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3 years ago

2.FED (Federal Reserve Bank). buys a $10,000 bond from bank. What is the potential impact on MS (Money Supply)

Business

1 answer:

oksano4ka [1.4K]3 years ago

6 0

Answer: Money Supply Increases

Explanation:

If the FED buys a $10,000 bond from a bank, it is increasing the money supply in the economy because the cash that it pays for the bond will go into the economy.

Buying bonds and securities from banks is one way the FED can embark on expansionary monetary supply policies that aim to inject money into the economy.

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Relix, Inc., is a domestic corporation with the following temporary timing differences for the current year. The building deprec

Rina8888 [55]

Answer:

Computation of Provision for income tax expense

Particulars Amount

Pre tax financial income $4,800

Add: Non deductible business meal $780

Less: Tax exempt interest -$2,375

Less: Book tax difference in depreciation -$16,800

of building and Furniture & fixtures

Add: Accured litigation expenses $16,000

Taxable Income $2,405

Provision for income tax Expense

Current Tax (21% of $2,405) $505

Deferred tax liability $3,528

Deferred tax asset -$3,360

Total Provision for income tax expense $673

Computation of book net income after tax

Particulars Amount

Book net income before taxes $4,800

Less: Provision for income tax expense -$673

Net Income after tax $4,127

3 0

3 years ago

John borrows $10,000 for 10 years at an effective interest rate of 10%. He can repay the loan using the amortization method with

Ierofanga [76]

Answer:

The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19

Explanation:

Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.

$FutureValue=\frac{A((1+r)^{n} -1)}{r}$

Where:

A = equal annual savings into the sinking fund (that is $627.45)

r = effective rate of the sinking fund (14%)

n = 10 years

Everything should look like this.

$FutureValue=\frac{627.45((1+0.14)^{10} -1)}{0.14}$

$Future Value=12,133.19$

Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.

Best of luck.

8 0

4 years ago

You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three su

katrin [286]

Answer:

the price per unit is $1.20

Explanation:

The computation of the price per unit for Thailand Polishing is shown below:

= 2,400 ÷ 200 polished disks

= 12 bhat/unit

Given that

$1 = 10

So, 12 baht it is

= 1 ÷ 10 × 12 baht

= $1.2

Hence, the price per unit is $1.20

The same should be considered

4 0

3 years ago

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer

laila [671]

Explanation:

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

To Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

To Accounts receivable - C. Green $2,300

(Being the payment is received is recorded)

7 0

3 years ago

Read 2 more answers

Select cost information for Klondike Corporation is as follows:

Bingel [31]

Answer:

D. Direct materials is a variable cost and rent expense is a fixed cost.

Explanation:

As clearly seen from the data the direct material cost is varying but the rent cost is fixed cost.

6 0

3 years ago