<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>
Response bias is described as the type of bias in which a variety of tendencies are displayed by the respondents to answer the questions asked in the survey inaccurately or misleadingly. These false responses eventually lead to a false or deceiving conclusion. In the given survey, 'response bias' is displayed as the respondents may display a tendency to answer the question falsely as the feeling of 'patriotism' evoked by the word 'patriotic'may prevent their original opinions to come out. Thus, <u>option B</u> is the correct answer to describe the bias in this survey.
In order to prevent this bias, the interviewer must 'reword the question' and remove the word 'patriotic' as it develops the feeling of patriotism in the respondents which mars them from answering accurately and share their true opinions or thoughts in the regards of 'supporting armed forces.' This rewording will help evoke the true and authentic responses without any bias. Thus, <u>option D</u> is the correct answer to remedy the bias.
The proceeds from the simple discount note is $16380
, while that of simple interest is $19500
Explanation:
Simple discount notes could likened to a bank loan where interest on the loan is taken from the borrowed funds before disbursement to the loan's beneficiary,hence proceeds from such notes is face value of the notes less interest taken in advance.
While on the other hand,the proceeds from simple interest note is par or face value.
The discount or interest is =8%*$19500=$1560 for one year,but $3120 for two years($1560*2)
The proceeds on the simple discount note =$19500-$3120
=$16380
The proceeds on the simple interest note is face value of $19500
She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.
Explanation:
<u>Cost of Manufacturing the Sails:</u>
Direct materials $93
Direct Labor $83
Total $173
The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.
Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.
Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity
<u>Conclusion:</u>
The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.
I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.
A long term liability is one that is due to be paid in a period longer than a year. The loan is due in less than a year so the only way to classify it as a long term liability is to make it a loan that will extend past a year. This can be done through refinancing which is to replace the current loan with another loan.
Karin's company therefore would need to demonstrate that the obligation can be refinanced on a long-term basis by them and they must also have the intention to do so as well.
