Answer:
B) reserves lost by any particular bank will be gained by some other bank.
Explanation:
Banks "create" money when they make loans or buy securities from private parties. This money creation is the result of the money multiplier = 1 / reserve ratio.
This money creation process is not affected by which specific bank may hold the deposits, since money withdrawn from a bank will end up in another bank. The money multiplier applies to the whole banking system, not just an individual bank or group of banks.
Answer:
The journal entry to record this note collection carried out by the bank should be:
Dr Cash 21,200
Cr Notes receivable 20,000
Cr Interest revenue 1,200
Explanation:
Notes receivable is an asset account and it probably represented a sale made on credit by the company, so when it was collected, the amount should decrease and that is done by crediting it.
On the other hand, since only $20,000 belonged to the note, the rest ($1,200) must be recorded as interest revenue. Revenues are always credited.
Marketers use this kind of data validation:
A. time series sales model
Explanation:
The time series sales model usually works for marketing campaigns because ultimately the marketeer wants to understand how many sales are being converted from primary and secondary sources.
This then leads to the cost and result assessment of the firm.
So, the time series sales model tells when how many sales are being done with some semblance of a filter for the secondary sources from the data of the marketer that they would have.
Answer:
total fixed cost= 90,000
Explanation:
Giving the following information:
A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. The variable costs per unit are $5.
The pretax income is calculated using the following formula:
Pretax income= total contribution margin - total fixed cost
60,000= 25,000*(11 - 5) - total fixed cost
60,000 - 150,000= - total fixed cost
total fixed cost= 90,000
