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4 years ago

What's one disadvantage of a certificate of deposit (CD) as compared to a passbook savings account?

Business

2 answers:

san4es73 [151]4 years ago

5 0

Answer: A. Depositors must keep their money in the account for a fixed period of time.

Explanation:

A certificate of deposit (CD) is known to be a short term security which does not allow depositors to withdraw money from the account on demand. In other word, depositors are not permitted to withdraw until the maturity date. Thus, it has a high interest rate.

A passbook savings account is a saving account in which the account holder uses a paper book for transaction in the banking hall.

bagirrra123 [75]4 years ago

3 0

A. Depositors must keep their money in the account for a fixed period of time.

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6 major jobs of the federal reserve

larisa [96]

clearing checks

acting as government fiscal agent

supervising members bankers

regulate money supply

supply paper currency

setting reserve requirements

3 0

3 years ago

Baxley Brothers has a DSO of 17 days, and its annual sales are $6,570,000. What is its accounts receivable balance? Assume that

Anna71 [15]

Answer:

Accounts receivable balance=$306,000.

Explanation:

Given Data:

DSO=17 days

Annual sales=$6,570,000

Number of days in year=365 days

Required:

Accounts receivable balance=?

Solution:

$DSO=\frac{Account\s receivable}{Average\ Sales\ Per\ Day}$

Average sales per day:

$Average\ sales\ Per\ day=\frac{Annual\ Sales}{Days\ In\ year}\\ Average\ sales\ Per\ day=\frac{\$6,570,000}{365}\\ Average\ sales\ Per\ day=\$18,000$

Calculating account receivable:

$Account\ receivable=DSO*Average\ sales\ Per\ day\\Account\ receivable=17*\$18,000\\Account\ receivable=\$306,000$

Accounts receivable balance=$306,000.

6 0

3 years ago

Why do various federal, state, and local government programs help raise people’s standard of living?

ANEK [815]

The government has various reasons for this. first of all, when the living standards are raised, the people will have more disposable income. this allows the people to start buying goods hence the demand will increase. when the demand increases, more tax may also be collected and more supply may be created...this creates jobs as well.
also, an increase in living standards will mean more happy people. this will increase their productivity hence production is increased which can increase amount of tax collected or even increase supply hence make goods cheaper overally.
last but not least, this will help in improving the health and nutrition of the people as less people will be sleeping hungry and less people will be falling sick. this will allow the government to reduce its spending on the health amenities so that money could be used somewhere else.

7 0

3 years ago

Read 2 more answers

Roberts Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that

Romashka-Z-Leto [24]

Answer:

August 1, sold goods on account terms 3/10, n/30

Dr Account receivable 5,000

Cr Sales revenue 5,000

Dr Cost of goods sold 3,000

Cr Merchandise inventory 3,000

Dr Accounts receivable (freight) 320

Cr Cash 320

When FOB shipping point is used, buyer pays the freight. When FOB destination is used, the seller pays the freight.

August 7, damaged merchandise returned

Dr Sales returns and allowances 1,200

Cr Accounts receivable 1,200

Dr Merchandise inventory 720 (approximately 60% since $3,000/$5,000)

Cr Cost of goods sold 720

August 11, invoice and freight charges collected

Dr Cash 4,006

Dr Sales discounts 114 (3% of $3,800)

Cr Accounts receivable 4,120 ($3,800 for the merchandise and $320 for the prepaid freight)

8 0

3 years ago

Why is it smart to keep you cool when making claim, and how should you go about it?

svetlana [45]

Answer:

Explanation:

Keeping cool while making a claim ensures clear explaination and direct tone of the message, which when directed towards the company. It helps the insurer work peacefully. Insurer will be happy to clear the claims of people who are cooperative and don't overplay with the value of the claim.

8 0

4 years ago