The answer would be 55%.50% of 40 is 20. 5% of 40 is 2.
Answer:
Retained earnings refers to:
D. The net losses and dividends declared since its inception of a company's cumulative net profit.
Explanation:
Retained earnings are referred as :
- The overall earning the company have made till the present date.
- This earning excludes the dividend money and the money of the investors distributed.
- Whenever new records are made for the company this dividend money is readjusted.
- This leftover money has an impact on the account related to the expense and revenue.
- The retained earnings are built of the total income amount which has been given by a business after paying off the dividend to the shareholders.
So, here correct option is
D. The net losses and dividends declared since its inception of a company's cumulative net profit.
Answer:
Trading.
Explanation:
In Business management, when a gain or loss is realized, it simply means that the owner of stock or other securities has sold it. Thus, these unrealized gains or losses are generally referred to as paper profits or losses.
Basically, when the value of a stock being bought by an investor reduces (falls) while he or she is yet to sell it, it is known as an unrealized loss.
However, when the value of a stock being bought by an investor rises (increases) while he or she is yet to sell it, it is known as an unrealized gains.
Hence, unrealized holding gains or losses which are recognized in income are from debt securities classified as trading.
The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.
<h3>What is the reserve ratio?</h3>
The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.
<h3>How is reserve ratio determined?</h3>
- The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
- The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>
The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.
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