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2 years ago

The central bank buys $15,000 worth of bonds in the open market from Christopher, who

Business

1 answer:

vladimir2022 [97]2 years ago

4 0

Answer:

(a) What is the amount by which Carla Bank's liabilities have changed?

Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).

(b) Calculate the change in required reserves for Carla Bank.

Carla Bank's reserves must increase by $15,000 x 5% = $750

(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?

Carla Bank can loan $15,000 x 95% = $14,250

(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.

Money multiplier = 1 / 5% = 20

The money supply has the potential to increase by $15,000 x 20 = $300,000

(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.

Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.

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A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. w

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3 years ago

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Brian and Leslie have made an offer on Rudy and Judith's home. The first offer was rejected by the sellers. Brian and Leslie mad

Vinil7 [7]

Answer:

The correct answer is Once the counteroffer is made by the seller, the buyer's original offer becomes invalid. If the buyers accepts the offer the seller has made, the same process takes place as with a regular offer.

Explanation:

Buying a house is rarely as simple as bidding and paying for that offer. Negotiations can come and go for weeks before the seller and the buyer are satisfied.

The vehicle for this negotiation is the counter offer, a vital and complex rejection and contrary to an offer made by either party. Counter offers are typically handled between real estate agents and are time sensitive.

Selling or buying a house is more a process than a transaction, so it is important to understand the counter offers before making your first offer.

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3 years ago

Trial Balance September 30, 2022

Sergeeva-Olga [200]

Answer:

T- accounts:

Cash

Date Account Title Debit Credit

Oct. 1 Balance $23,640

Oct. 5 Accounts receivable 1,310

Oct. 15 Salaries $1,110

Oct. 17 Service Revenue 580

Oct. 20 Accounts Payable 1,830

Oct. 29 Dividend 250

Oct. 31 Utilities 420

Accounts Receivable

Date Account Title Debit Credit

Oct. 1 Balance $7,040

Oct. 5 Cash $1,310

Oct. 10 Service Revenue 5,410

Supplies

Date Account Title Debit Credit

Oct. 1 Balance $4,270

Equipment

Date Account Title Debit Credit

Oct. 1 Balance $10,170

Accounts Payable

Date Account Title Debit Credit

Oct. 1 Balance $9,240

Oct. 20 Cash 1,830

Unearned Service Revenue

Date Account Title Debit Credit

Oct. 1 Balance $3,270

Common Stock

Date Account Title Debit Credit

Oct. 1 Balance $19,440

Retained Earnings

Date Account Title Debit Credit

Oct. 1 Balance $13,170

Service Revenue

Date Account Title Debit Credit

Oct. 10 Accounts receivable $5,410

Oct. 17 Cash 580

Salaries Expense

Date Account Title Debit Credit

Oct. 15 Cash $1,110

Dividend

Date Account Title Debit Credit

Oct. 30 Cash $250

Utilities Expense

Date Account Title Debit Credit

Oct. 30 Cash $420

Explanation:

a) Data and Calculations:

Trial Balance September 30, 2022

Account Title Debit Credit

Cash $23,640

Accounts Receivable 7,040

Supplies 4,270

Equipment 10,170

Accounts Payable $9,240

Unearned Service Revenue 3,270

Common Stock 19,440

Retained Earnings 13,170

$45,120 $45,120

b) Journal Entries:

Oct. 5:

Debit Cash $1,310

Credit Accounts Receivable $1,310

To record cash receipts from customers.

Oct. 10:

Debit Accounts Receivable $5,410

Credit Service Revenue $5,410

To record service revenue.

Oct. 15:

Debit Salaries Expense $1,110

Credit Cash Account $1,110

To record payment of salaries.

Oct. 17:

Debit Cash Account $580

Credit Service Revenue $580

To record performance of services for cash.

Oct. 20:

Debit Accounts Payable $1,830

Credit Cash Account $1,830

To record the payment of cash on account

Oct. 29:

Debit Dividend $250

Credit Cash Account $250

To record the payment of cash dividend.

Oct. 31:

Debit Utilities $420

Credit Cash Account $420

To record the payment for Utilities.

8 0

3 years ago

If shell decided to open a new service station I a rural area of uk, which was not well serviced with filling stations, it would

timofeeve [1]

Answer:

The stakeholders are ; Customers, shareholders/investors, local community, suppliers, employees, Government, competitors, creditors etc.

Explanation:

Stakeholders are a group of people or individuals within a locality, whose interest is Paramount to the survival of an organization.

There are two types of stakeholders, which are;

Internal stakeholders : These group of people or individuals are part of the organization . eg employees, board of directors, managers. Etc.

External stakeholders: These group of people or individuals are not part of the organization but have interest in its performance. Eg local community, media, consumers, suppliers etc.

There are also primary stakeholders and secondary stakeholders.

Primary stakeholders. I.e those who have financial interest in an organization. Eg creditors, shareholders/investors etc.

Secondary stakeholders. i.e those who do not have financial interest but whose decision is influential. Eg trade union, government body etc.

As in the scenario above, impact of shell on several stakeholders are enumerated below;

-Employees: There must be job security for employees, clean and safe working environment and there must be regular source of income with which salaries will be paid.

-Shareholders/Investors:They expect maximum returns on their investment in form of dividends. They also expected to be given preferential treatment in terms of lower prices and little or no value lost on their investment.

-Customer: They expect that products to be sold are reliable and safe for consumption and at fair prices.

-Suppliers: Price of product supplied should be agreed by parties involved. Suppliers also expect regular and frequent orders from them.

-local community: These people expect steady employment for their children, provision of social amenities like tarred roads, community hall, cinema hall etc and avoidance of noise and environmental pollution.

-Competitors: There should be healthy rivalry among producers of similar products and all element of demarketing should be avoided.

-Government ; Government expect from shell constant and regular payments of taxes, compliance with local laws and provision of corporate social responsibilities to the host community.

-Creditors: The creditors would expect adequate returns on their loan investment, absence of failure to payback money owned them and repayment of money owed to them at the agreed date.

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3 years ago

A focus group can help companies determine all of the following EXCEPT

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How much consumers would be willing to pay for a new product

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3 years ago

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