $35 = 2.25

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4 years ago

Gable Ceramics, a division of Alderman Corporation, has an operating income of $ 64 comma 000 and total assets of $ 400 comma

solniwko [45]

Answer:

The question is meant to compare the original ROI and RI before the investment compared to the new investment is ROI and RI

The new investment has a lower return on investment of 11% compared to original 14%

However,the project should be considered since it has $3000 residual income in additional to the original residual income

Explanation:

The return on investment and residual income before the new investment are computed thus:

return on investment=operating income/total assets=$64,000/$400,000=16%

residual income=operating income-(total assets*rate of return)

=$64,000-($400,000*11%)=$20,000

Thereafter,the return on investment and residual income on the new investment are computed thus:

return on investment=operating income/total assets=$14,000/$100,000=14%

residual income=operating income-(total assets*rate of return)

=$14,000-($100,000*11%)=$3,000

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3 years ago

Why are companies required to perform payroll withholding?

Dmitriy789 [7]

I believe it is to make sure employees can pay their taxes.
Hope it helps!

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3 years ago

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