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3 years ago

Suppose that banks decide to hold fewer excess reserves relative to deposits. Other things the same, this action will cause the

Business

1 answer:

marysya [2.9K]3 years ago

4 0

Answer:

c. money supply to rise. To reduce the impact of this the Fed could sell Treasury bonds.

Explanation:

Since in the question it is given that the bank has decided to hold fewer reserves that contain excess reserves as compared to deposits so for this they have to borrowed the amount or the saving amount should be invested

This results in declining in interest rate which causes the money supply risen also the demand and the investment for the nation has risen that develop the inflation but for declining the inflation the FED has to sell the bonds so that it comes at equilibrium point again

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Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system u

vampirchik [111]

Answer:

Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

Explanation:

A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.

Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

8 0

3 years ago

Look at the following financial ledger which items listed on the ledger represent credits

Bogdan [553]

Answer:

The answer is B. Gift and online auction I hope this helps

Explanation:

3 0

3 years ago

The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making

Gelneren [198K]

Answer: (a) 6%

(b) 10.61%

(c) Yes

Explanation:

a) After tax cost of debt = Yield (1- tax)

= 8 ( 1 - 0.25)

= 8 × 0.75

= 6%

b) $cost\ of\ preferred\ stock =\frac{dividend}{price-flotation\ cost}$

$cost\ of\ preferred\ stock =\frac{5.20}{52-3}$

$cost\ of\ preferred\ stock =\frac{5.20}{49}$

= 0.1061 or 10.61%

Note: Cost of preferred stock is not tax deductible

c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]

8 0

3 years ago

On October 14, the Patrick Company sold merchandise with an invoice price of $1,200 ($770 cost), with terms of 2/10, n/30, to th

Anna11 [10]

Answer:

Patrick Company

Journal Entries:

Oct. 14: Debit Accounts receivable (Baxter Company) $1,200

Credit Sales revenue $1,200

To record the sale of goods on account, terms of 2/10, n/30.

Oct. 14: Debit Cost of goods sold $770

Credit Inventory $770

To record the cost of goods sold.

Oct. 18: Debit Sales returns $220

Credit Accounts receivable (Baxter Company) $220

To record the return of goods (wrong size) by Baxter.

Oct. 18: Debit Inventory $170

Credit Cost of goods sold $170

To record the cost of goods returned.

Oct. 24: Debit Cash $960

Debit Cash discounts $20

Credit Accounts receivable (Baxter Company) $980

To record the receipt of check on full settlement, including discounts.

Explanation:

a) Data and Calculations:

Oct. 14: Accounts receivable (Baxter Company) $1,200 Sales revenue $1,200, terms of 2/10, n/30.

Oct. 14: Cost of goods sold $770 Inventory $770

Oct. 18: Sales returns $220 Accounts receivable (Baxter Company) $220

Oct. 18: Inventory $170 Cost of goods sold $170

Oct. 24: Cash $960 Cash discounts $20 Accounts receivable (Baxter Company) $980

7 0

3 years ago

If a company raises money by issuing new stocks, a current shareholder has the right to purchase new shares on a pro rata basis

Mumz [18]

Answer:

d. preemptive right

Explanation:

Preemptive rights refers to the clause that is included in a merger agreement or security that allows an investor to buy a proportionate number of shares to be issued in the future in order to protects him from losing his percentage ownership of a company.

The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.

5 0

3 years ago

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