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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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The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc

OlgaM077 [116]

Answer:

$25.50
90,000 units
140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

6 0

3 years ago

Record the January 31, 2019 adjusting entry for the December 31, 2018 receipt of $3,000 from race participants for providing ser

MAXImum [283]

Answer:

Debit Unearned revenue $1,000

Credit Service revenue $1,000

Explanation:

When cash is received in advance for service yet to be provided, an asset and a corresponding liabilities are created.

The liability is then reduced as the revenue for which cash was collected in advance is earned.

Given that the December 31, 2018 receipt of $3,000 from race participants for providing services for three races. One race is held on January 31, 2019 and the other two will be held in March 2019.

Revenue from one race = 1/3 × $3,000

= $1,000

Since One race is held on January 31, 2019, entries required

Debit Unearned revenue $1,000

Credit Service revenue $1,000

Being entries top recognize revenue earned from the race held on January 31, 2019 .

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3 years ago

__________ managers believe that there are differences and similarities between domestic and foreign practices and that managers

almond37 [142]

Answer: Geocentric managers

Explanation: Geocentric managers are the managers that accept the fact that every country have different culture and environment which can affect the business overall. Therefore, these managers use different techniques and procedures for different economies.

These are usually the managers of multinational corporations operating globally. These managers usually do not lack resources and can use the latest and best techniques for their operations.

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3 years ago

As an accountant for hartley enterprises, you are responsible for preparing the statement of cash flows. you have transactions f

Ganezh [65]

"Cash flow from financial activities" is the heading." This section of the cash flow statement displays all of your company's financing activity, including equity, loan, and dividend transactions.

<h3>What is cash flow statement?</h3>

A cash flow statement is a financial statement that outlines all cash inflows a company receives from ongoing operations and outside investment sources.

It also includes all cash outflows for business and investment operations over a set period of time.

Thus, "Cash flow from financial activities" is the heading.

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3 years ago

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia.

Scilla [17]

The production possibility table shows that in Latalia the domestic real cost of 1 ton of pork is C. 5 tons of beans.

<h3>What is production?</h3>

It should be noted that production simply means the creation of goods and services for consumers.

In this case, production possibility table shows that in Latalia the domestic real cost of 1 ton of pork is 5 tons of beans. This is because 5 tons of beans will be sacrificed to produce the pork.

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