All categories

3 years ago

Are outstanding credit card balances counted as part of the money supply?

1 answer:

3 0

Credit card balances are not counted as part of the money supply, because credit card balances reflect funds that have been borrowed. Unlike money, they cannot be used as a means of payment. The M1 supply contains coins, paper currency, demand deposits, other checkable deposits, and traveler's checks. So, outstanding balances on credit cards is not a component of the M1 money supply.

You might be interested in

A $52,000 loan is taken out on a boat with the terms 3% apr for 36 months. the apr is compounded monthly. how much are the month

boyakko [2]

Answer:

Monthly payments=($56890.673/36)=$1,580.296

Explanation:

The formula for calculating the compound interest is given as;

A=P(1+r/n)^nt

where;

A-Amount to be paid after a given period of time

P-Principal amount initially taken=$52,000

r-The annual interest rate=3%=3/100=0.03

n-Number of times the interest is to be compounded per unit time=12

t-3

Replacing;

A=52000(1+0.03/12)^3

A=52000(1.0025)^(3×12)

A=56,890.673

The total amount after 36 months=$56,890.673

Monthly payments=($56890.673/36)=$1,580.296

5 0

3 years ago

g Which of the following best describes the company-related considerations (beyond software type) for the choice of a process me

aliya0001 [1]

Answer:

vii) Which of the following best describes the company-related considerations (beyond software type) for the choice of a process methodology in a software project?

1. Company size and culture and geographic team distribution

2. Start-up vs established company

3. Software size

4. Risk-taking vs. bureaucracy

Explanation:

8 0

3 years ago

Fixed costs included in this income statement are $2,000 for meal production and $400 for administrative costs. Maria has receiv

Olenka [21]

Answer:

While the special order generates a positive differential cost of $15

It should be rejected.

As this is an insignificant reward (15 / 1,000 = 1.5%)

considering the effort needed (300 / 2,000 = 15% production)

We increase production by 15% to increase our income by 1.5%

Any deviation from the expected cost will turn the project into a negative outcome the project is not useful for the current cost structure.

Explanation:

MISSING INFORMATION

TOTAL /// Per Unit

Sales revenue $10,000 $ 5.00

Costs of meals 8,000 4.00

Gross profit 2,000 1.00

Administrative costs 1,000 0.50

Operating profit 1,000 0.50

Fixed Cost

2,000 meal production

400 administrative cost

Variable cost:

unit sold: 10,000 / 5.00 = 2,000

Total Cost: 9,000

Less fixed of 2,400

Variable cost 6,600

6,600 / 2,000 units = 3.3 per unit

Special order:

Sales revenue 3.35 x 300 = 1,005

Cost per unit: 3.30 x 300 = 990

revenue 15

7 0

3 years ago

On September 23, Reese Company received a $350 check from Mike Moluf for services to be performed in the future. The bookkeeper

Zielflug [23.3K]

Answer:

debit Accounts Receivable $350 and credit Unearned Service Revenue $350.

Explanation:

Based on the information provided within the question it can be said that in order to correct this entry the bookkeeper needs to debit Accounts Receivable $350 and credit Unearned Service Revenue $350. This is because the $350 are coming into the account (debit), but since it is for a future service it also needs to be placed as credit Unearned Services.

6 0

4 years ago

Hunt Incorporated sold $209,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% fin

pentagon [3]

Answer:

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

Explanation:

Journal entries

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

*7% X $209,000 =$14,630

*2% X $209,000 =$4,180+$12,100=$16,280

5 0

3 years ago