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2 years ago

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

Business

1 answer:

Flauer [41]2 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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At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) b

meriva

Answer:

$6,540

Explanation:

Given:

accounts receivable of $238,000

allowance for uncollectable accounts of $600 (credit)

Also, the allowance for uncollectible accounts should be 3% of accounts receivable.

Therefore the amount of the adjustment for uncollectible accounts would be

= 3% of $238,000 - $600= $(7140-600)= $6,540

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3 years ago

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pychu [463]

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2 years ago

Read 2 more answers

The Work in Process Inventory account of a manufacturing company has a $3,550 debit balance. The company applies overhead using

DanielleElmas [232]

Answer:

$1,070

Explanation:

Calculation to determine the amount of applied overhead is:

Using this formula

Applied overhead = Total cost of WIP - Direct materials - Direct labor

Let plug in the formula

Applied overhead= $3,550 - $1,610 - $870

Applied overhead=$1,070

Therefore the amount of applied overhead is:$1,070

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2 years ago

when a firm with market power produces less than the socially efficient level of output, there would be to society of producing

Hoochie [10]

A company with market power produces much less than the socially efficient level of output, there would be to society of producing one more unit: The boom or lower inside the total production cost if the output of one unit is extended is the marginal cost of manufacturing.

Market power refers to the capacity of a company (or organization of firms) to elevate and preserve a rate above the extent that would be triumphant under opposition and is referred to as market or monopoly energy. The workout of marketplace energy leads to reduced output and a lack of economic welfare.

In economics, market power refers to the potential of a firm to steer the rate at which it sells products or services by means of manipulating either the supply or demand of the services or products to grow monetary profit.

An instance of market power is Apple Inc. within the smartphone marketplace. although Apple cannot absolutely manage the market, its iPhone product has a big amount of market proportion and consumer loyalty, so it has the ability to have an effect on average pricing inside the smartphone marketplace.Monopoly/marketplace electricity. is wherein one vendor dominates the marketplace, can control fees & prevent new competition from entering the market? Externalities. correct or terrible aspect impact of manufacturing or intake which influences folks that aren't directly worried.

Learn more about market power here: brainly.com/question/16180053

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1 year ago

Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?

vitfil [10]

Answer:

Exception reporting

Explanation:

Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?

Drill down

Key performance indicators

Status access

Trend analysis

Exception reporting

Dashboard reporting is a process used to represent key performance indicators and relevant business data in a visual and interactive way and Exception reporting is a method of data analysis that compares an incoming stream of data to an established base set of data and flags items that don't quite match i.e,those instances in which actual performance deviated significantly from expectations and it enables users to have reports that highlight deviations larger than certain thresholds.

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