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zepelin [54]
3 years ago
9

Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve

ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of
Business
1 answer:
ludmilkaskok [199]3 years ago
3 0

Answer: $50000

Explanation:

Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:

= $4500 - (10% × $40000)

= $4500 - $4000

= $500

Then, the money supply that's expanded will be:

= Excess reserve / Reserve ratio

= $5000 / 10%

= $5000 / 0.1

= $50000

Therefore, the answer is $50,000.

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enot [183]
States dont collect income tax the government does so B
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2 years ago
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XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fi
Anuta_ua [19.1K]

Answer:

increase in income  of $80

Explanation:

Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.

Note : The  fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.

<u>Analysis of Costs and Savings</u>

Purchase Price (400 widgets × $44.00)  =    ($17,600)

Savings :

Variable Costs ($35.60 × 400 widgets)   =     $14,240

Fixed Cost ( $8.60 × 400 widgets)           =      $3,440

Net Income effect                                      =           $80

Conclusion :

The effect on net income if the company instead buys the widgets is an increase in  income  of $80

3 0
3 years ago
What is round to the nearest 10.000?​
liraira [26]
If the number is 12,759 and they ask to round to the nearest 10,000 then you look at the thousands place (where the 2 is) and is its less than 5 round down and if its more round up. so the answer would be 10,000
7 0
3 years ago
The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price
Slav-nsk [51]

Answer:

BUDGET LINE

Explanation:

Budget Line is graphical representation of product combinations that a consumer can buy, given product prices & income (all spent)

It is downward sloping because of inverse relationship between goods - one good's consumption has to be decreased to increase other good's consumption, given same prices & income.

Budget Line Equation : x.px + y.py = m

[x = quantity of good x, px = price of good x, y = y good quantity, py = good y price, m = money income].

Slope of Budget line is : Amount of a good sacrifised to attain the other good, given same prices & income. The sacrifise ratio gets derived from the price ratios of the two goods.

Budget Line Slope = ΔY / ΔX = PX / PY

5 0
3 years ago
Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized as a sole proprietorship and own
yanalaym [24]

Answer:

a) Increase asset (Cash): Increase equity (Service Revenue) - GUIDE

b) Decrease equity (Salaries): Decrease asset (Cash)

c) Increase asset (Cash): Increase equity (Capital)

d) Increase asset (Receivable Accounts): Increase equity (Service Revenue)

e) Decrease equity (Utility): Increased liabilities (Others payable accounts)

f) Decrease equity (Capital): Decrease assets (Cash)

Explanation:

Accounting Equation Formula :

Assets = Liabilities + Equity

According to the formula transactions must be recorded  as follows:

<em>DEBIT:</em> Asset increases, Liabilities decreases, and Equity decrease.

<em>CREDIT:</em> Asset decreases, Liabilities increases, and Equity increase.

3 0
3 years ago
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