Answer:
Option (D) is correct.
Explanation:
Given that,
Amount of securities purchased = $100,000,000
Reserve requirement ratio = 20 percent
Money multiplier:
= 1 ÷ Reserve requirement ratio
= 1 ÷ 0.20
= 5
Increase in money supply:
= Money multiplier × Amount of securities purchased
= 5 × $100,000,000
= $500 million
Therefore, the total impact on the money supply will be a $500 million increase in the money supply.
Answer:
Nature of rivalry
Explanation:
In this context, rivalry represents a situation in which people, businesses, compete with each other for the same thing or market.
Action shoes has a lot of competition in the market, understanding the nature of rivalry implies that they know how to contend with their competitors.
Sometimes this may be called having or knowing your competitive advantage over your competitors.
Answer:
Explanation:
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The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...
Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.
d. The Company's liabilities will increase by $30,000.
Explanation:
From the question, Foster, Inc., bought a truck by paying $5,000 and then borrowed the remaining $30,000 that was required to complete the transaction.
Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000
