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3 years ago

Assets Liabilities and Net Worth

Business

1 answer:

KiRa [710]3 years ago

5 0

Answer:

The correct answer is $30 billions.

Explanation:

The checkable deposits are given as $140 billions.

The total reserves are $51 billions.

The required reserve rate is 30%.

The required reserves will be

=30% of $140 billions

= $0.3 \times 140$

=$42 billions

The excess reserves will be

=total reserves-required reserves

=$51-$42

=$9 billions

Maximum expansion by lending will be

= $\frac{excess reserves}{required \ reserve\ rate}$

= $\frac{9}{0.3}$

=$30 billions

So, the money supply can be expanded by a maximum amount of $30 billions.

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Pools purchased $ 60 comma 000 of 14% DMH bonds on January 1, 2018, at a price of 159.5 when the market rate of interest was

Damm [24]

Answer:

Initial purchase of the bonds on 1st January 2016

Assuming that $60,000 bonds includes 600 bonds with face value of $100 each

Now, Lamar insurance purchased these bonds at a discount price of $159.5 each bond.

So, the total amount invested by Lamar insurance = 600 bonds * $159.5 = $95,700

Therefore journal entry for recording purchase of bonds on 1st January 2016 will be,

Investments in bonds A/c Debit $95,700

To, Bank/Cash A/c credit $95,700

Note: The bonds have been issues at a discount and it seems to be reasonable owing to the fact that the market interest rate is 6% , whereas the bonds have a interest rate of 14%.

Interest entry on the first interest payment date of 1st July 2016

Interest amount to be received on 1st July 2016 = ($60,000 *14%)*6/12 = $4.200

Since interest is paid semi annually, therefore we have taken interest for 6 months.

Journal entry will be:

Bank A/c Debit $4,200

To, Interest on bonds A/c Credit $4,200

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3 years ago

The existence of different age groups within a company's target markets is referred to as

PolarNik [594]

Answer:

multigenerationalism.

Explanation:

Multigenerationalism is the term used to describe Marketing to different generations.

Only a few products will appeal to all age groups. A company will develop a variety of products to attract diverse age groups. A Single product firm or one with few products may differentiate its goods or services to appeal to a wider target. Multigenerationalism exists when a business has different age groups in its target market.

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3 years ago

You receive three credit scores: 680, 705, 695. what is your average credit score?

Nataly_w [17]

The correct answer is 693.33333333.

6 0

3 years ago

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease

babymother [125]

Answer and Explanation:

Lease Cash Effective Decrease in Outstanding

Payment Payment Interest Balance Balance

$ 34,600

1 $ 8,000 $ 3,460* $ 4,540** $ 26,600

2 $ 8,000 $ 2,660 $ 5,340 $ 21,260

3 $ 8,000 $ 2,126 $ 5,874 $ 15,386

4 $ 8,000 $ 1,539 $ 6,461 $ 8,925

5 $ 8,000 $ 893 $ 7,108 $ 1,818***

6 $ 2,000 $ 182 $ 1,818 $ -

*34600 x 10%

**8000-4540

***8000-7108

Interest rate = interest on second lease payment/outstanding balance after 1st payment x 100

Interest rate = 2660/26600 x 100

Interest rate = 10%

5 0

3 years ago

The kenosha company has three product lines of beer mugslong dasha, b, and clong dashwith contribution margins of $ 5, $ 4,

Tema [17]

Answer:

break even point in units:

a = 11,700
b = 46,800
c = 35,100

Explanation:

beer mugs contribution margin expected sales

a $5 25,000

b $4 100,000

c $3 50,000

fixed costs = $351,000

if the sales proportion remains the same, we can assume a bundle of products = 1a + 4b + 3c (1 for every 25,000 units) whose contribution margin = $5 + $16 + $9 = $30

break even point = fixed costs / bundle's contribution margin = $351,000 / $30 = 11,700 bundles

break even point in units:

a = 11,700

b = 11,700 x 4 = 46,800

c = 11,700 x 3 = 35,100

3 0

3 years ago