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elena-s [515]
2 years ago
9

The currency in Macroland is called econs. In Macroland, the public holds 2,000 econs in currency; commercial bank reserves are

300 econs; and the desired reserve-to-deposit ratio of the commercial banks is 10%. If the Central Bank of Macroland prints an additional 200 econs and uses this new currency to buy government bonds from the public, the money supply in Macroland will ____, assuming that the public does not wish to change the amount of currency it holds from before.
Business
1 answer:
DiKsa [7]2 years ago
4 0

Answer:

D)5,000; 7,000

Explanation:

The computation is shown below:

The total bank deposit would be

= (300 ÷ 0.10) + 2,000

= 3,000 + 2,000

= 5,000

In the case when the reserve ratio is 10% so the money multiplier would be 10

Since there is extra inflow of currency so by having the multiplier effect it would be 2000 econs

Now first it is 5,000 econ than it would become 7,000 econ

If there is an additional inflow of currency because of printing 200 econs by central bank then because of multiplier effect it will be 2000 econs.

Money supply from earlier 5000 econs will become 7000 econs.

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Answer:

(D) decrease revenues and decrease assets

Explanation:

Since the revenue is unearned, its entry in the books needs to be reversed.

When a revenue was recorded in the books, the like journal entry would have been.

Debit Cash/Bank/Receivables Account (thus increasing asset)

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The purpose of cascading the balanced scorecard throughout the organization is: _____________
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Answer:

b. To ensure strict hierarchical control of the organization.

6 0
2 years ago
The Nearside Co. just paid a dividend of $1.20 per share on its stock. The dividends are expected to grow at a constant rate of
masha68 [24]

Answer and Explanation:

The computation is shown below:

a. Current price is

= D1 ÷ (Required return - Growth rate)

= ($1.20 × 1.04 ÷ (0.1 - 0.04)

= $20.8

b. Now the price in three year is

P3 = Current price × (1 + Growth Rate)^3

= $20.8 × (1.04)^3

= $23.40

c. For price in 10 year it is

P10 = Current price × (1 + Growth Rate)^10

= $20.80 × (1.04)^10

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We simply applied the above formula

6 0
3 years ago
Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities
loris [4]

Answer:

the cash inflow from the sale of securities is $7,000

Explanation:

The computation of the cash inflow from the sale of securities is shown below:

= Opening balance + purchase marketable securities + gain on the sale of marketable securities - ending balance

= $86,000 + $10,000 + $1,000 - $90,000

= $97,000 - $90,000

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hence, the cash inflow from the sale of securities is $7,000

8 0
3 years ago
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