Answer:
$120,000
Explanation:
The computation of increase shareholders' equity is shown below:-
Number of bonds issued = Total face value of bonds ÷ Face value per bond
= $1,000,000 ÷ $1,000
= 1,000 bonds
Increase in shareholders equity = Number of bonds × Share warrants per bond × Market price of each warrant
= 1,000 × 30 × $4
= $120,000
So, we have applied the above formula to determine the increase in shareholder equity.
Answer:
Following are the explanation of the given points:
Explanation:
In choice (a):
The Fed was expected to purchase securities worth $2 billion, in will consist of up to two billion dollars, which adds the vales $ 40 and $2s equal to $42 billion and it minimizes securities by two billion Dollars (60-2$=58 billion dollars). The reserves required for a demand of 200 billion dollars are $40 billion (= 20% of 200 billion dollars).
The excess assets are two billion dollars (= 42 billion dollars-40 billion dollars) as well as the financial system will add 10 billion dollars more (= 2 billion dollars x 5) to the supply of money (by lending money).
In choice (b):
The Financial banks are expected to borrow from the Fed $1 billion. In the financial institutions, it can now raise (by loaning money) its supply of cash by 5 billion dollars (= $1 billion * 5).
In choice (c):
The adjustment throughout the reserve ratio doesn't change the balance sheets itself. If either the reserve ratio is assumed reported having reduced from 20% to 19%, then assets required currently stand at $38 billion (= 19% of $200 billion (= 0.19 x 200 = $38 billion), with financial institutions still able to increase their capital (by loans) by $10.53 billion (= $2 billion (1/0.19)). Proof: $210.53 billion 19% is $40 billion.
Following are the attachment of the table:
Answer:FALSE
Explanation: UNEMPLOYMENT is a term used to describe the inability of persons to secure jobs due to the reduced number of jobs available. People can be unemployed due to various reasons which includes Lack of qualification, lack of available jobs etc.
Unemployment is not only as a result of lack of qualification,it can also be caused by other prevailing conditions which makes the number of available jobs to be lower.
Incorrect. You don’t need a comma after “crocodiles” or before “other”
Answer:
a.Cash - $133 Net Income $ 0
b.Cash $0 Net Income -$133
c.Cash $0 Net Income $1,297
d.Cash $865 Net Income $0
e.Cash -$2,528 Net Income $0
f.Cash $ 0 Net Income - $610
Explanation:
Item b. The Supplies Expenses will be recognized out of supplies account and this will reduce the Net Income
Item c. Sales made on Account does not Affect cash but increases Net Income.
Item d. Receipts from Customers only affects Cash and no effect on Net Income.
Item e. Purchase of Equipment is a Capital Expenditure that only affects cash.
Item d. The depreciation expenses only affects Net Income.