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zheka24 [161]
2 years ago
8

What is the relashionship between reserve ratio and interest rate spread​

Business
1 answer:
Hoochie [10]2 years ago
8 0

Answer:

The higher the reserve requirement is set, the less the amount of funds banks will have to loan out, leading to lower money creation. Alternatively, the higher the reserve requirement the, lower the supply of loanable funds, the higher the interest rate and the slower the resulting economic growth.

Explanation:

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The following information to perform the calculations below (using the indirect method).
Liono4ka [1.6K]

Answer: -$556,000

Explanation:

Based on the information given in the question, the the amount of cash used by investing activities would be calculated as:

Purchase of long-term assets -612,000

Add: Sale of long-term investment at cost 56,000

The amount of cash used by investing activities would now be:

= -$612,000 + $56,000

= -$556,000

7 0
3 years ago
Assuming a 360 day year, the interest charged by the bank at the rate of 6%, on a 90 day discounted note payable of 100,000 is:_
Readme [11.4K]

Answer:B. $1,500

Explanation:

Interest revenue is  money earned when an entity or individual  loans   money to another.  it can also be regarded as money accrued  from investments. IT is calculated as  

Interest Revenue = Principal x Rate x Time

= $100,000 x 6%  x 90/360

= $100,000 x 0.06 x 0.25

= $1,500

Therefore the interest charge by the bank is $1500.

4 0
2 years ago
When the cost minimizing combination of inputs is being used and there is no corner​ solution,
LenKa [72]

Answer:

A. the iso-quant line is tangent to the iso-cost line.

Explanation:

Cost minimization refers to the decrease in level of cost of production for certain specified level of production.

Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.

In this manner the company chooses the idle way of cost minimization.

4 0
3 years ago
When sales exceed production, the net operating income reported under variable costing generally will be:_____.
padilas [110]

When sales exceed production, the net operating income reported under variable costing generally will be <u>greater than the net operating income reported under absorption costing</u>.

Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.

Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.

Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.

Learn more about Absorption costing here brainly.com/question/26276034

#SPJ4

6 0
1 year ago
In what ways do the benefits of free enterprise affect your daily life? List as many examples as you can. Consider neighborhood
Kobotan [32]

well think about it in a variety of different ways, a free market economy can affect anyone's daily life, that being, in a free market economy a person can make any choice he or she wants with little or no government interference


hope I was able to help ~kashout kam

6 0
3 years ago
Read 2 more answers
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