Option 1: Evaluate the following statement: "Since any bank can only lend out its excess reserves, an increase in the monetary base that provides banks with excess reserves leads to a dollar for dollar increase in the money supply through bank lending." Option 2: Evaluate the following statement: "Banks must walk a tightrope between liquidity and profitability because the prudent policies such as holding lots of reserves that maintain liquidity reduce profitability." Option 3: In what way is it true that "banks make money by making money"
Answers
Answer with Explanation:
Option 1: "Since any bank can only lend out its excess reserves, an increase in the monetary base that provides banks with excess reserves leads to a dollar for dollar increase in the money supply through bank lending.- True
Reason:
Banks lend out its excess reserves after maintaining certain ratio as a part of legal reserve ratio predetermined by the Central bank. They maintain that percentage of their net deposits with the central bank.
If there is increase in monetary base , it means banks are getting more public deposits and legal reserve ratio is already fixed by the Central bank.
So, bank will left with excess reserves which it will lend and which leads to dollar for dollar by getting interest on its excess reserves.
Money supply will get increase as public are getting loan through bank lending.
Option 2: "Banks must walk a tightrope between liquidity and profitability because the prudent policies such as holding lots of reserves that maintain liquidity reduce profitability." - True
Reason:
When bank holds lots of reserves with itself to maintain the liquidity instead of lending it to the public, it will reduce its profitability.
As bank earn profits in the form of interest they getting while lending loans to public but if they hold it to itself they would not get any interest which will hamper their profitability.
Option 3: In what way is it true that "banks make money by making money"
Banks make money by making money.
Suppose banks gets a deposit of Rs.1000 as public deposit. Then after maintaining the legal reserve ratio says CRR i.e. 3% and SLR i.e. 18%.
So, After maintaining 21% reserve as LRR, remaining amount i.e. Rs.790 will be lent by banks to public as a loan with some rate of interest says 5%, he will get Rs. 829.50 in return .
So, bank made money by making money.
Related Questions
An electronic card that is derectly connected to a checking account is known as a
Answers
Answer:
debit card
Explanation:
a checking account is also known as a savings account
Scapegoating is a common way to neutralize what type of conflicts?
O a. Values
O b. Task
O c. Relationship
O d. Personal
Answers
In this question, scapegoating is a common way to neutralize relationship conflicts.
What is scapegoating?Scapegoating is the practize of assigning blame for issues or flaws within a broader system on a specific person or group. It happens as a means of deflecting blame and attention from the true problem, and it's frequently employed as a defensive tactic to allay feelings of guilt, fear, or other negative emotions by assigning them to an innocent individual. The actions are motivated by psychological and social considerations, such as the need to uphold one's sense of control, safeguard one's reputation, or follow societal conventions. Scapegoating may be damaging because it perpetuates negative preconceptions and biases and can be destructive to the individual or group being blamed.
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Jorge has a new job in an office. Which of the following safety procedures will he most likely need to learn?
Answers
Answer: D) How to exit safely in the event of a fire
Explanation:
In the month of March the Chester Corporation received and delivered orders of 182,000 units at a price of $15.00 for revenue of $2.730mil for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $2.730mil for the March deliveries. How much of the collected $2.730mil should Chester show on the March 31st income statement and how much on the May 31st income statement?
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When the funds are collect in may the accounts receivable is cleared to cash/Bank
Dr Bank and Cr accounts receivable
How ever since Chester Corp offers only 30 day credit terms the receivable is 30 days late they can Charge late payment fees and recognize the late fees as revenue in May i.e. the month the late fees is recognized
Provide an argument for how Coke's disastrous marketing campaign for New Coke might actually have been a good thing for the company's core product.
Answers
if the natural rate of unemployment is 5%, what is the total rate of unemployment if output is 2% below potencial output?
Answers
How do facilities contribute to profitability of the hospitality business?
