As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.
Answer:
$85,500
Explanation:
The computation of the amount that was actually paid is
= Amount charged to warranty expense on its books - Deferred income tax before charging income tax
= $96,000 - $4,200 ÷ 0.40
= $96,000 - $10,500
= $85,500
Simply we subtract the deferred income tax before income tax from the warranty expense so that the actual amount could come
Answer:
The investment of Joan Osborne is expected to produce a rate of return less that 10%.
Explanation:
This implies that the expected rate of return on the investment will the minimum rate of return.
An investment with a positive NPV would produce produce an expected rate of return higher than the minimum rate of return and vice versa.
The investment of Joan Osborne is expected to produce a rate of return less that 10%.
Answer: deduct the check amount from the bank balance
Explanation:
From the question, we are informed that during the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account but the check did not clear the bank during July.
Since we are told that the check did not clear the bank in July, when preparing the July 31 bank reconciliation, the company should make sure that the amount on the check is deducted from the balance of the bank.
