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alexdok [17]
2 years ago
7

Imagine you are running a bank and you are deciding how much of your funds to deposit with the Fed. Your alternative to depositi

ng funds with the Fed is to lend them to businesses and individuals. What are you likely to do if the Federal Reserve increases the interest rate that it pays on your deposits with them
Business
1 answer:
muminat2 years ago
5 0

If the Federal Reserve increases the interest rate that it pays on your deposits with them increase reserves at the Fed and reduce loans.

If the Federal Reserve increases the interest rate that it pays on your deposits with them, this means that the amount I deposit with the Fed would earn a higher rate of interest.

The aim of businesses is to make profit. As a result, I would increase the amount I deposit with the Fed in order to earn a higher rate of interest on my deposit and I would reduce the amount of loans I make.

To learn more, please check: brainly.com/question/14331161

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Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms
diamong [38]

Answer: please refer to the explanation section for journals and notes

Explanation:

1 April

DR Inventory 23000

CR       Trade Payable    23000

inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory  transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised

6 April

DR Freight costs 900

CR        Bank              900

DR Inventory   900

CR       Freight costs   900

Kerber Co Paid Freight costs of $900. There are two events happening in this transaction  being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised  (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).

7 April

DR Equipment  26000

CR       Creditor/Liability 26000

Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset  and liability is credited.

8 April

DR Trade Payable 3000

CR    inventory              3000

Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company) . Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable

15 April

DR Trade Payable 20000  

CR       Bank                    20000

23000 - 3000 = 20 000

recording payment made to the Creditor for inventory purchased or settlement of the trade payable account  

5 0
3 years ago
What is one major disadvantage of a capital formation strategy that focuses only on high risk investments
Troyanec [42]

Answer:

It increases the chance that the investment will lose all value.

Explanation:

If you go for a risky investment, it could increase the chance of it being a waste of time and money to sum it all up. But the answer you seek is, "It increases the chance that the investment will lose all value."

8 0
2 years ago
Carla Vista Company has the following information available for September 2020.
dmitriy555 [2]

Answer:

Carla Vista Company has the following information available for September 2020.

Unit selling price of video game consoles $410

Unit variable costs $328

Total fixed costs $36,900

Units sold 600

Compute the unit contribution margin.

Unit contribution margin enter the unit contribution margin

Prepare a CVP income statement that shows both total and per unit amounts.

Compute Carla Vista’ break-even point in units.

Break-even point in units enter Break-even point in units units

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

7 0
3 years ago
Which description most closely matches the term: TIME CRITICAL A ) Used for complex operations or introduction of new equipment
Scorpion4ik [409]

Answer:

The correct answer is C) Point of execution of a mission or task

Explanation:

The critical period is a limited time where an event can occur, and that results in some kind of transformation. For this reason, when identifying a risk, for example, it can be determined as the main point where a specific task is started to try to solve some problem.

5 0
3 years ago
Business Question! Just the first problem please, thank you
vovikov84 [41]

Answer:

  1. 34 coupons.
  2. $33.75

Explanation:

The coupons are the interest payments the bond makes.

1. The bond has a term of 17 years and coupons are to be paid semi-annually.

This means that for every year, 2 coupon payments will be made.

In 17 years therefore:

= 17 * 2

= 34 coupons

2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:

= 6.75% * 1,000 * 1/2

= $33.75

8 0
3 years ago
Read 2 more answers
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