Answers
Answer:
The facilities of a hospitality business are of utmost importance when it comes to profitability. They have the potential to attract guests, command higher room rates, generate repeat business, save costs, and provide a competitive advantage. Guests often base their decision to stay at a particular hotel on the quality of facilities such as rooms, amenities, and services. Moreover, well-maintained facilities can reduce utility and labor costs and can be a key factor in distinguishing a hotel from its competitors. In conclusion, facilities are essential to the financial success of a hospitality business and must be carefully managed and maintained.
Chavez estimated and must expense $7,800 of accrued vacation benefits for the year. (a) Prepare the December 31 year-end adjusting entry for accrued vacation benefits. (b) Prepare the entry on April 1 of the next year when an employee takes a one-week vacation and is paid $800 cash for that week.
Answers
Answer:
A. Dr Dec. 31. Vacation Benefits Expense $7,800
Cr Vacation Benefits Payable $7,800
B. Dr Aprl. 1 Vacation Benefits Payable $800
Cr Cash $800
Explanation:
(a) Preparation for the December 31 year-end adjusting entry for accrued vacation benefits.
Dr Dec. 31. Vacation Benefits Expense $7,800
Cr Vacation Benefits Payable $7,800
(Being To record the accrual of vacation benefit for the year)
(b) Preparation for the entry on April 1 of the next year in a situation where an employee takes a one-week vacation and is paid the amount of $800 cash for that week.
Dr Aprl. 1 Vacation Benefits Payable $800
Cr Cash $800
(Being To record the payment of vacation benefits for one week)
A diesel-powered tractor with a cost of $250,020 and an estimated residual value of $6,200 is expected to have a useful operating life of 73,000 hours. During April, the tractor was operated 200 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places. $fill in the blank 1
Answers
Answer: 365
Explanation:
Consider the following data. 42 45 32 27 38 12 32 The difference between the median and the mode is A. 2 B. 3 C. 1 D. 0
Answers
The difference between the median and the mode is 0. Option D
To find the median, we need to first arrange the data in ascending order: 12, 27, 32, 32, 38, 42, 45. The median is the middle value, which in this case is 32.
To find the mode, we need to identify the value that appears most frequently in the data set. Here, 32 appears twice, which is more than any other value. Therefore, the mode is 32.
The difference between the median and the mode is simply the absolute value of their difference: |32-32| = 0. Therefore, the answer is D) 0.
In summary, to find the difference between the median and the mode, we need to first find the median by arranging the data in ascending order and identifying the middle value. Then, we need to identify the mode, which is the value that appears most frequently in the data set. Finally, we calculate the absolute value of their difference to find the answer. In this case, the difference is 0. Option D.
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The analysis phase of decision making includes___________. Qualitative analysis is based primarily on__________ and decision-making effectiveness is usually increased by________. Quantitative analysis is based primarily____________ on and skills in this approach are usually increased by_______________ .
Answers
Answer: Please refer to Explanation
Explanation:
The attached photo contains the complete question as well as some options.
1. Both qualitative and quantitative analysis.
The analysis phase includes both of these types of analysis to provide a complete view of a variable from both a numbers and an experience perspective.
2. Judgement, experience, and intuition.
Qualitative Analysis is usually based on these 3 as numbers are not necessarily used.
3. Experience.
The more you are faced with analysing Qualitative data, the more the get used to it and better at it.
4. quantitative facts, data, and mathematical expressions.
Quantitative Analysis is done on mathematical instruments such as facts,data and expressions to provide a more mathematical driven approach to analysis.
5. Studying.
The more you study Quantitative Data and it's methods of analysis, the better you get at it because you begin to see patterns as well as use better analytic tools.
Answer:
i). Both qualitative and quantitative analysis.
ii). Judgement, experience and intuition.
iii). Experience.
iv). Quantitative facts, data and mathematical expressions.
v). Studying.
