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Delicious77 [7]
2 years ago
9

Assuming the required-reserve ratio is 20%, after a $5 billion purchase of securities (government bonds) from the non-bank publi

c by the Fed, if all banks make loans until excess reserves equal zero and there are no cash leakages, checkable deposits can expand as a result of new lending by a maximum of _____.
Business
1 answer:
9966 [12]2 years ago
8 0

Answer: $25 billion

Explanation:

The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:

= Deposit into banking system * Money multiplier

Money multiplier = 1 / Required reserve ratio

= 1 / 20%

= 5

Checkable deposit increase:

= 5 billion * 5

= $25 billion

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Which of the following costs would continue to be incurred even if a segment is eliminated? A. Direct fixed expenses B. Variable
stich3 [128]

Answer:

The correct answer is C. Common fixed costs.

Explanation:

A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.

This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.

Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.

7 0
2 years ago
K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account(s) is 5%, the e
pickupchik [31]

Answer:

Since the actual performance of the separate account is actually higher than the assumed interest by 1 %, this means that K will be paid 1% more on the value of his/her annuity account.

Explanation:

An annuity account is a policy holder's investment account where the insurance company invests on behalf of the annuitant. The insurance company determine an assumed interest rate that will cover for the insurance company costs and the profit margin that will be paid to the annuitant periodically.

Annuity interest help investors plan for retirement income since the annuitant knows how much they expect to receive upon maturity of the policy. Knowing how to calculate the value of an annuity can also help investors to consider other investment options.

An assumed interest rate that is determined by the insurance company. This is the value of the annuity account and the annuitant should not be paid below the value of this rate. The actual interest rate is the actual performance of the investment in the market. If this rate increases, then the value of payment to be made to the annuitant also increases.

In our case, the actual performance of the separate account is actually higher than the assumed interest by 1 % this means that K will be paid 1% more on the value of his/her annuity account.

4 0
3 years ago
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be
In-s [12.5K]

Answer: Machine B because it has the lower Present Value

Explanation:

<h2>Machine A</h2>

= Present Value of income - Present Value of Costs

Present value of Income;

Sold for $5,000 after 10 years.

= 5,000/ (1 + 8%)^10

= $2,315.97

Present Value of Costs;

Purchased for $48,000.

Maintenance of $1,000 per year for  years.

Present value of maintenance= 1,000 * Present value factor of annuity,  10 years, 8%

= 1,000 * 6.7101

= $6,710.10

Machine A Present Value

= 2,315.97 - 6,710.10 - 48,000

= ‭-$52,394

<h2>Machine B</h2>

No salvage value.

Present Value of costs

Purchased for $40,000.

Present value of maintenance = (4,000 / (1 + 8%)^3)  + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)

= -$9,567.79

Present Value = -40,000 - 9,567.79

= -$49,568

5 0
3 years ago
Everfi <br> You have to match the boxes with the section
ANTONII [103]

Answer:

Needs : Frappuccino before work each day and winter coat

Wants: monthly loan payment and paying extra on the principal loan amount

Saving: rent on your apartment

8 0
2 years ago
Cost assignment ________. Group of answer choices includes future and arbitrary costs encompasses allocating indirect costs to a
Vika [28.1K]

Answer:

encompasses allocating indirect costs to a cost object

Explanation:

Cost assignment -

It refers to the distribution of the cost in various objects and activities which initiate the proper bifurcation of the costs , is referred to as cost assignment .

The method is used in the activity - based costing .

It is also known as cost allocation .

All the direct and indirect cost are allotted with the help of cost assignment .

Hence , from the given information of the question ,

The correct answer is -

encompasses allocating indirect costs to a cost object .

4 0
3 years ago
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