UNIT 3 MACROECONOMICS POS... Question 5 V Pause Q ABC Question 5

The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. Th

Eddi Din [679]

Answer:

Maximum expansion in money supply = $5,000

Explanation:

The fractional banking system requires banks to keep a percentage of their total deposit as reserve and lend the rest as loans and advances

The total maximum amount that can be created by the bank is equal TO the amount of deposit multiplied by the creation multiplier.

The multiplier = 1/reserve ratio

Maximum amount = 1,000 × 1/0.2

= $5,000

5 0

3 years ago

Auditors are likely to prepare a proof of cash when the client has

igomit [66]

Auditors would likely prepare a proof of cash in an event where the client has substantial control weaknesses in cash receipts and cash disbursements, since a proof of cash would incorporate separate columns for cash receipts and cash disbursements. The proof of cash template is otherwise called the four-column bank reconciliation.

6 0

4 years ago

There is substantial evidence that antitrust policy has been effective in identifying and prosecuting price-fixing by businesses

natta225 [31]

True, there is substantial evidence that antitrust policy has been effective in identifying and prosecuting price-fixing by businesses.

A written, verbal, or conduct-based agreement to raise, lower, maintain or stabilize prices or price levels is known as price fixing. Antitrust laws typically mandate that each business establish prices and other competitive terms independently, without consulting a rival. Price fixing gives businesses the power to discourage market competition. Instead of competing in a market that is competitive, producers can more easily and profitably agree upon prices and set them together. Customers are victimized and businesses are under less incentive to maintain competitive prices. The Antitrust Division of the US Department of Justice may pursue criminal charges for price fixing, bid rigging, and other types of collusion.

More about price fixing brainly.com/question/16199660

#SPJ4

8 0

2 years ago

All of the following are ways you can commit to your career path except: (APEX)

Whitepunk [10]

Answer:

C: letting yourself be swayed by those who love you.

Explanation:

It is only common knowledge that one cannot be be swayed by those who love you because only then will you be held back from committing to your career path.

7 0

3 years ago

Read 2 more answers

On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright rec

maria [59]

Solution:

1. (i)

Sales revenue = Present value of the note receivable

= $528,000 x .86384 = $456,108

Present value of $1: n = 3, i = 5% (PV of $1)

(ii)

December 31, 2018:

Interest revenue: ($456,108 x 5%) = $22,805

December 31, 2019:

Interest revenue: (($456,108 + $22,805) x 5%) = $23,946

December 31, 2020:

Interest revenue: (($456,108 + $22,805 + $23,946) x 5%) = $25,143

2. Journal entries to record the sale of merchandise on January 1, 2020

Date General Journal Debit Credit.

Jan 01, 2018 Note receivable 528,000

Discount on note receivable 71,892

Sales revenue 456,108

Dec 31' 2018 Discount on note receivable 22,805

Interest revenue 22,805

Dec 31, 2019 Discount on note receivable 23,946

Interest revenue 23,946

Dec 31' 2020 Cash 528,000

Discount on note receivable 25,143

Interest revenue 25,143

Note receivable 528,000

7 0

3 years ago