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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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Orientation responsibilities are normally shared between:
frosja888 [35]

Answer:

d. the HR department and the new employee's immediate manager.

Explanation:

An "employee orientation" is part of a new employee's <em>onboarding process, </em>before he's trained. It often happens on the<em> first day of employment</em>. It allows the new employee to <em>feel welcomed in the company, </em>which will make him more successful in achieving his goal.

It is the role of the HR department and<em> direct manager</em> or immediate manager to conduct the orientation. It is the role of the HR to give the employee the <em><u>company handbook</u></em> and <em><u>sign contracts</u></em>. On the other hand, the immediate manager i<u><em>ntroduces the new employee to his colleagues</em></u> and<em><u> gives him a tour of the company's premise</u></em>. Some immediate managers provide a welcome party.

6 0
3 years ago
The central element of what is purchased is called the "core," and anything bought on top of that is called what?
DedPeter [7]

Answer: value added product

Explanation:

Core services are basic things that customers want from products they purchase. Value-added services differentiate the organization from competitors . The value added products are defined as follows: A change in the physical state or form of the product (such as milling wheat into flour or making strawberries into jam). The production of a product in a manner that enhances its value, as demonstrated through a business plan (such as organically produced products).The value added products build relationships that bind customers to the firm in a positive way.

5 0
3 years ago
Labor, as a factor of production, relates only to the production of manufactured goods; services are not included. true or false
loris [4]

It is a false statement that Labor relates only to the production of manufactured goods and that services are not included.

<h3>What is a Labor?</h3>

This is a factor of production that involves individuals & machines that helps to they produce a good or service for a firm.

The reward for a Labor as a factor of production is known as Wages and Salaries.

Therefore, the statement is false because Labor helps in production of both the goods and services.

Read more about Labor

<em>brainly.com/question/17518033</em>

#SPJ1

5 0
2 years ago
you believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
Svetlanka [38]

Answer:

You should pay a stock price of $33.33

Explanation:

We can use the formula below to calculate the price per share that you would be willing to pay;

RRR=(EDP/SP)+EDGR

where;

RRR-required rate of return

EDP-expected dividend payments

SP-share price

EDGR-expected dividend growth rate

This can also be written as;

Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate

In our case;

RRR=12%=12/100=0.12

EDP=$2

SP=unknown

EDGR=6%=6/100=0.06

replacing;

0.12=(2/SP)+(0.06)

0.12-0.06=(2/SP)

0.06=(2/SP)

0.06 SP=2

SP=2/0.06

SP=33.33

You should pay a stock price of $33.33

6 0
3 years ago
How physical assets valuation and development and research pose risk.<br>​
Alex Ar [27]

Answer:

The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.

Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

  • When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
  • US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
  • IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
  • There are also other minor differences regarding depreciation, disposals and impairment rules.

Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

7 0
3 years ago
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