In an economy where the money supply and aggregate demand have been decreased by the central bank, you know that the central bank is using a contractionary monetary policy.
In an economy, changes in the money supply leads to changes in aggregate demand. An increase in the money supply increases aggregate demand and a decrease in the money supply decreases aggregate demand.
When a central bank takes action in order to decrease the money supply and increase the interest rate, it is following a contractionary monetary policy. Thus, the central bank requires Southern to hold 10% of deposits as reserves.
Hence, the decrease in the money supply reduces income and raises the interest rate.
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Answer: $15600
Explanation:
To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:
First we need to calculate the allocation rate which will be:
= $300,000/25,000
= $12.
Then, the departmental cost will be:
= Payroll checks × Allocation rate
= 1,300 × $12
= $15,600.
Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.
Answer:
Rewriting each line by hand.
Question Completion:
Cash received from bank loans was $10,000.
Revenues earned and received in cash were $9,000.
Dividends of $4,000 were paid to stockholders.
Expenses incurred and paid were $5,600.
Answer:
Jiminez, Inc.
Income Statement for the month ended March 31:
Revenue $9,000
Expenses 5,600
Net income $3,400
Dividends 4,000
Retained earnings during the year ($600)
Explanation:
Jiminez, Inc. paid more dividends to stockholders this month than it actually generated in net income. The excess amount of dividends must be from retained earnings carried forward from the previous month. In preparing the income statement for the month of March, Jiminez, Inc. must deduct all the expenses from its revenue to obtain the net income before tax. The bank loan does not form part of the items for the preparation of the income statement, as only temporary accounts are considered.
Answer:
C. Entrepreneurs aren’t exposed to any risk when starting a new business.
Explanation:
Entrepreneurs are the person who starts their own business and took a financial risk from the start. Entrepreneurs manage the activities on their own, develop new ideas. and create the team for the benefit of the organization
Therefore, Entrepreneur exposed to the financial risk while starting their own business
hence, the correct option is C.
