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kow [346]
3 years ago
12

The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of deposits.

Business
1 answer:
Flauer [41]3 years ago
4 0

Answer:

Quantity of money changes by $50,000,000

Explanation:

Desired reserve ratio = 10% = 0.1

Currency drain ratio = 1% = 0.01

Money multiplier = (1+0.1) / (0.1+0.01) = 1.1/ 0.11 = 10

Value of securities purchased = $5 million

Change in quantity of money :

$5 million * 10 = $50 million

Currency created : currency drain ratio * change in quantity of money

0.01 * $50,000,000 = $500,000

Amount of bank deposit = quantity change - currency created

= $50,000,000 - $500,000 = $4,500,000

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The following are common categories on a classified balance sheet. a) Current assets b) Long-term investments c) Plant assets d)
noname [10]

Answer:

Land not currently used in operations - Long-term investments

Notes payable (due in five years) - Long-term liabilities

Accounts receivable - Current assets

Trademarks - Intangible assets

Accounts payable - Current liabilities

Store equipment - Plant assets

Wages payable - Current Liabilities

Cash - Current assets

8 0
3 years ago
The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and tota
Darya [45]

Answer:

$250

This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.

Explanation:

Data provided in the question:

Price of tomato = $10

Equilibrium quantity = 50 tomatoes

Consumer surplus = $400

Total surplus = $650

Now,

The  producer surplus = Total surplus - Consumer surplus

= $650 - $400

= $250

This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.

3 0
3 years ago
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion t
lisov135 [29]

Answer:

1) equity = assets - liabilities

equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000

2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.

     

3) D’Lite Dry Cleaners

Income Statement

For the month ended July 31, 202x

Revenues                                                       $116,875

Expenses:

  • Dry cleaning expense $29,500
  • Rent expense $6,000
  • Wages expense $7,500
  • Truck expense $2,500
  • Supplies expense $3,600
  • Utilities expense $1,300
  • Miscellaneous expense $2,700           ($53,100)

Net income                                                      $63,775

D’Lite Dry Cleaners

Balance Sheet

For the month ended July 31, 202x

Assets:

Cash $95,325

Accounts receivable $89,750

Supplies $5,900

Land $125,000

Total assets $315,975

Liabilities:

Accounts payable $49,200

Equity:

Capital $266,775    

Total liabilities and equity $315,975

D’Lite Dry Cleaners

Statement of Owner’s Equity

For the month ended July 31, 202x

Palk, Joel, capital, beginning balance    $180,000

Additional capital raised                           $35,000

<u>net income                                                  $63,775</u>

subtotal                                                     $278,775

<u>drawings                                                   ($12,000)</u>

Palk, Joel, capital, ending balance        $266,775

Download pdf
3 0
3 years ago
Explain the stages involved in the recruitment of new staff into an organisation
tino4ka555 [31]

Answer:

1.)Recruitment Planning

(ii) Strategy Development

(iii) Searching

(iv) Screening

(v) Evaluation and Control.

Explanation:

The recruitment planning phase may involve the identifucatuonof position s which requires additional hands and the number required.

The strategic planning phase invokes coming up with the plans, form or dimension in which the recruitment process could take.

Searching : This may involve advert placement and acceptance of proposals or applications from interested applicants.

Screening : Thus step involves the vetting process of received applications in other it determine those suitable for the job.

Evaluation and Control : thus us often the final stage and may involve additional examination of screened applicants before the final recruitment and staffing.

4 0
3 years ago
uppose that an MBA degree creates no extemality because the benefits of an MBA are internalized by the student in the form of hi
Schach [20]

Answer:

A) The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs.

Explanation:

No government subsidies, no government taxes, no government anything = free markets = capitalism = fantasy world

Pure capitalism doesn't exist (only semi capitalistic economies), since governments exist and they regulate the economy, tax and transfer money, and spend.

But in a fantasy world where governments do not exist, then the equilibrium quantity of any good or service equals the socially optimal quantity. That applies to every single product or service.  

7 0
3 years ago
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