All categories

3 years ago

Why do banks retain a fractional reserve?

1 answer:

7 0

Because banks hold reserves in amounts that are less than the amounts of their deposit liabilities, and because the deposit liabilities are considered money in their own right, fractional-reserve banking permits the money supply to grow beyond the amount of the underlying base money.

You might be interested in

Mr. and Mrs. Jones sold their principal residence for $750,000. They had lived in their residence for 20 years, and it had an ad

IceJOKER [234]

Answer:

D) $40,000

Explanation:

The Joneses qualify for a Section 121 exemption since they lived at their house for 20 years. They are exempted from paying capital gains taxes on the first $500,000 ($250,000 if single) in realized gains from selling their home.

Joneses taxable gain = $750,000 (sales price) - $210,000 (basis) - $500,000 (section 121) = $40,000

They will have to recognize only $40,000 in gains.

7 0

3 years ago

What is a form in computer?

sp2606 [1]

In a database context, a form is a window or screen that contains numerous fields, or spaces to enter data. Each field holds a field label so that any user who views the form gets an idea of its contents. A form is more user friendly than generating queries to create tables and insert data into fields.

7 0

3 years ago

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th

rjkz [21]

Answer:

Allocated MOH= $188,627

Explanation:

Giving the following information:

Estimated overhead= $241,800

Estimated direct labor hour= 6,800

Actual direct labor-hours were 5,300.

First, we need to calculate the estimated overhead rate:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 241,800/6,800= $35.59 per direct labor hour.

Now, based on actual direct labor hours, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 35.59*5,300= $188,627

6 0

3 years ago

Assuming a customer claim will be granted, what type of response will allow the company to build a better relationship with the

densk [106]

Answer: direct

Explanation:

Assuming a customer claim will be granted, a direct response will allow the company to build a better relationship with the customer.

Direct response marketing is a form of sales technique that is utilized in order to give a reponse on-the-spot. This usually allows prospective customer take instant actions based on the offer by the advertiser. This response sees measurable results instantly.

7 0

3 years ago

Keisha is renting a one-bedroom apartment but allows her best friend to move in and pay $200 per month to sleep on the couch for

sasho [114]

Answer:

It would be A. None of these items.

Explanation:

Insurance would never cover a TV, headphones, and two laptops.

6 0

3 years ago