Growth stocks:

Only one commercial bank in the banking system has an excess reserve, and its excess reserve is $400,000. This bank makes a new

Zarrin [17]

Answer:

money supply will increase by 2,400,000

Explanation:

the expansion f the money supply will be:

the money multiplier will be:

1/reserve ratio = 1/0.125 = 8

300,000 x 8 = 2,400,000

The reasoning for the multiplier effect is the following:

once the money is received, it will be used, and the person who receive the cash will deposit their proceeds.

This amount, can generate a new loan for, the remainder after subtracting the required reserve.

300,000 - 12.5% = 262,500

And this, once used will also end in a deposit. This opens the posibility for another loan, after reducing the reserve

262,500 - 12.5% = 229,687.5‬

This can be reapeat again and again and the limit for this is the formula state above:

multiplier effect = 1/reserve ratio

5 0

3 years ago

Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $3,350,000. The buildin

Volgvan

Answer:

Building = $1,340,000

Land = $1,675,000

Furniture and fixtures = $335,000

Explanation:

This is an example of Basket Asset Purchase whereby a number of assets purchased as one package.

Initial value of each asset is are determined by the Basket Asset Purchase based on their relative fair market value as follows:

Building = $3,350,000 × [$2,560,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.4 = $1,340,000

Land = $3,350,000 × [$3,200,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.5 = $1,675,000

Furniture and fixtures = $3,350,000 × [$640,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.1 = $335,000

Therefore, the initial values of the building, land, and furniture and fixtures would be $1,340,000, $1,675,000, and $335,000 respectively.

6 0

3 years ago

Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in

il63 [147K]

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.

4 0

3 years ago

An employee in your department has been coming to work 20 minutes late for the past week. the rest of the employees have picked

balandron [24]

The best way to handle this situation in a more professional way is to advice and tell the employee that his or her habit of being late had affected the department's ability. It is best to tell him or her that his or her presence is needed in order to get the job done and to be able to make the works or tasks that is being sent to the department more faster if he or she would come early and help with the other employees.

8 0

3 years ago

Read 2 more answers

State Farm insurance company prints an ad in a national newspaper’s apartment rental section with a picture of a girl sitting on

Jobisdone [24]

Answer:

Safety and Security

Explanation:

Blow drying your hair over the tub isn't safe

6 0

3 years ago