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2 years ago

Banks are a stabilizing force in our entire financial system. Discuss two of the three primary function of the banking system.

1 answer:

7 0

Answer: Banks transfer money from savers to borrowers by holding deposits and lending excess reserves. Banks also create money by making loans of excess reserves.

Explanation: Those are two primary functions.

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'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will i

olchik [2.2K]

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is false because a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.

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3 years ago

A corporate bond currently yields 8.5%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At wha

max2010maxim [7]

Answer: 35.29%

Explanation:

Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.

5.5% = 8.5% * ( 1 - x)

5.5% = 8.5% - 0.085x

0.085x = 8.5% - 5.5%

0.085x = 3%

x = 35.29%

6 0

3 years ago

A company declared and paid a cash dividend. The dividend would appear on the company's statement of cash flows as: Select one:

Kisachek [45]

Answer:

d. a deduction under financing activities.

Explanation:

As if the company declared and paid the cash dividend so the same is to be considered in the financing activities of the cash flow statement.

This amount should be shown in the negative amount as it decreases the cash that means it is an outflow of cash

Hence, the correct option is d. and the same is to be considered

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2 years ago

If Sasha works for 6 hours she can rent

zloy xaker [14]

Based on the number of apartments that Sasha can rent at 6 and 7 hours, her marginal benefit in the 7th hour is 3 apartments.

<h3>What is Sasha's marginal benefit?</h3>

This refers to the additional number of benefits that Sasha gets when she works an extra hour.

As a result of working one extra hour from 6 hours to make it 7 hours, the additional benefit Sasha gets is:

= 12 - 9

= 3 apartments.

Find out more on marginal benefits at brainly.com/question/11937697.

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2 years ago

Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the

Bess [88]

Answer:

Joy Tucker

Indication of the effect of each transaction and the balances after each transaction:

1. Opened a business bank account with a deposit of $36,000 in exchange for common stock.

Assets increased + $36,000 (Cash $36,000) = Liabilities + Equity increased + $36,000 (Common stock $36,000)

2. Purchased office supplies on account, $1,800.

Assets increased + $1,800 (Cash $36,000, Supplies $1,800) = Liabilities increased + $1,800 (Accounts payable $1,800) + Equity (Common stock $36,000)

3. Received cash from fees earned for managing rental property, $6,750.

Assets increased + $6,750 (Cash $42,750 , Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity increased + $6,750 (Common stock + $36,000 + Retained Earnings $6,750)

4. Paid rent on office and equipment for the month, $5,000.

Assets decreased - $5,000 (Cash $37,750, Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity decreased - $5,000 (Common stock + $36,000 + Retained Earnings $1,750)

5. Paid creditors on account, $1,375.

Assets decreased - $1,375 (Cash $36,375, Supplies $1,800) = Liabilities decreased - $1,375 (Accounts payable $425) + Equity (Common stock + $36,000 + Retained Earnings $1,750)

6. Billed customers for fees earned for managing rental property, $9,500.

Assets increased +$9,500 (Cash $36,375, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity increased +$9,500 (Common stock + $36,000 + Retained Earnings $11,250)

7. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.

Assets decreased -$1,800 (Cash $34,575, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,800 (Common stock + $36,000 + Retained Earnings $9,450)

8. Paid office salaries, $3,600.

Assets decreased -$3,600 (Cash $30,975, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,600 (Common stock + $36,000 + Retained Earnings $5,850)

9. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.

Assets decreased -$1,450 (Cash $30,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,450 (Common stock + $36,000 + Retained Earnings $4,400)

10. Paid dividends, $3,000.

Assets decreased -$3,000 (Cash $27,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,000 (Common stock + $36,000 + Retained Earnings $1,400)

Explanation:

The above transactions show their effects on the accounting equation, which states that assets = liabilities + equity. Each transaction has some effects on the assets with equal effects on either the liabilities or equity. This implies that the equation is always in balance. It is the basis of the double-entry system of accounting.

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2 years ago