When it has a small population
Answer:
The journal entry for recording the original sale is shown below:
Explanation:
The journal entry for recording the original sale is as follows:
Accounts receivable A/c................................Dr $735
Sales Tax A/c...................................................Cr $35
Sales A/c............................................................Cr $700
As sales is made on credit so the accounts receivable account will be debited against the Sales account, which is credited. And there is sales tax charged on selling necklaces, which is credited to the sales tax account.
Computation of Sales Tax as:
Sales tax = Selling amount × Tax
where
Selling amount = Number of Necklaces × Price
= 20 × $35
= $700
So,
Sales tax = $700 × 5%
Sales tax = $35
Answer:
i think its A)Minimum balance
Answer:
Fixed Deposit Account
Explanation:
Commercial Banks perform this crucial role of accepting deposits & advancing loans.
3 Types of Deposits :
Current Account - Used by businesses, has liberal depositing & withdrawal rules for payments & receipts, negligible interest by bank (rather bank charges for their service).
Savings Account - Used by households, for normal savings, has deposit & withdrawal rules less free than current account, moderate interest rate by bank.
Fixed Deposit Account - Used for Long Term savings, strict withdrawal rules before maturity (interest lost if withdrawn), high interest rate & money growth.
So, If need is to save money foe long period & letting it grow meanwhile, Fixed Deposit Account is a suitable Account.
Answe and Explanation:
b) To find out the equilibrium interest we will equate the money demand function with the money supply:
1000 - 200(r) = 1200/2
r = 2%
c) If the price is fixed and if the supply of money of is increased from 1200 to 1400 then the supply of real balances will be 1400/2 = 700
The equilibrium interest would be:
1000 - 200(r) = 700
r = 1.5%
Thus, it shows that when the supply of money is increased and the price is fixed then the interest rate would fall from 2% to 1.5%
d) The supply of real balances would be 1600/2 = 800
Hence, the interest rate will be:
1000-200(r) = 800
r = 1%
As proved above, an increase in the money supply would decrease the interest rate keeping the price fixed.
e) If the Fed keeps the interest rate at 5% then,
1000 - 200(5) = Money supply/2
Money supply = 0
Reduce the money supply if the interest is increase from 2% to 5%
a) Picture is attached.
