Answer:
1. $50 million
2. $50 million
3. In a closed economy, national savings equals investment
Explanation:
For a closed economy, the formula for calculating GDP = C + I + G
Where C - Consumption
I - investment
G - Government Spending
To find investment ,
750 = 300 + I + 400
I = $ 50 million
National savings = private saving + Government saving
Private saving = Y − T − C
750 - 300 - 250 = $200 million
Public savings = T - G
250 - 400 = $-150 million
National savings = $200 - $ 150 million = $ 50 million
Nb - All numerical values are in $ millions
Answer: contingency
Explanation:
Contingency planning is a form of planning that is used by an organization in order to plan ahead in case an event occurs. Contingency plans can also be called a 'Plan B' due to the fact that it's an alternative action in case things does not go as planned.
Therefore, based on the question, Pinnacle is practicing contingency planning.
Answer:a.
It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
Explanation:
A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result - It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:
MONEY SUPPLY = RESERVES X MONEY MULTIPLIER
Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.
Answer:
Option (b) is correct.
Explanation:
The Journal entries are as follows:
(i) On November 1, 2015
Retained Earnings [$3 × 20,000] A/c Dr. $60,000
To Dividend Payable $60,000
(To record the declaration of dividend)
(ii) On November 30, 2015
Dividend Payable A/c Dr. $60,000
To cash A/c $60,000
(To record the payment of dividend)
Answer:
INCREMENTAL cost allocation method
Explanation:
Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.
