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3 years ago

Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?

Business

1 answer:

8_murik_8 [283]3 years ago

7 0

Answer:

A reduced time in debt

Explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

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1. For each case, determine the maximum quantity of money generated in the

Deffense [45]

Reserve requirement is 10% and excess reserves are $11 million is $122.2 million. Reserve requirement is 5% and excess reserves are $13 million is $273.6 million. Reserve requirement is 2 % and excess reserves are $7 million is $357 million.

What is money generated?

In the form of bank deposits, or the figures that show up in your account, banks produce the majority of the money that circulates in our economy.

(a) Excess reserve, the balance of the entire deposit remaining after the reserve requirement of 10% has been met. Therefore, $11 million represents 90% of the total deposit. 11+(11×10%) The entire amount of the deposit will be $12.22 million.

The money multiplier determines how much money is generated.

Money Multiplier = 1/10% of Reserve Ratio = 10

Therefore, Quantity of money generated= $12.22 million * 10 = $122.2 million.

(b) Excess reserve, the balance of the entire deposit remaining after the reserve requirement of 5% has been met. Since $13 million represents 95% of the total deposit,13+(13×5%) There will be a total deposit of $13.68 million.

The money multiplier determines how much money is generated.

Money Multiplier = 1/5 Reserve Ratio = 20

Therefore, Quantity of money generated=$13.68 million * 20 = $273.6 million.

(c) Excess reserve, the remaining balance of the total deposit after the reserve requirement of 2% has been subtracted. 98 percent of the total deposit is therefore $7 million. 17+(17×2%) Therefore, the overall deposit will be $7.14 million.

The money multiplier determines the amount of money that is produced.

Money Multiplier = 1 / Reserve Ratio = 0.5 % = 50

Therefore, Quantity of money generated=$7.14 million * 50 = $357 million

As a result, option (a) $122.2 million (b) $273.6 million (c) $357 million is an accurate answer.

Learn more about on money generated, here:

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7 0

2 years ago

When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition, the condition will

Tems11 [23]

The condition will be excused because of ESTOPPEL. Estoppel is an obstruction which prevents a person from asserting a right or denying a fact. The obstruction is normally due to the person action, conduct or failure to act. The principal aim of estoppel is to prevent injustice due to inconsistency or fraud. Estoppel is of two types: equitable and legal estoppel.

3 0

3 years ago

A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent

bonufazy [111]

Answer:

Portfolio return = 11.08%

Explanation:

<em>The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.</em>

The expected return can be determined as follows

Weighted of stock A= 15,200/(15200+23400)=0.39

Weight of stock B = 23.400/((15200+23400)= 0.61

Expected return on portfolio = (0.39 ×8.90% ) + (0.61*12.50%)= 11.08 %

8 0

3 years ago

Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing whea

timurjin [86]

Answer:

The correct answer is <em>d. Canada requires fewer resources than the U.S. to produce a bushel of wheat.</em>

Explanation:

A country (in this case Canada) has a comparative advantage over another country (in this case the United States) to produce a certain product (in this case wheat) if the production costs of that product (wheat) are less than from the other country, regardless of the opportunity cost of producing that other product in that country.

The comparative advantage is based on the fact that the country has developed greater efficiency in the use of resources or that it has greater ease of access to them due to better conditions of nature, greater technological development in the field in question, human capital more specialized in that economic field, etc.

The opportunity cost of producing a product or another in the same country does not affect a deterioration or increase of the comparative advantage developed to produce such a product.

6 0

4 years ago

Megan Company (not a corporation) was careless about its financial records during its first year of operations, 2017. It is Dece

Ilya [14]

Answer:

Megan Company

Analysis of Error and Indication of its effect on 2013 and 2014 Net Income, Assets, and Liabilities:

Net Income Assets Liabilities

2013 2014 2013 2014 2013 2014

1. O O

2. O U U

3. U O U

4. O U U

5. O U U

6. U O

7. U U

Explanation:

a) Data and Calculations:

Codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect.

The overstatement of Net Income happens when an expense incurred is not recorded in the affected period or a revenue not earned is recognized in the wrong period. For instance, when depreciation expense for 2013 is not recorded in 2013, the net income is overstated. We cannot assume that the error is corrected in 2014, according to this question.

6 0

3 years ago