Answer:
Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.
Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.
Discount rates – Decrease the discount rate to increase the money supply or vice versa.
Explanation:
The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.
In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.
Answer: $19.82
Explanation:
The price the investor would be willing to pay today would be the present value of the dividends and the selling price at the end of 2 years using the required return as the discount rate.
= 1.50 / (1 + 8%) + 1.50 / (1 + 8%)² + 20 / (1 + 8%)²
= 1.3888889 + 1.286 + 17.1467764
= $19.82
Answer:
Fixed cost is the one which remains fixed and doesn't changes within a range of level of activity changes which includes Factory property taxes (doesn't changes with furniture manufacturing), accounting staff salaries (doesn't changes with furniture manufacturing), sales office rent (doesn't changes with furniture manufacturing), Sales manager salary and Depreciation on factory equipment.
On the other hand, the variable cost changes with the change in the level of activity and this includes fabric for seats (greater usage for greater amount of seats), assembly labor and sales commissions paid.
Period cost is the cost that is associated with the passage of time and increases with the passage of time and is not dependent on level of activity.
This includes Factory property taxes, accounting staff salaries, sales office rent, Sales manager salary and Depreciation on factory equipment.
Product cost is the cost that is associated with costs that are directly linked with manufacturing of the product. This includes all the variable overheads, specific fixed cost and variable costs. The examples include Fabric for seats and Assembly labor.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Beginning cash balance $500000 Cash receipts 324000 Cash disbursements 534000 If the company has a policy of maintaining a minimum end of the month cash balance of $430000
Loan= 534,000 + 430,000 - (500,000 + 324,000)= 140,000
