Answer:
The Central Bank is trying to increase money supply.
Explanation:
When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.
It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.
In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.
In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.
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The number of units that Starling Co. sold was 11200
<u>Explanation:</u>
Given -
Operating income = $28,800
Fixed cost = $38,400
Selling price of one unit = $12
Variable cost = $12
Number of units sold, n = ?
Contribution margin per unit = $18 - $12
= $6
Therefore, number of units that Starling Co. sold was 11200
The journal entry to replenish the petty cash account is credit to Cash for $266.
<h3>How would petty cash be replenished?</h3>
The amount that needs to be replenished is:
= Petty cash fund - cash
= 298 - 32
= $266
This amount needs to be taken from the cash account which is why the cash account will be credited with $266.
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Answer:
Amount saved by the owner is $225.
Explanation:
given,
the property has been assessed = $40,000
the city tax rate = 10 mills = 0.001
country tax rate = 9 mills = 0.009
school board levy = 9 mills = 0.008
owner gets homestead tax exemption of = ?
Homestead tax exemption is used to same money from paying tax on their property every year.
homestead tax exemption given is $25,000
Money saved by owner = $25,000 homestead exemption × county tax rate
= $25000 × 0.009
= $ 225
Amount saved by the owner is $225.
