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Alisiya [41]
3 years ago
12

What would happen if people decide to hold less money as currency and more as checking deposits

Business
1 answer:
aleksklad [387]3 years ago
4 0
The money supply will fall because banks have fewer reserves to lend. The monetary base will increase because people are holding more currency, but will decrease because banks are holding fewer reserves. ... If people end up holding more currency relative to deposits, then the money multiplier would fall.
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"the fact that having capital punishment "on the table" causes many people to confess to crimes in order to have death "taken of
Lynna [10]
Driveshaft see Tunguska
8 0
4 years ago
On October 1, 2018, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note payable in fiv
Darya [45]

Answer:

$1,551,222.84

Explanation:

We should assume the interest are implicity charged in the note payments.

In order to record the equipment at their fair value at the momnet of purchase, we will discount the note using 11% discount rate

The note will be an annuity for $500,000 during 4 year at rate 11%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 500000

time     4

rate             0.11

500000 \times \frac{1-(1+0.11)^{-4} }{0.11} = PV\\

PV

This is the value of the equipment at present value, without the interest charged on the note.

Under this value it should be recorded.

6 0
4 years ago
A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000 and other assets of $5,000. Equ
Jet001 [13]

Answer:

500

Explanation:

The computation of Total outstanding shares is shown below:-

Market Value of Shares before Share repurchase = Equity ÷ Number of Shares outstanding

= $6,000 ÷ 600

= $10

Shares repurchased = Excess Cash ÷ Price of a Share

= $1,000 ÷ 10

= 100

Total Outstanding Shares = Number of Shares outstanding  - Shares repurchased

= 600 - 100

= 500

We applied the above formula.

6 0
3 years ago
When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstruct
Vladimir [108]

Answer:

The correct answer is B) basic product.

Explanation:

The basic product is the first level of a product and is the good or service that covers a need.

It refers to the intrinsic product that covers the need. For example, it can be pure water to satisfy thirst, a car to be transported or telecommunications services to be able to communicate.

The basic product is what the generic of a satisfactory represents. However, even at this minimum level of product, the company should know that each consumer requires a product that meets their need, but this need is different in each.

7 0
3 years ago
John developed a food additive that replaces processed sugars. He granted the right to use this additive to a major cereal manuf
LiRa [457]

Answer: Licensing

Explanation:

John's ingredient is his intellectual property. By giving the right regarding the usage of the ingredient to another business entity and by receiving a sales volume related <em>royalty payment</em> for each box sold, John is involved in a <em>licensing agreement</em>.

Two parties are involved in each licensing agreement: the licencor and the licencee. In this example, John is the licencor and the cereal manufacturer is the licencee.  Both of the parties sign the licensing agreement, which is active over a specified amount of time.

Licensing is not to be confused with <em>franchising</em>. It refers to a specific business model when the franchisee operates under the brand (logo and trademark) of the franchiser, but essentially keeps its independence branch-wise. Best examples are McDonald's and KFC.

6 0
3 years ago
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