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Sever21 [200]
2 years ago
7

After a sluggish quarter, the Federal Reserve Bank decides to increase the money supply in the economy. When the money-creation

process is complete, the Fed wants there to be $20 billion worth of new funds in the money supply. If the required reserve ratio is 5%, what is the simple money multiplier, and by how much should the Fed initially increase the money supply? Assume that all currency is deposited in banks and that banks hold no excess reserves.
Business
1 answer:
Maslowich2 years ago
5 0

Answer:

20; $1 billion

Explanation:

Given that,

New funds = $20 billion

Required reserve ratio = 5%

Money multiplier:

= 1/Required reserve ratio

= 1/0.05

= 20

Initial money increase by:

= Funds wants to be in the money supply × Required reserve ratio

= $20 billion × 5%

= $1 billion

Therefore, the Fed should initially increase $1 billion in the money supply.

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If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is $
k0ka [10]

Answer:

390,000

Explanation:

The cost of goods sold is the expense incurred in producing goods to be sold in a period. It is abbreviated as COGS.

The cost of goods sold is calculated using the formula

COGS = opening stock + purchase/ cost of goods manufactured - ending stock

In this case:

Beginning  stock = $60,000

Ending stock =$50,000

Cost of goods manufactured $380,000

COGS= $60,000 + $380,000- $50,000

COGS = $390,000

5 0
3 years ago
Lucy Sportswear manufactures a specialty line of T-shirts using a job-order cost system. During March, the following costs were
alukav5142 [94]

Answer:

Unit cost= $5,5unit

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.

<u>In this exercise:</u>

Cost of goods manufactured:

Direct materials= $13700

Direct Labor=$4800

Factory overhead= 800hours*$25=$20000

Total= $38500

Unit cost= 38500/7000=$5,5unit

8 0
3 years ago
The variable in an experiment that is observed or measured in response to the experimental condition is known as the _________ v
Ierofanga [76]
Design make liability
5 0
3 years ago
Project: Interview
natulia [17]

A professional interview is a stage where information about the candidate's professional profile, experiences and job details are discussed.

<h3 /><h3>How can an interview influence the candidate's vision?</h3>

The candidate is able to develop insights into the career for which they are aiming for a position in the job market, through the information provided by the recruiter about the position and the characteristics desired by professionals, such as:

  • Communication
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Therefore, in a marketing career, for example, there are several characteristics that correspond to the most demanded in a candidate, due to the speed of market changes that demand constant innovation and creativity.

Find out more about interview here:

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3 0
2 years ago
An individual contracts for the purchase of 200 shares of $10 par common stock at a subscription price of $15. After making paym
Klio2033 [76]

Answer:

D) Credit paid in capital in excess of par on common, $400

Explanation:

The summary journal entry should be:

Dr Cash 1,200

    Cr Common stock 800

    Cr Additional paid-in capital in excess of par value 400

the subscriber paid $1,200 / $15 per stock = 80 stocks

par value = $10 per stock x 80 stocks = $800

additional paid-in capital = $5 per stock x 80 stocks = $400

4 0
2 years ago
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