Formula for money multiplier is :

thus
reserve ratio= 20% = 0.20
money multiplier = 1÷0.20= 5
Money multiplier shows the extent to which the money supply is affected by any change in the deposit amount.
Answer:
a. measure the amount of debt the firm uses.
Explanation:
In simple words, the debt management stated the management of the debt that reflects the agreement with the unsecured creditors stating the time period. It usually happens with a motive for an extended period of time, so that he or she can have more time to repay their debt.
After extending the time period, the payment is made on the installment on a regular basis to the company that manage the debt.
Answer:
$30,000 under applied
Explanation:
For computing the over applied or under applied, first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated machine hours)
= $1,200,000 ÷ 300,000 hours
= $4
Now we have to find the applied overhead which equal to
= Actual machine hours × predetermined overhead rate
= 280,000 × $4
= $1,120,000
So, the ending overhead equals to
= Actual manufacturing overhead - applied overhead
= $1,150,000 - $1,120,000
= $30,000 under applied
The preparation of the CVP graph requires drawing a line representing the total revenue, total expense, and total fixed expense.
<h3>
What is the CVP Graph?</h3>
The CVP Graph, also known as a cost volume profit chart, is a graphical illustration that depicts the link between production costs and overall revenues.
The CVP graph is used by businesses to determine the possible impact of changes in volume sales on production process costs and total earnings.
In this scenario, the graph considers the total revenue, total expense, and total fixed expense.
Learn more about the CVP graph here:
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