Answer:
The correct option is d)
bank failures reduce the money supply, increase the interest rate and cause high inflation .
The correct option for the second question is a)
caused partly by the increase in government spending including spending to bail out failed financial institutions and by the deep decline in tax revenues as incomes and profits fell.
Explanation:
The recessions accompanied by a financial crisis are more severe than recessions that do not involve bank crises because ;
bank failures reduce the money supply, increase the interest rate and cause high inflation.
The large budget deficits of $1.4 trillion in fiscal year 2009 and $1.3 trillion in fiscal year 2010 were
;
caused partly by the increase in government spending including spending to bail out failed financial institutions and by the deep decline in tax revenues as incomes and profits fell.
Answer:
given statement is false
Explanation:
solution
the given statement is false because here Double Taxation meaning that income are taxed in the hand of corporation and then in the hand of shareholders
when dividends is distributed that does not meaning that the corporation pay double the tax of partnerships
so we can say given statement is false
Answer:
Explanation:
The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate increases banks' incentives to borrow reserves from the Federal Reserve, thereby increasing the quantity of reserves in the banking system and causing the money supply to rise.The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the Federal Reserve uses open-market operations to sell government bonds, the quantity of reserves in the banking system increases banks' demand for borrowed reserves declines, and the federal funds rate decreases
Answer:
Net Book Value of furniture:
= Cost price - Accumulated depreciation
= 8,000,000 - 7,700,000
= $300,000
a. $300,000 cash
Account Title Debit Credit
Cash $300,000
Accumulated Depreciation $7,700,000
Furniture $8,000,000
b. $900,000 cash
Account Title Debit Credit
Cash $900,000
Accumulated Depreciation $7,700,000
Furniture $8,000,000
Gain on disposal $600,000
c. $100,000 cash
Account Title Debit Credit
Cash $100,000
Accumulated Depreciation $7,700,000
Loss on Disposal $200,000
Furniture $8,000,000
Answer:
c. $1,300 gain
Explanation:
In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.
$7,300 - $6,000 = $1,300
