Answer: The reserve ratio
Explanation: The money multiplier of a commercial bank is the reciprocal of it's reserve ratio. The multiplier helps commercial banks to know how they can increase money supply. The reserve ratio is used to name a certain percentage of a commercial banks deposit which the central bank mandates it to keep as reserve.
Thus:
Multiplier = 1 / reserve ratio
For instance, if reserve ratio is 10%
Multiplier = 1 / 0.1
Multiplier = 10
Therefore, in this scenario, a commercial bank can increase its spending supply by a multiple of 10.
Answer: See explanation
Explanation:
• Natural resources occur in the environment.
This is true. In our environments, we can see natural resources. They include coal, tin, limestone, iron ore etc.
• Example of services are teaching, banking, insurance, tailoring etc. In an economy, services are regarded as the intangible parts as they can't be touched. It is an important part of every nation.
• Example of goods are clothes, pens, cars etc.
Goods are physical and tangible items. They include laptops, chairs, phones etc.
• A renewable resource cannot be exhausted.
This is true. A renewable resource cannot be exhausted e.g. sunlight.
Answer:
$1,027.01
Explanation:
We use the present value formula for this question. The attachment is shown below:
Given that,
Assuming Future value = $1,000
Rate of interest = 6.75%
NPER = 20 years
PMT = $1,000 ×7% = $70
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the fair price of the bond is $1,027.01
Answer:
1 Plum company has paid USD 7500 for management service to be performed for next two year to be treated as prepaid on the date of payment i.e. July 1
2 Payment made on July 1 for two year means for coming 24 months.
3 Hence USD 7500/24 equals to USD 312.5 which should be charged in Expense account on monthly basis.
4 Period Between July to December is of 6 months
5 Hence the amount to be transferred to expense account would be USD 312.5*6 equivalent to USD 1875
6 Hence E would be correct choice for adjustment entry of prepaid
Answer:
a. is liable to purchasers as a manufacturer/seller of toys.
Explanation:
Mattel is the producer of the toys even if it was it's manufacturer in China that made the toys. Using lead paint can lead to poisoning of children. So the toys produced can be considered to be harmful and defective.
The manufacturer of a product has a product liability on every good delivered to the consumer. Product liability is that borne by the manufacturer of a good for putting defective product in the hand of the consumer.
So for any damage or health issues that come up as a result of use of the toys, Mattel is liable.
