If people refused to use banks to create checkable deposits, the banking system would not be able to create new money.
Checkable deposits include all accounts on which checks can be drawn. These deposits allow the owner of bank account to write checks to third parties. Also, they are very liquid assets that allow depositors to have an easy access to their funds.
For these reason, checkable deposits generally are important but also one of the lowest-cost source of bank funds, covering a large share of bank liabilities. Thus, banks create money by lending excess reserves to consumers and businesses.
Hence, if people refused to use banks to create checkable deposits, the money multiplier decreases.
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Answer: A. $4,600,000; $3,900,000
Explanation:
Based on the information that have been provided in the question, the book value will be calculated as:
= Net working capital + Current liabilities + Net fixed assets
= $725,000 + $1,375,000 + $2,500,000
= $4,600,000
Market value will be:
= $1,900,000 + $2,000,000
= $3,900,000
Therefore, the answer is option A.
Answer: A. Cournot Oligopoly B. Stackelberg Oligopoly C. Bertrand Oligopoly
Explanation:
Cournot Model: In Cournot model, firms produce output independently and then set their prices. In this type of model, the products are typically standardized.
Stackelberg Model: In Stackelberg model, there is one firm who is quite dominant and that firm sets the price. Whereas, other firms or the competing lower firms usually follow the price leader.
Bertrand Model: In this model, firms have interaction with buyers in order to set prices and quantities.
Answer:
$7.5 per machine hour
Explanation:
The computation of the budgeted manufacturing overhead rate is shown below:
The budgeted manufacturing overhead rate = Estimated manufacturing overhead costs ÷ Estimated machine hours
= $300,000 ÷ 40,000 machine hours
= $7.5 per machine hour
In order to compute the budgeted manufacturing overhead rate we simply divided the estimated manufacturing overhead costs by the estimated machine hours.
Answer:
Economic profit will be $40
So option (d) will be correct option
Explanation:
We have given number of units produced = 20 units
Price of per unit = $10 per unit
So revenue = 20×$10 = $200
Revenue :20 units * $10 = 200
Fixed cost is given $100
Variable cost: 20 units ×$3 = 60
So total cost= Fixed cost + Variable cost = 100 + 60 =$160
So economic profit = Revenue - Total cost = 200 - 160 = $40
So option (d) will be correct answer
