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Oduvanchick [21]
3 years ago
7

The Federal Reserve comes to the conclusion that more money must be pumped into the economy in an effort to stimulate economic g

rowth.
Which of the following actions could the Fed take that would result in increasing the money supply?

A) Buy securities (bonds)

B) Sell securities (bonds)

C) Raise the reserve requirement

D) Raise the discount rate
Business
2 answers:
snow_lady [41]3 years ago
7 0

Yes the correct answer was  

A. Buy securities ( bonds)

wolverine [178]3 years ago
4 0

The answer is: B) Buying securities (Bonds)

Money supply refers to the amount of money that circulated in the country. When government buy securities from the private sector, the money would be exchanged from the government's purse to the private sector's. If this occurs, the amount of money that circulated would be increased.

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The Murdock Corporation reported the following balance sheet data for 2021 and 2020:
Alex_Xolod [135]

Answer:

The Murdock Corporation

Statement of Cash Flows for the year ended December 31, 2021

Operating activities (only):

Net income                                $69,000

Depreciation expense                  51,100

Gain on sale of securities            (6,400)

Gain on sale of equipment          (1,950)

Changes in working capital:

Accounts receivable                 (13,650)

Inventory                                   (21,900)

Prepaid insurance                          690

Accounts payable                    (74,230)

Salaries payable                        (6,400)

Notes payable (current)          (51,900)

Cash flow from operations ($55,640)

Explanation:

a) Data and Calculations:

                                                     2021           2020        Change

Cash                                         $98,465       $34,355      +$64,110

Available-for-sale debt securities

 (not cash  equivalents)             25,000       104,000       -79,000

Accounts receivable                 99,000         85,350       +13,650

Inventory                                  184,000        162,100       +21,900

Prepaid insurance                       3,210           3,900            -690

Land, buildings, and

 equipment                         1,288,000     1,144,000     +144,000

Accumulated depreciation  (629,000 )   (591,000 )     +38,000

Total assets                       $1,068,675   $942,705

Accounts payable                  $93,440    $167,670       -74,230

Salaries payable                      27,600        34,000        -6,400

Notes payable (current)           42,100       94,000       -51,900

Bonds payable                       219,000       0              +219,000

Common stock                     300,000     300,000     0

Retained earnings                386,535     347,035      +39,500

Total liabilities and

shareholders' equity       $1,068,675   $942,705

Additional information for 2021:

1. Available=for-sale debt securities:

Cost = $79,000

Sales =  85,400 Cash

Profit =  $6,400

2. Equipment:

Cost =     $20,000

Acc. Dep.    13,100

Book value 6,900

Cash sales 8,850

Profit =        1,950

Accumulated Depreciation:

Beginning balance   $591,000

Sale of equipment       (13,100)

Depreciation expense 51,100

Ending balance        629,000

3. Bonds issue = $219,000

Interest on bonds = 13,140 ($219,000 * 6%)

4. Purchase of new equipment = $164,000

5. Cash dividends = $29,500

6. Net income = $69,000

Statement of Cash Flows for the year ended December 31, 2021

Operating activities:

Net income                                $69,000

Depreciation expense                  51,100

Gain on sale of securities            (6,400)

Gain on sale of equipment          (1,950)

Changes in working capital:

Accounts receivable                 (13,650)

Inventory                                   (21,900)

Prepaid insurance                          690

Accounts payable                    (74,230)

Salaries payable                        (6,400)

Notes payable (current)          (51,900)

Cash flow from operations ($55,640)

Investing activities:

Sale of equipment                    8,850

Purchase of equipment      (164,000)

Available-for-sale debt securities

 (not cash  equivalents)        85,400

Cash flow from investing ($69,750)

Financing activities:

Issue of bonds                    219,000

Dividends                            (29,500)

Cash from financing         $189,500

Net Cash flows                    $64,110

Reconciliation:

Beginning cash balance   $34,355

Net Cash flows                   $64,110

Ending cash balance        $98,465

5 0
2 years ago
What is the answer to this question ?<br> Can someone please help !
professor190 [17]
SMART is an acronym that means specific, measurable, achievable, relevant. The answer is D.
7 0
3 years ago
Match each role on the left with its corresponding description on the right.
Mariulka [41]

Answer:

1. Book keeper: Carol, an employee of Fresh Café, documents all of its monetary transactions

2. Shareholder: Kyle purchased $1,500 of stock in Computers 'R Us

3. Auditor: B. Kim, an outside contractor, objectively analyzes Flip's Clothing Boutique's accounting processes and data

4. Controller: Charlie oversees all of Groove Market's financial reporting and accounting

Explanation:

1. A bookkeeper oversees a company’s financial data by maintaining books on accurate information such as payroll, accounts receivables, accounts payables and any other financial transactions and reconciliation.

2. A shareholder, also known as a stockholder is a person or other entity who owns at-least one share of a company’s stock or equity.

3. In auditor is a person who is responsible for evaluating the accuracy and reliability of a company’s financial statements. Auditors can be internal or external. Internal auditors are those who audit the financial statements of the company they exist in and external auditors are those from outside audit firms who are hired to evaluate another company’s financial information.

4. A controller in an individual who has responsibility for all accounts-related activities including financial, managerial and high level accounting.

7 0
3 years ago
Felicia has sent a memo to her employee, Ben, to schedule Ben's performance review. Which choice best
attashe74 [19]

Answer:

Option no. 3

This is the answer

4 0
2 years ago
Which of the following is an example of a fixed variable cost?
OlgaM077 [116]
Utility bill, due to its fluctuation.
5 0
2 years ago
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