Answer:
As of December 2019, the total amount of currency in the US economy was $1,700 billion, while total checkable deposits as of December 2019 was $2,300 billion.
Explanation:
Total M1 money supply in the US economy as of December 2019 was $4 trillion (as stated by the federal reserve)
M1 money supply includes checkable deposits, paper bills and coins (currency) and travelers' checks.
Answer:
<h3>
Reduce public and private sector debt to reduce solvency risks.</h3>
Many economy experts state that the main problem which cause an economical crisis was solvency, not liquidity. This means that financial institution didn't have capability to pay, they had enough liquidity (active that can be transformed in cash), but that weren't enough to cover all debt, which brought crisis.
<h3>
Structural reforms to improve competitiveness of real economy.</h3>
The system needs to be reformed about competitiveness, because there're too many monopolies in the economy which is against diversity, leading to a crisis. Doing more fair the competition stage, the economy will have more participants, which is crucial to have a free market model, at the end, this competitiveness will bring back the confidence in this sector. Another positive result of this measure is that there're gonna exist more jobs for people, which is crucial, because the rate of unemployment is dramatic.
<em>Therefore, these two measures could be a possible solution, because attempt in two specific problems which are really serious.</em>
Application, Security and System.
Answer:
A
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
Security A : 11 = 1( 1 + r)^15
11^(1/15) = 1( 1 + r)
1.173 = 1 + r
r = 1.173 - 1
r = 17.33%
Security A : 16 = 1( 1 + r)^15
16^(1/15) = 1( 1 + r)
1.20 = 1 + r
r = 1.2 - 1
r = 0.2
r = 20%
Security B earned a higher average annual rate of return as 20% is greater than 17.33%
Answer:
Explanation:
The journal entries are shown below:
On January 31
Allowance for doubtful accounts A/c Dr $800
To Account receivable A/c $800
(Being the written off amount is recorded)
On January 31
Account receivable A/c Dr $300
To Allowance for doubtful accounts A/c $300
(Being the reverse entry is made)
On March 9
Cash A/c Dr $300
To Accounts receivable A/c $300
(Being the amount is collected)