Explanation:
After this study above, it was easily gathered that quantitative analysis is often associated with numerical analysis where data is collected, classified, and then computed for certain findings using a set of statistical methods. Data is chosen randomly in large samples and then analyzed. The advantage of quantitative analysis the findings can be applied in a general population using research patterns developed in the sample while qualitative analysis is concerned with the analysis of data that cannot be quantified. This type of data is about the understanding and insights into the properties and attributes of objects (participants). Qualitative analysis can get a deeper understanding of “why” a certain phenomenon occurs.
EXAMPLE 2 An entity purchased an item of plant for Tshs. 120,000,000 on 1 January 2001. The plant was depreciated on a straight line basis over its useful economic life, which was estimated at six years. On i January 2003 the entity decided to revalue its plant. No fair value was available for the item of plant that had been i 3 If in 2005 the plant in Example 2 above had a replacement cost of Tshs. 100,000,000. Account for the proper treatment in the book of account in relation to the Plant
Answers
The entity need to determine fair value for the plant. Assuming the fair value was determined to be Tshs. 130,000,000, the entity would record:
revaluation surplus of Tshs. 10,000,000 (130,000,000 - 120,000,000).carrying amount of the plant would then be adjusted to Tshs. 130,000,000.What is the proper treatment in the book of account?If in 2005, the plant had a replacement cost of Tshs. 100,000,000, this would not affect the treatment of the revaluation surplus or the carrying amount of the plant.
The replacement cost is not relevant to the accounting treatment of the plant's revaluation because it is not a measure of the plant's fair value. However, if the entity wished to reflect the lower replacement cost in the financial statements, it could consider whether an impairment loss was necessary.
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What is a financial planner? Responses
O a person that advises you on legal matters
O a qualified investment professional who helps individuals and corporations meet their long-term financial objectives
O a person whose job it is to keep, inspect, and analyze financial accounts
O a person who often works at a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities
Answers
1. What is a financial planner?
a qualified investment professional who helps individuals and corporations meet their long-term financial objectives
2. How do financial planners get paid?
on the basis of fees or commissions
3. Which of these do financial planners advise on?
investing
4. What is the role of a financial planner?
a qualified investment professional who helps individuals and corporations meet their long-term financial objectives
5. What is the CFP?
a formal certification of expertise in the areas of financial planning, taxes, insurance, estate planning, and retirement
Personal Finance- Financial Planning Quick Check4/22/2023
11. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
selling price $140
units in beginning inventory 0
units produced 1,200
units sold 800
units in ending inventory 400
Direct materials $25
Direct labor $41
Variable manufacturing overhead $6
Variable selling and administration $6
Fixed manufacturing overhead 24,000
fixed selling administration $12,000
What is the net operating income for the month under variable costing?
A. $21,600
B. $(15,200)
C. $8,000
D. $13,600
Answers
Answer:
I THINK ITS B
Explanation:
7 reasons why marketing must be studied.
Answers
hope this help!
In which situation would a saving account be the best investment to earn interest?
Answers
The situation that a saving account be the best investment to earn interest are:
Short-term goalsEmergency fundRisk aversion, etc.What is a saving account?For short-term financial goals and quick access to funds, choose a savings account - safe, liquid, and earns interest. An emergency fund is a safety net for unexpected expenses. Store it in a savings account for easy access and interest.
Choose a savings account for conservative investing. Insured by the government, providing extra protection." Saving for short-term expenses: If you have a specific expense coming up, like a vacation or a down payment, save accordingly.
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2. Joe, a bartender, is typically “over” in his cash drawer by two or three dollars each shift. In the past, you have always thought that it is “better to be over than to be short” and have not worried about it. However, after reviewing chapter 12, you recognize that there might be a problem.
Why could this be a problem? What would you do?
Answers
Answer:
It will add up.
Explanation:
Money adds up very fast.
Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The bonds have 22 years to maturity, pay semmiannual coupons, and are priced at 97. What is the effective annual yield on these bonds?a) 7.55%b) 8.55%c) 7.94%d) 7.5%
Answers
Answer: 7.94%
Explanation:
The effective annual yield on these bonds would be calculated as:
= [1 + (YTM/2)]² - 1
= [1 + (0.0779/2)]² - 1
= [1 + 0.03895]² - 1
= 1.079417103 - 1
= 0.079417103
= 7.94%
Therefore, the effective annual yield on these bonds would be 7.94%.
Reggie, who is 55, had AGI of $35,200 in 2022. During the year, he paid the following medical expenses:
Drugs (prescribed by physicians)
Marijuana (prescribed by physicians)
Health insurance premiums-after taxes
Doctors' fees
Eyeglasses
Over-the-counter drugs
$ 570
1,470
1,280
1,320
445
270
Required:
Reggie received $570 in 2022 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?
Answers
Reggie's medical expense deduction is $7,276.
AGI, or adjusted gross income, is a person's total income minus certain deductions and is used to calculate taxable income.
Reggie, who is 55 years old, had an AGI of $35,200 in 2022. During the year, he incurred the following medical expenses:
Drugs (prescribed by physicians): $5,701
Marijuana (prescribed by physicians): $1,470
Health insurance premiums-after taxes: $1,280
Doctors' fees: $1,320
Eyeglasses: $445
Over-the-counter drugs: $270
Reggie was reimbursed $570 by his insurance company for a portion of the doctors' fees. To calculate his medical expense deduction, we first need to subtract any reimbursements from his total medical expenses.
Total medical expenses: $5,701 + $1,470 + $1,280 + $1,320 + $445 + $270 = $10,486
Reimbursements: $570
Medical expenses after reimbursements: $10,486 - $570 = $9,916
To claim a medical expense deduction, the expenses must exceed a certain percentage of AGI, which varies depending on the taxpayer's age. For taxpayers who are 65 or younger, the threshold is 7.5% of AGI. For taxpayers who are over 65, the threshold is 7%.
Since Reggie is 55 years old, the threshold is 7.5% of his AGI or $35,200 x 0.075 = $2,640.
Therefore, Reggie can deduct the portion of his medical expenses that exceed $2,640.
Amount of medical expenses that exceed the threshold: $9,916 - $2,640 = $7,276
Therefore, Reggie's medical expense deduction is $7,276.
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Why are many goods sold in the United States produced
overseas, often in several countries?
Answers
he aubey coffee company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. the two alternatives are (1) a conveyor system with a high initial cost but low annual operating costs and (2) several forklift trucks, which cost less but have considerably higher operating costs. the decision to construct the plant has already been made, and the choice here will have no effect on the overall revenues of the project. the cost of capital for the plant is 7%, and the projects' expected net costs are listed in the following table: expected net cost year conveyor forklift 0 -$500,000 -$200,000 1 -120,000 -160,000 2 -120,000 -160,000 3 -120,000 -160,000 4 -120,000 -160,000 5 -20,000 -160,000
Answers
The NPV for the forklift option is higher, it is the better choice in terms of cost-effectiveness.
How did we evaluate the choices?To evaluate the two alternatives, you can use the discounted cash flow (DCF) method, which takes into account both the initial cost and the operating costs over time. The DCF formula is as follows:
NPV = (C1 / (1 + r)^1) + (C2 / (1 + r)^2) + ... + (Cn / (1 + r)^n)
Where NPV is the net present value, C is the cash flow in each year, r is the cost of capital, and n is the number of years.
Using this formula, we can calculate the NPV for both alternatives:
Conveyor:
NPV = (-$500,000 / (1 + 0.07)^0) + (-$120,000 / (1 + 0.07)^1) + (-$120,000 / (1 + 0.07)^2) + (-$120,000 / (1 + 0.07)^3) + (-$120,000 / (1 + 0.07)^4) + (-$20,000 / (1 + 0.07)^5) = $-497,501.49
Forklift:
NPV = (-$200,000 / (1 + 0.07)^0) + (-$160,000 / (1 + 0.07)^1) + (-$160,000 / (1 + 0.07)^2) + (-$160,000 / (1 + 0.07)^3) + (-$160,000 / (1 + 0.07)^4) + (-$160,000 / (1 + 0.07)^5) = -$191,940.87
Since the NPV for the forklift option is higher, it is the better choice in terms of cost-effectiveness.
