Discretionary income might be used to buy which items?

Wildhorse Co. wrote checks totaling $41500 during October and $45321 during November. $39460 of these checks cleared the bank in

Natalka [10]

Answer: $3,086

Explanation:

Wrote checks totaling $41,500 in

October less $39,460 of these checks cleared in October

Wrote checks totaling $45,321 in November less $44,275 cleared the bank in November

Balance of uncleared checks

In October is $41,500 - $39,460 = $2,040

In November is $45,321 - $44,275 = $1,046

Total outstanding checks on 30 Nov is $2,040+$1,046 = $3,086

8 0

3 years ago

Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 percent. Complete the following

leonid [27]

Answer:

1. See part 1 of the attached excel file for the T-account.

2. See part 2 of the attached excel file for the T-account.

3. Because BSB is cutting back on its loans, other banks will find they have lower reserves, causing them to reduce their loans. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

4. The correct options are b. Borrow money from another bank and d. Attract additional deposits.

Explanation:

1. Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 percent. Complete the following T-account for BSB.

Note: See part 1 of the attached excel file for the T-account.

In the attached excel, the following calculations are made:

Reserves = $500 million * 20% = $100 million

Loans = $500 - $100 = $400

2. Now suppose that BSB's largest depositor withdraws $25 million in cash from her account. BSB decides to restore its reserve ratio by reducing the amount of loans outstanding.

Note: See part 2 of the attached excel file for the T-account.

In the attached excel, the following calculations are made:

Deposits = $500 million - $25 million = $475 million

Reserves = $475 million * 20% = $95 million

Loans = $475 - $95 = $380

3. Because BSB is cutting back on its loans, other banks will find they have lower reserves, causing them to reduce their loans. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

4. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

The correct options are b. Borrow money from another bank and d. Attract additional deposits.

Download xlsx

4 0

2 years ago

The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense.

Yakvenalex [24]

Answer:

the amount of the adjustment in the Allowance for

Bad Debts account $3.000

Explanation:

Initial Balance

Allowance for Uncollectible Accounts $ 9.000

END Balance

Allowance for Uncollectible Accounts $ 12.000

The adjustment entry in the accountig will be

Bad debt expense $ 3.000

Allowance for Uncollectible Accounts $ 3.000

3 0

3 years ago

"interest payments are payments made – current owners of –. because these payments are determined by the level of government – a

lorasvet [3.4K]

To
US Treasury bonds
debt
not readily
mandatory

5 0

3 years ago

Read 2 more answers

The money supply curve _____. This shift could be caused by the Federal Open Market Committee's (FOMC's) open-market purchase of

lidiya [134]

Answer:

Shifts right

Explanation:

A rightward shift in the money supply curve indicates its increase. When the FOMC purchases Treasury bills, they purchase these securities with money, thus injecting more money into the economy and increasing the money supply.

7 0

2 years ago