Answer:
The main function of COMMERCIAL banks is to accept deposits and then to lend the same money (minus REQUIRED RESERVES) back out. Banks make a profit by charging a higher interest rate on LOANS than the interest rate they pay on DEPOSITS. Through the loan process, banks are actually able to CREATE/MULTIPLY money.
Explanation:
Commercial banks are financial institutions that engages in accepting deposits from the general population and giving back loans for investment in the sole aim of making profits.
Required reserves is the amount of money a bank must hold in order to meet liabilities when there are sudden withdrawals.
Loans are money borrowed out by a financial institution in exchange for the repayment of the loan plus interest.
Deposits are the total amount of money paid into the bank.
Money creation refers to the increase in amount of money supplied from initial deposit.
Answer: $390
Explanation:
Revenue for a merchandising business is realized when the business sells some of its goods to customers. This can either be in cash or on account which would mean that the customer did not pay cash but now owes them.
The business sold merchandise costing $350 for $390 on account so this is the amount that they will recognize as revenue.
Answer:
Option D The most complete model in the world is still only a partial reflection of organization reality.
Explanation:
The reason is that the paper works are partial reflection of organization until you visit the organization daily, notice the staff behavior, their key norms, their stories, their decision making attitudes, etc. These all things are not reflected in papers. The project must have a subjective and objective factors which aligns with the organization's values, policies, etc.
The statement indicates the excessive research about the project implementation. The post and pre-audit of the plans and procedures which are controllable by the organization. The project must also have space for the changes which a good project appraiser will be looking for.
A debit of 8000. It would make sense that a credit in cash would decrease the balance, therefore you deduct 2000 from 10000.