Answer:
The correct answer is $30 billions.
Explanation:
The checkable deposits are given as $140 billions.
The total reserves are $51 billions.
The required reserve rate is 30%.
The required reserves will be
=30% of $140 billions
=
=$42 billions
The excess reserves will be
=total reserves-required reserves
=$51-$42
=$9 billions
Maximum expansion by lending will be
=
=
=$30 billions
So, the money supply can be expanded by a maximum amount of $30 billions.
Answer:
$52,745
Explanation:
The computation of annual saving in transportation cost is shown below:-
Cost of plane = Annual saving in transportation cost x PVAF (i%, n) + Residual value × PVF (i%, n)
306,840 = Annual saving in transportation cost × PVAF (8%, 6) + 100,000 (8%,6)
306,840 = Annual saving in transportation cost × 4.623 + 100,000 × 0.630
306,840 = Annual saving in transportation cost × 4.623 + 63,000
Annual saving in transportation cost = $306,840 - $63,000
= 243,840 ÷ 4.623
= $52,745
Therefore for computing the annual saving in transportation cost we simply applied the above formula.
Answer:
The correct answer is option b.
Explanation:
Economies of scale refer to the reduction in the average cost of production as the quantity of output produced increases. In the production process, there is some fixed and variable cost involved.
The average cost of production is the ratio of the total cost incurred in the process of production and the level of output. It is the cost of producing each unit of output.
The producers can reduce their cost of production through the division of labor and specialization.
Answer:
1. The testing cost before putting the equipment into production
2. The costs of transportation
3. The costs of installation
Explanation:
An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company made in the acquisition of an equipment. It shows the true amount that was paid for the acquisition of the equipment before sales tax was applied.
1. testing costs before putting the equipment into production
2. costs of transportation
3. costs of installation
Should be included in the cost of acquisition of a new equipment.