Answer:
These statements are true:
A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:
For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).
C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.
Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.
For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.
D) The Federal Reserve sets the Federal funds rate.
Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.
Answer:
interst expense 1,920 debit
interest payable 1,920 credit
--to record year-end adjustment--
interest expense 1,280 debit
interest payable 1,920 debit
note payable 160,000 debit
cash 163,200 credit
--to record the honor of the note--
Explanation:
principal x rate x time = interest
principal 160,000
rate 8% annual
days from November 7th to December 31th: 54 days
160,000 x 0.08 x 54/360 = <em>1,920 interest expense</em>
at maturity:
160,000 x 0.08 x 90/360 = 3,200
3,200 total interest less 1,920 accrued interest = 1,280
Answer:
3. $600
Explanation:
The computation of the amount is shown below:
= Beginning balance of supplies + purchase made - supplies on hand
= $200 + $800 - $400
= $600
The year end increase in toy making supplies expense is $600
The journal entry would be
Supplies expense A/c Dr $600
To supplies A/c $600
(Being supplies account is adjusted)
Answer: Product-level
Explanation:
A product level activity is one of the type of activity that are performed for the production of the various types of products and the services and then it calculating the total number of batches of the specific items or products are get sold out in the market.
According to the given question, the Brulee bakery is basically producing the various types of vegan baked and the regular items and under the activity base costing the firm is basically developing the new vegan baked recipe.
Therefore, this type of process is basically refers as the product level activity.
Answer: Agency
Explanation: Agency refers to the relationship between an agent and a principal. A principal is someone who is in charge of or owns something. An agent is someone who acts on behalf of the principal in a particular situation. This is a consensual relationship, as the principal requests the agent to act on their behalf. However the agent needs to operate in such a way that there is no conflict of interest between the principal's needs and the agent's needs. The agent has to put the principal's needs first. The agent will then act according to the prinicipal's instructions when dealing with third parties.
