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AnnZ [28]
3 years ago
6

Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Th

e bank sells $5,000 in securities to the Federal Reserve Bank in its district, receiving a $5,000 increase in reserves in return. Instructions: Enter your answer as a whole number. What level of excess reserves does the bank now have?
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

$5,000

Explanation:

New total reserve = Existing reserve + Increase in reserve = $20,000 + $5,000 = $25,000

Required reserve still remains at $20,000 because the sale of securities does not change the checkable deposits,

Therefore, we have

Excess reserves = Actual reserve - Required reserve = $25,000 - $20,000 = $5,000 .

Therefore, level of excess reserves the bank now have is $5,000.

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You are the owner of a retail shop. One of your managers regularly calls employees and coworkers names like deadbeat and crook i
stepan [7]

Answer:

Letter A is correct. <u>Abusive language.</u>

Explanation:

The communication process is essential for any business, it is through communication that ideas and objectives, needs and integration of the internal and external environment are expressed.

Business communication should promote integration and relationship with the company's stakeholders, so it is necessary that the communication process is based on ethics and legal conduct, so that there is no type of communication noise and information is passed on in a timely manner. contrary to what was proposed.

It is necessary for managers to adopt a posture consistent with the organizational culture, in the case exemplified above there is an abusive language, as there is the use of offensive words to refer to employees and customers, therefore this conduct must be promptly reviewed, as an effective manager is one that ensures that its public is respected and protected from harm, so that the organizational climate is as positive as possible, which ensures greater productivity and motivation of employees to make the organization more profitable.

3 0
3 years ago
Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to?
alisha [4.7K]

Answer:

Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.

<h3>How does the auditor obtain reasonable assurance?</h3>
  • In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
  • Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

To learn more about it, refer

to brainly.com/question/24553900

#SPJ4

5 0
2 years ago
Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,600, t
myrzilka [38]

Answer:

A periodic inventory method is a method where the inventory account is adjusted at the end of each accounting period and not continuously as with the perpetual method. All inventory purchased is recorded to a purchases account. Cost of goods sold is calculated by adding purchases to beginning inventory and then subtracting ending inventory. The following journal entries are examples of how to account for inventory under a periodic management method.

explanation:

4 0
3 years ago
Why do businesses take financial cost into account other than social cost when making decisions.
deff fn [24]

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

Why do businesses take financial costs into account other than social costs when making decisions.?

The reason why is because businesses are created to make profits. And financial costs directly impact sales, revenue, and profits. Any other consideration that does not directly affect the balance sheet or the bottom line, is not considered a priority and takes the back seat when business decisions are made.

On the other hand, the social cost should be important and it is, but not as important as the financial costs for the above-mentioned reasons.

Social costs are more on the side of the ethics of the managers or leaders of the organizations. And ethics and moral values are not a prominent thing to be considered in the decision-making process of modern corporations.

7 0
3 years ago
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected
son4ous [18]

Answer:

Correct option is (D)

Explanation:

Given:

Purchase price of copyright = $50,000

Expected useful life = 5 years

Annual depreciation expense as per straight line method:

= Purchase price ÷ useful life

= 50,000 ÷ 5

= $10,000

Only useful life is considered and not legal life.

Carrying value of asset at the end of year = Book value of asset - annual depreciation

Carrying value of copyright at then end of first year = 50,000 - 10,000 = $40,000

Carrying value of copyright at then end of second year = 40,000 - 10,000 = $30,000

5 0
3 years ago
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