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Airida [17]
3 years ago
9

What would be the amount of deposits D, given that the monetary base MB $750 billion, the required reserve rate (r) -0.1, the ex

cess reserve rate (ERID) 0.005, and non-bank currency to deposits (CID) equaled 1.2?
Business
1 answer:
Thepotemich [5.8K]3 years ago
4 0

Answer:

$574.71 billion.

Explanation:

The formula for calculating amount of deposits is as follows:

D= \frac{1}{(C/D)+rr+(ER/D)}\times MB

where,

D = Deposits

rr = required reserve rate

ER/D = excess reserve rate

C/D = non-bank currency to deposits

D= \frac{1}{(1.2)+0.1+(0.005)}\times 750

D = 574.712644

D = 574.71

Therefore,  the amount of deposits is $574.71 billion.

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Prior to entering the Eastern European markets, Procter & Gamble assessed the strengths and weaknesses of possible competito
Neporo4naja [7]

Answer

B. Analyzing the external environment

Explanation:

The action of Procter and gamble can be classified as analyzing the external environment.

The external environment of a business are those factors outside the business organisation that is capable of influencing the decision and actions.  The external environment factors includes economic factors, competitors, social - cultural factors etc.

The action of Procter and gamble of assessing the strength and weakness of his competitors prior to its entrance into the Eastern European market will assist the firm to identify the opportunities that it can leverage on in terms of the weakness of its competitors  and  and how well it can best improve its own services in other to match or surpass the strength displayed by its competitors

7 0
3 years ago
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:______.
PtichkaEL [24]

Answer:

E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

Explanation:

Journal Entry for Issuance of 70 shares of $30 par value preferred stock for $4,000 is -

Cash Debited -  $4,000

Paid in Capital in excess of Par value Credited -  $1,900

Preferred Stock (70 shares × $30 each) Credited - $2,100

The correct option is - E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

7 0
2 years ago
What the reasons for creating the necessity for restructuring the Organization Structure?
Nataly [62]

Answer:

To execute new strategy

Explanation:

Firms and organisations on a quarterly or yearly basis try to change their business strategies to improve revenues and to compete in the market. Overall, implementing a new strategy is complex and it is important to perform restructuring in order to effectively apply a strategy. A restructuring process helps to easily adopt a strategy without complexities.

4 0
3 years ago
Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative
Marina CMI [18]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

First, we need to sort out the data given properly, so that we can answer to the best.

Data Given:

For Chamber D103:

Installed Cost = -400,000 USD

Annual Operating Cost Per Year = -4000 USD

Salvage Value 10% of P = 40,000 USD

Life = 3 years

Similarly,

For Chamber 490G:

For Chamber D103:

Installed Cost = -250,000 USD

Annual Operating Cost Per Year = -3000 USD

Salvage Value 10% of P = 25,000 USD

Life = 2 years

a.

For Chamber D103

AW Chamber D103 = -400,000 x (A/P, 10%, 3) + 40000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -400,000 x 0.40211 + 40000 x 0.30211 - 4000

AW Chamber D103 = -152,760 USD

For Chamber 490G:

AW Chamber 490G = -250,000 x (A/P,10%,2) + 25000 x (A/F,10%, 2) - 3000

So,

(A/P,10%,2) = 0.5762

(A/F,10%, 2) = 0.4762

AW Chamber 490G = -250,000 x 0.5762 + 25000 x 0.4762 - 3000

AW Chamber 490G = -135,143 USD

So, after evaluating both the chambers using the AW method, more economical is the chamber 490G.

b.

Now, we need to change the values to check whether the chamber selection can be changed or not:

so, New values for Chamber D103

P = -300,000 and Salvage value of 30,000

For Chamber D103

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -300,000 x 0.40211 + 30,000 x 0.30211 - 4000

AW Chamber D103 = -115,570 USD

New Values for Chamber D103

P = -500,000 and the Salvage Value = 50,000

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -500,000 x 0.40211 + 50,000 x 0.30211 - 4000

AW Chamber D103 = -189,950 USD

Hence,

At P = 300,000 will definitely change the selection to D103 Chamber.

8 0
2 years ago
When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of
kicyunya [14]

Answer:

A. The government lowers tax rates and undertakes a replacement of old bridges and roads

B. The government lowers tax rates and issues a partial refund of taxes that have already been paid

These 2 statements are correct explained below

Explanation:

A. The government lowers tax rates and undertakes a replacement of old bridges and roads, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also the replacement of bridges and roads is improvement in infrastructure and this also increases supply as transportation is easier and cheaper for businesses.

B. The government lowers tax rates and issues a partial refund of taxes that have already been paid, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also refund of taxes will increase the disposable money that people have so they can invest and consume both which will increase both supply and demand.

C. The government raises tax rates and reduces unemployment insurance payment

This is contraction fiscal policy and will do the opposite of expansionary fiscal policy, that is why this statement is incorrect.

D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. This statement is wrong because lowering the interest rate is an expansionary monetary policy and not an expansionary fiscal policy.

7 0
3 years ago
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