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bearhunter [10]
3 years ago
9

In a fractional-reserve banking system with no excess reserves and no currency holdings, if the central bank buys $100 million w

orth of bonds, a. both reserves and the money supply increase by more than $100 million. b. reserves increase by $100 million and the money supply increases by $100 million. c. reserves increase by $100 million and the money supply increases by more than $100 million. d. reserves and the money supply increase by less than $100 million.
Business
1 answer:
NARA [144]3 years ago
4 0

Answer:

c. reserves increase by $100 million and the money supply increases by more than $100 million

Explanation:

Based on the information given in a situation where a FRACTIONAL-RESERVE BANKING SYSTEM has no availability of EXCESS RESERVES and no CURRENCY HOLDINGS, which means that if the central bank buys BONDS that worth $100 million, the RESERVES will tend to INCREASE by the amount of $100 million while the MONEY SUPPLY on the other hand will INCREASES by more than $100 million.

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True or false: Subsection (d) under section 10 of the Federal Arbitration Act requires the court to review the merits of every c
Vanyuwa [196]

It is a  <u>False </u>statment to say that subsection (D) of section 10 of the Federal Arbitration Act mandate that the court review the merits of every construction of a contract. The act speaks to Arbitration.

<h3>What does the Federal Arbitration Act of the United States of America say?</h3>

Subsection (D) of section 10 of the above stated Act state that the United States Court would vacate an award upon application by any of the party to the arbitration:

<em>Where the arbitrators exceeded their power or so imperfectly executed them that a mutual, final and definite award upon the subject matter submitted was not made.</em>

See the link below for more about Arbitration:

brainly.com/question/1139969

5 0
2 years ago
Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?
morpeh [17]

Answer:

C) A 25% increase in sales resulting in a 30% increase in net operating income.

7 0
3 years ago
Identify the internal control weakness in the following situations. State how the person can hurt the company.
Degger [83]

Answer:

Identification of the Internal Control Weaknesses:

A.  There is no segregation of duties and there is lack of access control.  Jerry Miller as a security guard is not expected to have a master key to the cash box.  With this he can pilfer the cash.  If he prepares the report that shows the number of cars that parked on the lot, he is not supposed to also prepare the day's cash receipts.  Otherwise, he can state any number of cars as parked that he likes, and which corresponds to the cash he might leave in the Cash box since he also has a master key.

B.  There is no segregation of duties and there is lack of supervision,  proper reconciliations, and assets audit.  Sharon Fisher handles purchase transactions from the beginning to the close all alone with a third party.  This exposes the company to procurement frauds and collusion with suppliers.  She can purchase assets for the company at prices that would enrich her personally.

C. Forming an audit opinion on the basis of ratio analysis of last year's comparative financial statements exposes the company to audit risks.  While ratio analysis is part of the basis for forming audit opinions, it is surely not the first audit procedure to obtain audit evidence to support his audit opinion on the financial statements.  An auditor is expected to obtain sufficient audit evidence and perform audit substantive tests of financial statement assertions.  He or she is also expected to review the internal control system to ensure that it is operating effectively after establishing its existence and reviewing changes in internal controls.

Explanation:

Internal Controls are controls established by management in order to help it achieve business goals.  There are many internal controls, including Separation of Duties, Access Controls , Authorization and Approvals, Asset Audits, Reconciliations, and Data Backups.  The purposes of internal controls are to establish the reliability of financial reporting, ensure timely feedback on the achievement of operational or strategic goals, and achieve compliance with financial management laws, and accounting regulations.

4 0
3 years ago
Riverside Ranch is a horse breeding facility. Dynasty Stables is a customer looking for a new stallion for its breeding program.
marshall27 [118]

Answer: a. an express warranty

Explanation:

An EXPRESS WARRANTY refers to spoken or written promises or guarantees made by the seller about the performance of a product when negotiating with a buyer.

For example, "this product is guaranteed against wear and tear for at least 2 years".

Roy Mustang in this scenario made an explicit promise about the effectiveness of the Stallion and as such that constitutes an EXPRESS warranty.

It is worthy of note that for Express Warranties, the word Warranty does not even need to be included for the promise to be a warranty.

5 0
3 years ago
On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $52 million at par and classified the securit
sineoko [7]

Answer:

Transaction gain = $16 million

Explanation:

Given:

Purchase amount = $52 million

December 31, 2021, bonds value = $46 million

October 3, 2022, bonds sold = $62 billion

Computation:

Using multi-step approach

Transaction gain = October 3, 2022, bonds sold - December 31, 2021, bonds value

Transaction gain = $62 million - $46 million

Transaction gain = $16 million

5 0
3 years ago
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