Answer:
Monetary policy instruments:
(a) Reserve requirements:
It is the part or portion of the deposits with the banks that have to be kept with the fed. If this reserve ratio increases then as a result money supply decreases because now banks have to keep more funds with the fed.
(b) Open market operations:
It is a monetary policy instrument used by the Federal reserve for controlling the money supply in an economy. When there is a need to increase the money supply then fed purchases the government securities from the public and vice versa.
(c) Discount rate:
It is the interest rate at which federal reserve lends money to the banks. If there is an increase in this rate then banks have to pay higher interest to the fed. This will reduce lending capability of the banks and hence, decreases the money supply.
Answer:
- A. Working capital will remain the same at $18,964,118
- C. Chesters' long-term debt will rise by $9,000,000
- E. Total liabilities will be $139,957,573
Explanation:
You included no balance sheet for Chester so I will answer based on inference.
Option A is most likely correct because Working capital relates to Current Assets less Current liabilities so Plant and Equipment (fixed assets) and bonds (long term liabilities) will not affect it.
Total assets rising to $235,525,291 is also quite possible if the assets were previously $225,525,291 so just check for that but this is most likely correct.
Option C is wrong because the long term debt should rise by $10,000,000 which is the value of the bonds.
Option D is wrong as well as this relates to long term bonds not investment by shareholders.
Total liabilties rising is probably correct if the current figure on the balance sheet is $129,957,573 because that would mean that it increased by $10,000,000 which is the price of the bond.
So just check your given balance sheet for Options C and E for my notes and if correct, they are your answers as well as A.
Answer:
Option A is false statement among these.
<u>The actual wage rate is almost always different from the standard rate</u>
Explanation:
The actual wage rate paid and standard rate established can be different causing the labour rate variance.
Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production. There are two kinds of labour variances. Labour Rate Variance is the difference between the standard cost and the actual cost paid for the actual number of hours.
Answer:
$19,000
Explanation:
appreciation is the difference between the price at which the house was bought and the price at which the house was sold
$267,000 - $115,000 = $152,000.
Average annual appreciation = $152,000 / 8 =$19,000