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murzikaleks [220]
3 years ago
12

Black Horse deposits $2,000 in cash in his checking account at Bank for the People of West Dakota. The reserve requirement is 25

%. Which is the maximum expansion of the money supply possible from the original deposit?
a. $2,000
b. $4,000
c. $6,000
d. $8,000
Business
1 answer:
AfilCa [17]3 years ago
6 0

Answer:

d. $8,000

Explanation:

Reserve requirement = 25% = 0.25

The money multiplier = 1 /Required reserve

The money multiplier = 1/0.25

The money multiplier = 4

The initial deposits = $2,000

The maximum possible expansion of deposits = Initial deposits * The money multiplier  = $2,000 * 4 = $8,000. Thus, the maximum expansion of the money supply possible from the original deposit is $8,000

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AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.50 per unit and a selling price of $1.40
Sedaia [141]

Answer: Yes. AudioCable should buy a new equipment

Explanation:

Audiocables Inc. without new equipment:

Selling price: $1.40

Variable cost: $0.50

Fixed cost: $14,000

Sales: 30000 units

Total cost = Fixed cost + Variable cost

= $14000 + ($0.50 × 30000)

= $14000 + $15000

= $29000

Revenue = Sales × Selling price

= 30000 × $1.40

= $42000

Profit = Revenue - Total Cost

= $42000 - $29000

= $13000

Audiocables Inc. with new equipment:

Selling price: $1.40

Variable cost: $0.60

Fixed cost: $14,000 + $6000 = $20000

Sales: 50000 units

Total cost = Fixed cost + Variable cost

= $20000 + ($0.60 × 50000)

= $20000 + $30000

= $50000

Revenue = Sales × Selling price

= 50000 × $1.40

= $70000

Profit = Revenue - Total Cost

= $70000 - $50000

= $20000

From the calculations made, AudioCable buy a new equipment as profit generated is more.

5 0
3 years ago
The multiplier is useful in determining the full-employment unemployment rate level of business inventories change in the rate o
sasho [114]

Answer:

The multiplier is useful in determining the change in GDP resulting from a change in spending

Explanation:

A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.

7 0
3 years ago
Convert the following temperature to Celsius scale (a) 450 k, (b) 273 k, (c) 73 k.​
masya89 [10]

Answer: See explanation

Explanation:

To convert to Celcius scale from Kelvin, the formula to use is:

Temperature in Celcius = Temperature in Kelvin - 273

a. 450k

Temperature in Celcius = Temperature in Kelvin - 273

= 450 - 273

= 177°Celcius

(b) 273 k

Temperature in Celcius = Temperature in Kelvin - 273

= 273 - 273

= 0°C

(c) 73 k

Temperature in Celcius = Temperature in Kelvin - 273

= 73 - 273

= -200°C

6 0
3 years ago
On April 1, Garcia Publishing Company received $32,580 from Otisco, Inc. for 36-month subscriptions to several different magazin
Oksi-84 [34.3K]

Answer: Debit Unearned Fees, $8,145; Credit Fees Earned, $8,145.

Explanation:

The $32,580 are for 36 months so the amount per month would need to be calculated.

= 32,580/36

= $905

The subscriptions were paid on the 1st of April which means that only 9 months (April to December) of the first year will have revenue recognized for them.

= 905 * 9

= $8,145

Correct entry would be to debit the Unearned fees account as it is a liability that needs to reduce to reflect that fees have now been recognized.

Credit the Fees Earned account to recognize revenue.

Debit Unearned Fees, $8,145; Credit Fees Earned, $8,145.

4 0
3 years ago
In gathering audit evidence, the accessibility of information may be a factor thereby influencing which judgment trigger
bazaltina [42]
The answer is availability
8 0
2 years ago
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