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3 years ago

F banks kept 100 percent of deposits on hand as reserves, the reserve requirement ratio:

Business

1 answer:

Paraphin [41]3 years ago

7 0

Answer:

Option (B) is correct.

Option (D) is correct.

Explanation:

If banks kept 100 percent of deposits on hand as reserves, then this will indicate that all the deposited amount would be saved as reserves. Therefore, the reserve requirement ratio is 100% here which means that:

Reserve ratio = 100%

= 100 ÷ 100

= 1

and the money multiplier = 1 ÷ reserve requirement ratio

= 1 ÷ 1

= 1

Banks would not be able create new money by giving loans because the reserve requirement ratio is 100%.

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Return to questionItem 6Item 6 E8-16 Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] FedEx Co

madreJ [45]

Solution and Explanation:

The following formulas will be used in order to calculate the accounts receivable turnover ratio and in order to find out the number of days collect.

Accounts receivable turnover ratio = Net sales divided by Average net Accounts receivable

$=\$ 50,370 /[(\$ 7,250+\$ 5,720) / 2]$

$=\$ 50,370 / \$ 6,485$

= 7.77 times

Days to collect = 365 divided by Accounts receivable turnover ratio

= $365 divided by 7.77

= 47 days

Note: The number of days that has been assumed is 365 days

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3 years ago

Which one of the following descriptions best describes horizontal integration? 1) the economic development of the American West

blondinia [14]

Answer:

Explanation:

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3 years ago

Donnie Hilfiger has the following balances in its stockholders' equity accounts on December 31, 2015: Treasury Stock, $400,000;

Nana76 [90]

Answer:

Explanation:

The preparation of the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2015 is presented below:

DONNIE HILFIGER

Balance Sheet

(Stockholders' Equity Section)

As of December 31, 2015

Common stock $350,000

Preferred stock $1,000,000

Additional paid in capital $3,200,000

Total paid in capital $4,550,000

Retained earnings $,1600,000

Total $6,150,000

Less: Treasury stock - $400,000

Total Stock holders equity $5,750,000

3 0

3 years ago

King Nothing is evaluating a new 6-year project that will have annual sales of $410,000 and costs of $284,000. The project will

motikmotik

Answer:

Option (a) is correct.

Explanation:

Given that,

Sales = $410,000

Costs = $284,000

Depreciation Expense = $510,000 × 0.1920]

= $97,920

Therefore,

Operating Cash Flow:

= [(Sales - Variable Costs - Fixed Costs) × (1 - Tax Rate)] + [Depreciation × Tax Rate]

= [($410,000 - 284,000) × (1 - 0.35)] + [$97,920 × 0.35]

= [$126,000 × 0.65] + [$97,920 × 0.35]

= $81,900 + $34,272

= $1,16,172

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3 years ago

An economic contraction caused by a shift in aggregate demand causes prices to a. rise in the short run, and rise even more in t

raketka [301]

Answer:

c. fall in the short run, and fall even more in the long run.

Explanation:

The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.

As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.

In the attached image you can observe the process described previously.

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3 years ago