Answer:
Reserves fall by $2 million, and the monetary base falls by $2 million.
Explanation:
In the books of First National Bank, the purchase of $2 million of bonds by First National Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.
In the books of the Federal Reserve, The sales of bonds to First National Bank will create a liability from the reserve assets.
See attached for the T-accounts explain the answer
Answer:
$1,505,000
Explanation:
Net income is the earning by the business calculated by deducting all the expenses from the revenue for the period. It is the earning which is available to distribute in the stockholders of the business. The preferred dividend must be paid if there is a profit in the period. The residual amount after deducting profit is available of common shareholders.
Net Income = $1,750,000
Preferred Dividend = $245,000
Income available for Common stockholders = Net Income - Preferred dividend
Income available for Common stockholders = $1,750,000 - $245,000
Income available for Common stockholders = $1,505,000
Answer:
An Accrued Receivable transaction
Explanation:
Before the receipt of cash recording a revenue is the example of accrued receivable because product is sold or services are already been performed on which basis transaction is occurred and recorded. So, the receivable is recorded against the revenue entry.
The journal Entry for this transaction will be as follow
DR. Account receivable xxx
CR. Revenue xxx
<span>1.
1.
1.A Better Life - The ability to provide a better life for my son, than the one my parents were able to give to me. At least in terms of not having to want for things, education and the ability to travel.
2. Status - Lifestyle status is a massive thing where we live, and we chose to live in our area for easier access to better schools, convenience shopping, higher quality food shops and restaurants.
3. Health - Being able to provide quality Health and Medical Insurance for my family is much more important than the actual salary. As long as my family are well covered we feel much more safe and stable.
4. Salary - Having enough to cover our needs and a bit extra has a great sense of satisfaction and the idea of a safety net is very nice.
5. Holidays - Just being able to go to a different place on holiday or to visit family at least twice a year is extremely important.
6. Stability - To be able to buy and have he things that you want, when you want them. Not to think how this may damage your savings etc.</span>
Answer:
c. Internal benefits are less than external benefits
Explanation:
Lets first understand what a positive externality is. Positive externality is the effects of an activity that has greater and/or additional benefits to the society as a whole as compared to the benefits enjoyed by the individual responsible for creating such a positive impact. One of the common examples of positive externality is getting education, when we get education that provides us benefits on a personal level but it also helps you reach to a position where you can educate others and/or the society in general. This means that educating yourself not only benefits you but also has a positive influence in the society.
Similarly, if you walk to work every day, this will make you more healthy and will reduce congestion in the city and benefit every body else as well.
