Answer:
The bank will create excess reserve of $200 billion
Explanation:
The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.
Money multiplier = 1
/Legal Reserve Ratio = 1/0.2 = 5
Excess Reserve Created = A x (1
/Legal Reserve Ratio)
Where: A = New currency deposit = $40
Legal Reserve Ratio = 0.20
Excess Reserve Created = $40 x (1/0.2) = $40 x 5 = $200 billion
The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.
The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.
Answer:
B is the correct option.
Explanation:
Product costing refers to the cost incurred for creating a product. It includes the materials, labor, factory overhead and consumable production supplies. It can also be defined as the labor cost required for delivering the service and in this case, its cost also includes the costs related to compensation, payroll taxes, and employee benefits. The cost of a product on a unit basis is calculated by adding the cost of total direct labor, materials, consumable supplies and total allocated overhead divided by the total number of units.
Answer:
$8,767.50
Explanation:
Calculation for what Legion should report as bond interest expense for the six months ended
Using this formula
Bond interest expense= Carrying Value of Bond x Effective interest rate
Let plug in the formula
Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months
Bond interest expense=$8,767.50
Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50
Answer:
North-West Electric
Quality Department
If Ray decided to delayer his organization, what he would be doing is:
a. Reducing the number of job levels to achieve flexibility in assignments.
Explanation:
Delayering helps to cut some management layers from the organizational structure. It reduces the administrative costs of running the entire organization. Delayering helps the organization to make quicker decisions instead of following bureaucratic processes. It also increases the effectiveness and efficiency of the organization. Finally, it enables the staff to become more flexible and willing to step outside their established roles.
The equivalent units for the month for the first department for material is 48,000 and for labor and overhead 46000.
What is the weighted average ?
- One of three methods for valuing the stock in your company's inventory is the weighted average cost method, which establishes the average cost of all the products in your inventory based on their individual costs and the quantity of each item that is kept on hand.
- The weighted average is used by businesses to calculate the amount that goes into inventory and the cost of products sold (COGS).
- Due to the variety of inventory stock kinds or the same stock items being purchased at various times, a firm may pay varying costs when purchasing pieces of inventory.
Total units transferred = 42000
and, units of ending WIP = 6000(material), 4000(Labor), 4000(overhead)
So,
Equivalent units of production = 48000(material), 46000(Labor), 46000(overhead)
The equivalent units for the month for the first department for material is 48,000 and for labor and overhead 46000.
Learn more about weighted average here:
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