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Allushta [10]
2 years ago
6

Allen deposits $2,000 in his local bank. He earns 2 percent interest each year on his deposit. Jessica borrows $1,000 from the s

ame bank. She is charged a 7 percent interest rate on the borrowed money. How do these bank practices affect the money supply in the community?
A. In Allen's case, but not Jessica's, the money supply decreases.

B. In both Allen's and Jessica's cases, the money supply decreases.

C. In Jessica's case, but not Allen's, the money supply stays the same.

D. In neither Jessica's nor Allen's case does the money supply increase.
Business
2 answers:
Zarrin [17]2 years ago
8 0
A is the correct answer
Yanka [14]2 years ago
6 0

Answer:

A is the correct answer,

Explanation:

I got it right on the test

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Which of the following is one of the seven steps organizations go through when considering a major training initiative?
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The answer is B. Hire employees

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Angelina will be traveling worldwide as a goodwill ambassador for a nonprofit organization. She is asked to gather information a
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Practice active listening and respect for one another's cultures as this will help to minimize any listening faults brought on by cultural differences.

<h3>How does active listening work?</h3>

Active listening is the process of preparing to listen, monitoring the verbal and nonverbal cues being used, and then responding appropriately to show that you are paying attention to what is being said.

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6 0
1 year ago
Corporation ABC invested in a project that will generate $60,000 annual after-tax cash flow in years 0 and 1 and $40,000 annual
EleoNora [17]

Answer:

a. $204,940

b.$214,180

c. $224,480

Explanation:

a. Computation for the NPV of these cash flows assuming that ABC uses a 10 percent discount rate.

NPV= $60,000 + 0.909($60,000) + 0.826($40,000) + 0.751($40,000) + 0.683($40,000)

NPV=$60,000+$54,540+$33,040+$30,040+$27,320

NPV = $204,940

Therefore the NPV of these cash flows assuming that ABC uses a 10 percent discount rate is $204,940

b. Computation for the NPV of these cash flows assuming that ABC uses a 7 percent discount rate.

NPV=$60,000 + 0.935($60,000) + 0.873($40,000) + 0.816($40,000) + 0.763($40,000)

NPV=$60,000+$56,100+$34,920+$32,640+$30,520

NPV= $214,180

Therefore the NPV of these cash flows assuming that ABC uses a 7 percent discount rate is $214,180

c. Computation for the NPV of these cash flows

assuming that ABC uses a 4 percent discount rate.

NPV=$60,000 + 0.962($60,000) + 0.925($40,000) + 0.889($40,000) + 0.855($40,000)

NPV=$60,000+$57,720+$37,000+$35,560+$34,200

NPV= $224,480

Therefore the NPV of these cash flows

assuming that ABC uses a 4 percent discount rate is $224,480

8 0
2 years ago
Which of the following statements accurately describes the alternative minimum tax rate(s)?The top AMT marginal rate is higher t
kogti [31]

Answer:

The AMT rates represent a progressive tax rate structure.

Explanation:

"AMT is designed to prevent taxpayers from escaping their fair share of tax liability through tax breaks. However, the structure was not indexed to inflation or tax cuts. This can cause bracket creep, a condition in which upper-middle-income taxpayers are subject to this tax instead of just the wealthy taxpayers for whom AMT was invented. In 2015, however, Congress passed a law indexing the AMT exemption amount to inflation."

Reference: Kagan, Julia. “Alternative Minimum Tax (AMT) Definition.” Investopedia, Investopedia, 10 Sept. 2019

7 0
3 years ago
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