All categories

2 years ago

Which of the following are included in M2?

Business

1 answer:

alexira [117]2 years ago

5 0

Answer:

c. I , III, and IV

Explanation:

M1 and M2 are amongst the ways of measuring money supply of an economy.

M1 basically includes physical currency and coins, demand deposits, traveler's checks, and other checkable deposits.

M2 is regarded as a broader classification than M1 since it includes assets that are highly liquid but are not cash.

M2 includes M1 plus savings deposits, money market deposits, certificate of deposits less than $100,000 and money market mutual fund balances which can be readily redeemed.

Unlike the types of financial assets defined as money that are included in money supply, credit card transactions create loans that the borrower must pay later and hence are excluded from M2.

Hence M2 will include $5,000 certificate of deposits, $ 1000 in traveler's checks and $ 500 in piggy bank i.e option (c)

You might be interested in

Gibson Energy Ltd.’s general ledger account for Cash in Bank showed the following at December 31, 2019:

viktelen [127]

Answer:

1. Adjusted cash balance = Adjusted bank statement balance = $133,620.

2. See the adjusting journal entries and explanation in part 2. below.

Explanation:

Note: The data in the question are merged and they are first sorted in the attached excel file before the questions are answered as follows:

1. Complete the bank reconciliation at December 31, 2019.

The bank reconciliation is presented in two ways as follows:

a) Starting with cash book balance

Gibson Energy Ltd.

Bank Reconciliation

at 31 December 2019

Particulars Amount ($)

Cash book bal. at 31 Dec. yet to be reconciled 62,000

Add:

Collected note receivable from XYZ Corp 80,000

Less:

Dishonored NSF check (7,000)

Overdraft interest expense (1,320)

Bank service charge (60)

Adjusted cash balance at Dec 31  133,620 

b) Starting with bank statement balance

Gibson Energy Ltd.

Bank Reconciliation

at 31 December 2019

Particulars Amount ($)

Bank statement bal. at Dec 31 yet to reconciled 131,620

Add:

Cash deposited on December 9th yet be credited 85,000

Cash deposited on December 31 yet be credited 15,000

Check #52094 wrongly drawn 62,000

Less:

Outstanding checks 233 (83,000)

Outstanding checks 239 (77,000)

Adjusted bank statement balance at Dec. 31  133,620 

2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.

Date Accounts title & explanation DR ($) CR ($)

31 Dec 19 Cash 80,000

Note Receivable 78,049

Interest on note receivable 1,951

(To record note receivable & int. collected from XYZ)

31 Dec 19 Overdraft interest expense 1,320

Service charge 60

Cash 1,380

(To record interest expense and bank charges)

31 Dec 19 Account Receivable 7,000

Cash 7,000

(To record NSF check dishonored)

Download xlsx

3 0

2 years ago

Which is an example of an external factor that may affect purchase decisions?

koban [17]

I’m pretty sure it’s d sorry if it’s wrong!

5 0

2 years ago

Crane Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $52,200 with terms 3/15, n/45.

Artist 52 [7]

Answer:

Explanation:

Crane Co

June 1. Credit: Sales $52,200

Debit: Acc receivable $52,200

Being sales on account

June 12 Debit: Bank. $ 50,634

Debit: Discount Allowed $1,566

Credit: Acc receivable. $52,200

Being payment received on sales

8 0

2 years ago

Read 2 more answers

Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company

blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

4 0

2 years ago

When shopping for the best buy in a home theater system the sales representative informs Siddhartha that the more expensive mode

ira [324]

boost frequencies below 80 Hz

What is frequencies?

The frequency of a repeated event is its number of instances per unit of time. In some cases, it is also referred to as temporal frequency or ordinary frequency to underline differences with spatial and angular frequencies, respectively. One (event) per second is equal to one hertz (Hz), which is how frequency is stated. The period is the reciprocal of the frequency since it is the length of time for one cycle in a repeating occurrence. For instance, the period, T—the space between beats—of a heart beating at a frequency of 120 beats per minute (2 hertz), is equal to 0.5 seconds (60 seconds divided by 120 beats).

Learn more about frequencies with the help of given link:-

brainly.com/question/17264163

#SPJ4

3 0

1 year ago