Consider a world in which there is no currency and depository institutions issue only transactions deposits and desire to hold no excess reserves. The required reserve ratio is 15 percent. The central bank sells $0.98 billion in government securities.
What happens to the money supply?
Give reasons to support your answer.
Answer:
The answer is below
Explanation:
Considering the situation described above, the result is that there will be a DECREASE in the money supply of $6.53 billion.
This is because the money multiplier is calculated as 1/rr, where RR is the reserve ratio.
Hence, in this case, we have 1/0.15 = 6.67
Therefore, 6.67 × $0.98 billion = $6.53 billion.
In the context of factors of production, the given scenario exemplifies the concept of<u> "entrepreneurship".</u>
Entrepreneurship is the way toward planning, propelling and maintaining another business, which is regularly at first a private company. The general population who make these organizations are called entrepreneurs.
Entrepreneurship has been depicted as the "limit and readiness to create, sort out and deal with a business wander alongside any of its dangers keeping in mind the end goal to make a profit". While meanings of business ordinarily center around the starting and running of organizations, because of the high dangers associated with propelling a start-up, a noteworthy extent of new companies need to close because of "absence of financing, awful business choices, a monetary emergency, absence of market request—or a mix of these.
Answer:
The company’s net income is $404,316.
Explanation:
Ivanhoe Company
Income statement for the period ended March 31, 2017
$
Sales 1,700,000
Cost of goods sold <u> (813,400) </u>
Gross Income 886,600
Depreciation expense <u>(175,000)</u>
Operating Income 711,600
Interest expense <u>(89,575) </u>
Income before Tax 622,025
Tax rate 35% <u> (217,709) </u>
Net Income <u> 404,316 </u>
Answer:
the overhead rate is $50 per machine hour
Explanation:
The computation of the overhead rate is shown below:
Predetermined overhead rate
= Estimated total Overhead ÷ Estimated total machine hour
= $10,000,000 ÷ 200,000 hours
= $50 per machine hour
hence, the overhead rate is $50 per machine hour
The same should be considered and relevant
Answer:
The correct answer is letter "D": his technical skills are of the utmost priority.
Explanation:
Shift managers require <em>technical and conceptual skills</em>. However, most of their job implies being in permanent interaction with subordinates in helping them perform their day-to-day duties efficiently. Then, the technical skills are likely to be more necessary for this type of job.
