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artcher [175]
3 years ago
10

Sara withdraws​ $1,000 from her savings account at the Lucky​ S&L, keeps​ $50 in​ cash, and deposits the balance in her chec

king account at the Bank of Illinois. What is the immediate change in M1 and​ M2? The immediate change is​ ______ in M1 of​ $1,000 and​ ______ in M2.
Business
1 answer:
Mashutka [201]3 years ago
8 0

Answer:

The immediate change is​ an increase in M1 of​ $1,000 and​ no change in M2.

Explanation:

The M1 definition of money includes cash, coin, checkable deposits, and traveler checks. The M2 definition of money includes all the components of M1 and savings account, money market funds, certificate of deposits, and other time deposits.

A withdrawal of $1,000 from savings account will increase M1 by $1,000, as the $50 cash and the rest of $950 in her checking account is added to M1. However, the M2 will remain the same, as the $1,000 in the savings account which is included in M2 goes to cash and checking deposit which is also in M2.

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NewCorp has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year
zmey [24]

Answer:

The cash flow to stockholders amounts to $45

Explanation:

Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.

The cash flow to stockholders is computed as:

Cash flow to stockholders = Dividend paid - New equity raised

where

Dividend paid is computed as:

Dividend paid = Net Income × %

= $360 × 35%

= $126

New equity raised is $81

So, putting the values above:

Cash flow to stockholders = $126 - $81

Cash flow to stockholders = $45

4 0
3 years ago
A strong internal control system will reduce the amount of substantive testing that must be performed.A ) True B ) False
Doss [256]

Answer:

A) True

Explanation:

The internal control structure deals with the rules, laws, procedures, practices that vary from company to company that are necessary to attain an organization's goals and objectives.

The substantive testing is an audit process aimed at checking the accuracy and reliability of the financial statements. To check if the financial statements are free from any errors, mistakes, fraud, etc. that can change users' decisions.

The financial statements should be relevant, reliable and finalize in all respects.

Therefore, a strong internal system will reduce the quantity of substantive testing required.

4 0
3 years ago
What kind of tectonic boundary is currently responsible for creating the himalayas?
natta225 [31]
The answer to this question is <span>Continent Convergent Boundary
</span><span>Continent Convergent Boundary refers to the boundary where two tectonic plates experiencing active deformation.
The friction and other type of force made by these plates often caused the land to wend upwards and forming the mountains that we see today.</span>
6 0
3 years ago
According to the numbers in the article Group of answer choices smoking among adults is elastic because the percent change in pr
nataly862011 [7]

Answer:

According to the numbers in the article

smoking among adults is inelastic because the percent change in price is less than the percentage change in quantity demanded.

Explanation:

Inelasticity means that price changes do not affect the demand for smoking among adults.  When the habits of consumers to smoke are not determined by the change in the price of the item, the demand is described as inelastic.  In other words, a change in the price of the good or service does not generate a corresponding change in the quantity demanded. Inelasticity, as an economic term, states that the quantity demanded of a good or service remains static when there is a change in its price.

5 0
3 years ago
The production supervisor at Elmwood Foods is known for being unduly critical of his subordinates' work performance. Which of th
MrRa [10]

Answer:

The correct answer is D) strictness .

Explanation:

A rigorous boss demands more than what employees can give, he is a perfectionist, he criticizes in a destructive way. This behavior is very clearly explained by Douglas McGregor in his theory X, where he mentions that this type of managers consider people simply as a means of production and that they are only moved by the salary they earn, that they do not enjoy their work and that they are for lazy nature.

8 0
3 years ago
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