If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to _____

Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Th

podryga [215]

Answer:

$5,000

Explanation:

New total reserve = Existing reserve + Increase in reserve = $20,000 + $5,000 = $25,000

Required reserve still remains at $20,000 because the sale of securities does not change the checkable deposits,

Therefore, we have

Excess reserves = Actual reserve - Required reserve = $25,000 - $20,000 = $5,000 .

Therefore, level of excess reserves the bank now have is $5,000.

8 0

3 years ago

The following transactions relate to the City of Middleton, which has a fiscal year end of December 31. The city adopts budgets

scoundrel [369]

Answer:

See explaination

Explanation:

1.

--Capital projects fund journal

Dr. Cash $2,000,000

Cr. Other Financing Source—Proceeds of Bonds $2,000,000

--Governmental activities journal

Dr. Cash $2,000,000

Cr. Bonds Payable $2,000,000

2.

--Debt service fund journal

Dr. Estimated Other Financing Sources—Inter fund Transfers In $ 30,000

Cr. Appropriations $ 30,000

--General Fund journal

Dr. Budgetary Fund Balance $ 30,000

Cr. Estimated Other Financing Uses—Inter fund Transfers Out $ 30,000

3.

--Capital projects fund journal

Dr. Investments $1,000,000

Cr. Cash $1,000,000

--Governmental activities journal

Dr. Investments $1,000,000

Cr. Cash $1,000,000

4.

--General Fund journal

Dr. Other Financing Uses—Inter fund Transfer out $ 30,000

Cr. Cash $ 30,000

--Debt service fund journal

a) Dr. Cash $ 30,000

Cr. Other Financing Sources—Inter fund Transfer In $ 30,000

b) Dr. Expenditures—Interest $ 30,000

Cr. Cash $ 30,000

--Governmental activities journal

Dr. Expenses—Interest on Long-term Debt $ 30,000

Cr. Cash $ 30,000

5.

--Capital projects fund

Dr. Interest Receivable $ 11,555

Cr. Revenues—(optional to put source, Interest) $ 11,555

--Governmental activities journal

a) Dr. Interest Receivable $ 11,555

Cr. General Revenues—Investment Earnings—(optional to indicate restriction, Restricted for Capital Projects) $ 11,555

b) Expenses—Interest on Long-term Debt $ 30,000

Interest Payable $ 30,000

Debt service fund

Note that there is no accrual of interest expenditure since the expenditure is not legally due until after the first of the year.

4 0

4 years ago

Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met

Studentka2010 [4]

Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met, common shareholders are known as Residual owners.

<h3>What does Shareholders means?</h3>

A shareholder (in the US frequently alluded to as investor) of a company is an individual or legitimate substance.

A body politic, a trust or organization) that is enlisted by the partnership as the lawful proprietor of portions of the offer capital of a public or confidential partnership. The impact of a shareholder on the not entirely set in stone by the shareholding rate claimed. Shareholders of a company are legitimately isolated from the actual enterprise.

They are for the most part not at risk for the organization's obligations, and the shareholders' responsibility for organization obligations is supposed to be restricted to the neglected offer cost except if a shareholder has offered ensures. The company isn't expected to record the helpful responsibility for shareholding, just the proprietor as recorded on the register.

Therefore Shareholders might have procured their portions in the essential market by buying into the Initial public offerings.

Learn more about Shareholder here:

brainly.com/question/19054394

#SPJ4

8 0

2 years ago

In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is recorded as defe

Tema [17]

Answer:

The Journal entries are as follows:

(i) In 2018,

Income Tax Expense A/c Dr. $24

Deferred Tax Assets A/c ($40 × 30%) Dr. $12

To Income Tax Payable ($120 × 30%) $36

(Being income tax and deferred tax recorded for 2018)

(ii) In 2019,

Income Tax Expense A/c Dr. $45

To Income Tax Payable ($140 × 30%) $42

To Deferred Tax Assets ($10 × 30%) $3

(Being income tax and deferred tax recorded for 2019)

6 0

3 years ago

Why is it important to review your personal information for accuracy when you receive an invoice?

Sav [38]

When you receive an invoice, it is important to review your personal information for accuracy, the reason behind this is to ensure that the invoice is going to sent you and it is related to you. To make sure that the information you sent or saved is related to you and is reliable, this is done by reviewing your personal information.

8 0

3 years ago

If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.

If the economy is experiencing an inflationary gap, the Fed should conduct monetary policy to aggregate demand.