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3 years ago

Which economic tool would most likely be used as part of a contractionary

Business

1 answer:

Inessa05 [86]3 years ago

5 0

Answer:

O B. Raising interest on reserves

Explanation:

The Federal Reserve expects banks to keep a percentage of customer deposits as reserves. The reserves cater to both the normal and unexpected withdrawals. The Federal Reserve (Fed) also uses reserve requirements as a monetary policy tool.

Interest on reserves is one of the monetary policy tools that the Fed uses regularly. The Fed pays interest on any excess reserves held by the banks. Increasing the interest paid on reserves encourages banks to hold more money. Decreases the interest prompts the banks to lend out more. Contractionary monetary policies are measures aimed at decreasing the money supply in the economy. Increasing interest on reserves increases money held in the banking sectors, thereby slowing down money circulation.

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Bonita Industries prepared a fixed budget of 75000 direct labor hours, with estimated overhead costs of $375000 for variable ove

Zinaida [17]

Answer: $425,000

Explanation: The total overhead cost can be computed suing following formula :-

total overhead cost = fixed overhead cost + variable overhead cost

where,

fixed overhead cost = $90,000

$variable\:overhead\:cost=\frac{\$375,000}{75,000\:hours}\times 67,000\:hours$

=$335,000

so,putting the values into equation we get :-

total overhead cost = $90,000 + $335,000

= $425,000

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3 years ago

Evaluate the costs and benefits associated with achieving iso 9000/9001 certification status for a specific product- or service-

Nataliya [291]

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3 years ago

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:

Nataly [62]

Answer:

b. Dec. 31

Income Summary 925

Fees Earned 750

Rent Revenue 175

Explanation:

At the end of each accounting period, the elements of the income statements which are the revenues earned and the expenses incurred are usually closed to the income summary account.

The revenue earned which is normally a credit balance is closed by debiting the account and crediting the income summary. The expenses are closed by crediting the account and debiting the income summary.

Hence if Fees Earned, $750, and Rent Revenue, $175,

Total revenue = $750 + $175

= $925

6 0

3 years ago

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a br

Rus_ich [418]

Answer: The correct answer is D:)

6 0

3 years ago

The balance in accounts receivable at the beginning of 2016 was $600. During 2016, $3,200 of credit sales were recorded. If the

andreyandreev [35.5K]

Answer:

$3,100

Explanation:

Step 1: Draw up the Accounts Receivable Account

Opening Balance $600 Allowance for Doubtful debt $200

Sales $3,200 Cash Collected $3,100

Closing Balance $500

$3,800 $3,800

To calculate the cash collected from customers

first, add the debit side of the accounts receivable which is a sum of the opening balance and sales= 3,800

Secondly, add the figures in the credit side including allowance for doubtful debt and closing balance= $700

Thirdly, Subtract the lesser side from the greater, $3,800 - $700 = $3,100

$3,100 was cash collected from the customers in 2016

8 0

3 years ago