If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
Explanation:
The T account is presented below:
Allowance for Doubtful Debts
Jan 29 $5,850 Jan 1 Beginning balance $54,200
Aug 9 $11,850 April 18 $4,000
Dec 31 $52,160 Nov 7 $7,000
Dec 31 Unadjusted
balance $4,660
Dec 31 Adjusting entry $64,660
Dec 31 Adjusted balance $60,000
Answer:
Option C is the correct option.
Explanation:
As the rights and obligation of the antique rocking chair are been passed to third party, so the damage caused by the checque been bounced is the monetry consideration agreed between the party to the contract, McGraw and Tellis. So Tellis may recover money damages from McGraw. However there is a special condition that can allow Tellis recover his asset from Rio if the third party knew before purchase of this asset, that the checque paid to Tellis by McGraw was dishonoured but still he contracted with McGraw to acquire the antique rocking chair.
Overall the option C is the correct option with which the case scenario relates.
Answer:
Unemployment rate is 25%
Explanation:
The percentage of people eligible for job and not currently involved in paid work or self employed and available for work as well is called rate of unemployment. It is the percentage of people who is not currently woking seeking the job.
Labor Force = Employed persons + Unemployed persons
Labor Force = 24 million + 8 million
Labor Force = 32 million
Unemployment rate = ( Unemployed persons / Labor force ) x 100
Unemployment rate = ( 8 million / 32 million ) x 100 = 25%
Answer:
Estimated manufacturing overhead rate= $7.53 per direct labor hour
Explanation:
Giving the following information:
The company's executives estimated that direct labor would be $5,130,000 (190,000 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period.
We need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,430,000/190,000= $7.53 per direct labor hour
