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3 years ago

1. The discount rate is the interest rate the Fed charges on loans of reserves to banks.

Business

1 answer:

krek1111 [17]3 years ago

7 0

Answer:

1. True.

2. True.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

1. The discount rate is the interest rate the Fed charges on loans of reserves to banks.

2. The federal funds rate is the interest rate banks charge for overnight loans of reserves to other banks.

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during the 1980's, the price of one share of Johnson and Johnson stock rose from $17 1/4 to $56 1/8. how much money would you ha

Andre45 [30]

Given:

Price of one share in 1980 = $ $17\dfrac14$

Price of one share in 1989 = $ $56\dfrac18$ .

To find:

How much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Explanation:

Using the given information,

Change in the value of each share = $56\dfrac18-17\dfrac14$

= $\dfrac{448+1}{8}-\dfrac\dfrac{68+1}{4}$

= $\dfrac{449}{8}-\dfrac\dfrac{69}{4}$

= $\dfrac{449-138}{8}$

= $\dfrac{311}{8}$

Value of one share increased by $ $\dfrac{311}{8}$ .

Value of 100 shares increased by = $100\times \dfrac{311}{8}$

= $\dfrac{31100}{8}$

= $\dfrac{7775}{2}$

= $3887.5$

Therefore, you would have made $3887.5 if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989.

4 0

3 years ago

Which inventory counting system keeps track of removals from inventory on a continuous basis?

Natalija [7]

I think it’s the continual system

8 0

3 years ago

Bailliere Company recorded cash sales of $300,000 and cost of goods sold relating to those sales of $120,000 on its Excel spread

dezoksy [38]

Answer:

Option B

Cost of goods reported =$ 125,000

Explanation:

Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

The under applied overhead implies that the applied overhead is less than the actual overhead.

This implies that the cost of the goods are under valued. Hence, to accurately valued them, the under applied overhead would be added to the cost of the goods.

Cost of goods reported = cost of goods + under applied overhead

= 120,000 + 5,000 = 125,000

Cost of goods reported =$ 125,000

6 0

3 years ago

Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12

AfilCa [17]

Answer:

$3.76

Explanation:

Calculation of the implied value of each warrant

First step is to find the straight-debt value

Straight-debt value:

N = 20

I/YR = 15

PMT = −120

FV = −1000

PV = $812.22

Using this formula

Total value = Straight-debt value + Warrant value

Where,

Total value =$1,000

Straight-debt value=$812.22

Warrant=50

Let plug in the formula

$1,000 = $812.22 + 50

Second step is to find the warrant value

Warrant value= ($1,000 −$812.22)/50

=$187.78/50

=$3.7556

Approximately $3.76

Therefore the implied value of each warrant will be $3.76

4 0

3 years ago

Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opene

Sergeu [11.5K]

Answer:

Final value= $287,663.01

Explanation:

Giving the following information:

If the account balance is less than or equal to $20,000, interest for the next annual period is 7% compounded annually.

If the account balance is greater than $20,000 but less than or equal to $40,000, interest for the next annual period is 10%/year compounded quarterly.

If the account balance is greater than $40,000, interest for the next annual period is 12%/year compounded monthly.

You decide to open an account under these terms today with $11,600.

We need to calculate the time required for the initial investment to reach each limit until the 27 years have passed.

We will use the following formula:

n= ln(FV/PV) / ln(1+i)

First, the number of years to reach $20,000

n= ln(20,000/11,600) / ln(1+0.07)

n= 8.05 years

In the firsts 9 years the account will be invested at a 7% interest rate.

FV= PV*(1+i)^n

FV= 11,600*(1.07)^9

FV= $21,326.13

Now, we need to calculate the number of quarters required to reach $40,000.

i= 0.10/4= 0.025

n= ln(40,000/21,326.13) / ln(1.025)

n= 25.4 quarters

n= 7 years= 28 quarters

FV= 21,326.13*(1.025^28)

FV= $42,577.51

Finally, the 16 years left at a 12% interest rate compounded monthly.

n= 16*12= 192

i= 0.12/12= 0.01

FV= 42,577.51*(1.01^192)

FV= $287,663.01

5 0

3 years ago