Answer:
Because the current money multiplier is <u>2</u>, the Fed would <u>BUY $500,000</u> worth of bonds, <u>INCREASING</u> the monetary base and so increasing the money supply by $1 million.
Explanation:
if the Fed wants to increase the money supply by $1 million, then it would need to purchase US securities worth $500,000. The formulas used to calculate the impact of the Fed's operations are:
increase in money supply = additional funds x money multiplier
- money multiplier = 1 / reserve ratio = 1 / 50% = 2
- desired increase in money supply = $1 million
$1,000,000 = additional funds x 2
additional funds = $1,000,000 / 2 = $500,000
<span>McGregor called those who prefer to watch over their employees as they complete every task of their jobs Theory X, and those who empower their employees to work independently Theory Y. Theory X has a negative opinion while Theory Y has a positive one.</span>
Answer:
The above entry would decrease stockholders' equity by $10,000 and increase the liabilities by $10,000.
Explanation:
Consultation expense is an expense and when the expense gets debited, it refers to expense being incurred which in turn decreases stockholders' equity. Accounts payable is a liability and crediting accounts payable increases the liability.
Answer:
c. 11.1%
Explanation:
The formula to compute the implied rate is shown below:
Future Value = Present Value × (1 + Interest rate)
$20,000 = $18,000 × (1 + Interest rate)
$20,000 = $18,000 × (1 + Interest rate)
So, (1 + Interest rate) = 1.1111
So, the interest rate is
= 1.1111 - 1
= 0.1111 or 11.1%
We simply applied the above formula to determine the implied rate on this loan
Answer:
When sales are overcast, it means that the amount of credit sales recorded is higher than the actual amount of credit sales made.
To fix this, send the overcasted amount to the Suspense account and debit the Sales account.
Date Account Title Debit Credit
Sales $5,000
Suspense a/c $5,000
