<span>1. Suppose Oscar withdraws $100 from his checking account and deposits it into his savings account. This transaction causes M1 to A. Increase by $100 and M2 to remain the same. B. Decrease by $100 and M2 to remain the same. C. Decrease by $100 and M2 to increase by $100. D. Remain the same and M2 to increase by $100</span>B<span>2. Suppose Megan withdraws $75 from her savings account and deposits it into her checking account. This transaction causes M1 to A. Increase by $75 and M2 to remain the same. B. Decrease by $75 and M2 to remain the same. C. Increase by $75 and M2 to decrease by $75. D. Remain the same and M2 to increase by $75.</span>A<span>3. Suppose Jared takes $200 from his savings account and holds it as cash. The immediate result of this transaction is that M2 A. Increases by $200 and M1 remains the same. B. Decreases by $200 and M1 remains the same. C. And M1 do not change. D. Remains the same and M1 increases by $200.</span>D<span>4. A single bank with $10,000 of reserves and a reserve ratio of 25 percent could support total transactions account balances of at most A. $10,000. B. $5,000. C. $40,000. D. $25,000.</span>C<span>5. A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions account balances of at most A. $400,000. B. $1,000. C. $100,000. D. $20,000.</span>A<span>6. Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then initially, ceteris paribus, A. This bank can increase its loans by $5,000. B. This bank can increase its loans by $4,000. C. Total reserves will increase by $4,000. D. Required reserves will increase by $5,000.</span>B<span>7. Initially a bank has a required reserve ratio of 10 percent and no excess reserves. If $1,000 is deposited into the bank, then, ceteris paribus, A. This bank can increase its loans by $900. B. This bank can increase its loans by $1,000. C. Total reserves will increase by $900. D. Required reserves will increase by $1,000.</span>A<span>8. If total reserves for a bank are $12,000, excess reserves are $2,000, and demand deposits are $100,000, the money multiplier must be A. 20. B. 15. C. 10. D. 5</span>C<span>9. If the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required reserve ratio of 10 percent, the banking system can increase the volume of loans by a maximum of A. $5,000. B. $50,000. C. $85,000. D. $100,000.</span>A<span>10. Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system? A. $1 billion. B. $150 million. C. $15 billion. D. $6.67 billion.</span><span>B</span>
Prevention costs: costs incurred in order to prevent failures or minimize defects, they include maintenance expenses = $11,000
Appraisal costs: costs incurred in order to make sure that the products meet quality standards and customers' expectations, they include inspection costs = $15,000
Internal failure costs: costs incurred due to faulty products or procedures that occur before any good is actually taken out of the facilities, they include scrap and rework ($10,600) and machine breakdown costs ($5,400) = $16,000
External failure costs: costs incurred after the goods leave the facilities, they include warranty expenses ($34,000), product returns due to defects ($6,000) and lost sales due to low quality ($10,000) = $50,000
Quality cost report:
Prevention costs
Machine maintenance expense $11,000 $11,000
Appraisal costs
Inspection cost $15,000 $15,000
Internal failure cost :
Scrap & rework $10,600
Machine breakdown costs $5,400 $16,000
External failure costs :
Warranty expense $34,000
Product returns due to defects $6,000
Estimated lost sales due to poor quality $10,000 <u>$50,000</u>
Total quality cost $92,000
b) What percentage of sales revenue is being spent on prevention and appraisal activities?
total sales revenue = $500,000
prevention and appraisal costs = $26,000
% = $26,000 / $500,000 = 5.2%
c) What percentage of sales revenue is being spent on internal and external failure costs?
Career patterns involving movement across specializations and disciplines are becoming more prevalent. From the company’s perspective, failure to help employees plan their careers may result in a shortage of employees, low employee commitment, and ineffective use of training dollars. From the employee’s perspective, lack of career management may mean frustration, feelings of not being valued, and unable to find acceptable work should a job change be necessary. The career patterns are changing nowadays ,involving movement across specializations or disciplines . The more prevalent career patterns, involves more frequent job changes and across specializations .
