Answer:
a. If all money is held as currency then the banks create no additional money and money supply is = $1,000
b. If all money is in banks but the banks are not loaning it out as they are keeping it in reserves, no loans will be created. Supply is still $1,000.
c. The total money is the amount of deposits multiplied by the money multiplier.
Money Multiplier = 1/required reserve
= 1/0.2
= 5
Supply = 1,000 * 5
= $5,000
d. With equal amounts held as currency and demand deposits, the money multiplier will be;
=
Currency deposit ratio is 1 as the ratio to demand deposits is equal which = 1.
=
= 1.67
Money supply = 1,000 * 1.67
= $1,670
e. If the Central bank increases the money supply by 10% then the monetary base would increase by;
= 10% * 1,000
= $100
Answer:
1. Purchased $11,000 of supplies on account.
Dr Supplies 11,000
Cr Accounts payable 11,000
2. Earned and collected $28,000 of cash revenue.
Dr Cash 28,000
Cr Sales revenue 28,000
3. Paid $9,500 cash on accounts payable.
Dr Accounts payable 9,500
Cr Cash 9,500
4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,600 of supplies was still on hand on December 31, Year 2.
Dr Supplies expense 8,400
Cr Supplies 8,400
Answer:
The correct answer is letter "B": the cost of corporate advertising aired during the Super Bowl.
Explanation:
Fixed costs are business expenses that do not change as the production level goes up or down. <em>Amortization, insurance, interest expense, property taxes, rent, </em>and <em>utilities</em> are considered fixed costs. <em>Advertising </em>is considered a discretionary fixed cost, which implies, the investment dedicated to it will depend on what management considers necessary.
Thus, <em>advertising in the Super Bowl could be considered as a discretionary fixed cost by Higado Confectionery Corporation.</em>
Answer: Rejection-then-retreat approach.
Explanation: The musical equipment salesman is using the Rejection-then-retreat approach to sell his musical items. This method is used to frighten the customers with higher priced items then make them settle for lesser priced items.