Answer:
B. bank reserves increase by $40 million and the money supply could increase by a maximum of $160 million.
Explanation:
In this case there will multiplier effect in the economy. Central bank will pay $40 million by buying bond and it will be deposited in the bank. Bank would its reserves increase by $40 million and of that 25% will locked as reserve requirement but remaining will be circulated in the economy.
Multiplier = Deposit / Reserve Requirement
= 40/0.25
= 160
Therefore, The bank reserve will increase by $40 million and money supply will increase maximum by $ 160 million.
Answer:
A
Explanation:
Working capital are the components of the current assets that represents liquidity , readily available for day to day business operation.
It is made up of cash , receivable , payable , inventory balance .
Due to the new development in the business of Butler automotive , there is an upsurge in the demand for oil which has led to the increase in the oil inventory to the tune of $5,000
This means that the required working capital of Butler also has to increase to meet up with the demand.
Answer:
Overhead Rate 14.5856
Explanation:
Fixed Cost of the manufacturing overhead will be distribute over the cost driver.
Then we will add the fixed with the variable to get the total overhead per machine-hour
Answer:
a. Della will lose because he did not sign a contract.
Explanation:
The UCC are a set of guidelines that is used for trade transactions to resolve disputes and ensure equity between the buyer and seller.
There are various criteria used to qualify a valid transaction. One of them is that for a non movable asset, it's sale must be under a written contract.
A verbal contract will not suffice and is not binding.
In this scenario where Joe verbally contracts with Delia to sell his farm to Delia, they did not sign a contract and makes a down payment. But Joe decides after several months to sell his farm to Eli.
Since there is no written contract if Delia objects to the second sale she will lose
If a customer happens to pass the account must be shut down. Nothing can be done until found appropriate by someone showing proper documents which would then transfer the account into the name of an executor. The documents can be a death certificate, the will, or inheritance tax waivers