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Consider the following BPMN diagram:
Answers
If we look at the process model, we can see that Task A is the first task and must always be completed in order for the model to be run. Further observation reveals that because an exclusive gateway is employed, any of the two jobs, B and C, is carried out individually rather than simultaneously. As we continue to move through the BPMN diagram, we see that task M is the conversing task and is therefore always run along with a networks message flow from it to task F, which is done as soon as a message is received in pool 2 and finishes.
An item of networking hardware or software called a gateway is used in telecommunications networks to allow data to go from one distinct network to another.
The way that gateway differ from routers and switches is that they can join various networks using more than one protocol to communicate and that they can function at any of the seven OSI levels.
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why is it important to do research to locate appropriate work or study and funding opportunities from various sources (inclusing online)before making the final decision
Answers
It is very important to do research to known the level of work or study and funding opportunities from various sources before making the final decision due to the fact that when you don't know the above and you start your research, when you encounter problem halfway such as lack of funds, it may lead to one abandoning the project completely.
Why do one need research funding?Research funding is known to be a key part of conducting any form of research.
Conclusively, For one to be able to have a research grant is said to be a matter of name for a researcher and it also helps in the growth of one's career.
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Item7 Item 7 Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow: Annual sales $ 88,000 Labor costs (72,000 ) Depreciation of equipment (6,000 ) Operating income $ 10,000 Income taxes (4,000 ) Net income $ 6,000 The estimated accounting rate of return is:
Answers
Answer:
12.5%
Explanation:
Accounting rate of return = (Net Income / Equipment cost) * 100
Accounting rate of return = ($6000/$48000)*100
Accounting rate of return = 0.125 * 100
Accounting rate of return = 12.5%
So, the estimated accounting rate of return is 12.5%.
Which skills are common to Education and Training cluster? skills in math and finance leadership and teaching skills knowledge of instructional design and psychology knowledge of school policies maintenance of classroom discipline communication skills for dealing with students, families, and coworkers
Answers
Answer:
Leadership and teaching skillsKnowledge of instructional design and psychologyKnowledge of school policiesMaintenance of classroom discipline Communication skills for dealing with students, families, and coworkersExplanation:
The Education and Training cluster comprises teachers, administrators, and professional student support staff. They work in schools and other educational institutions. Professional in the cluster help students achieve their educations objectives by helping them in academics and providing psycho-social support.
The skills required in this cluster revolve around effective teaching, school administration, and the ability to create good working relationships with students, colleagues, and other stakeholders.
Answer:
The correct answer is A,B,C,E,F
Explanation:
plz mark brailiest i really need it
used to protect all sorts of building structures
what is it?
Answers
Answer:
Your answer is Paint is used to protect all sorts of buildings and structures from the effects of water and sun
Explanation:
Hope this helps u
Crown me as brainliest:)
Answer the following questions on the basis of the monopolist's situation is illustrated in the following graph.
a. At what output rate and price does the monopolist operate?
b. In the equilibrium, approximately what is the firm's total cost and total revenue?
c. What is the firm's economic profit or loss in equilibrium?
Answers
The following answers are based on a monopoly economy.
The output rate and the price at which the monopolist operates based on the graph is 100 quantities at $10.In the market equilibrium, the firm's total cost and total revenues are $750 and $1000 respectively. The firm's economic profit in the equilibrium is $250.What is a monopoly?A monopoly, as defined by Irving Fisher, is a market with "no competition," resulting in a scenario in which a certain individual or organization is the exclusive supplier of a given product.
To arrive at answer a, we need to recall that the equilibrium of a monopolist is when the Marginal Cost equals the Marginal Revenue and the Marginal Cost Curve (MC) cuts the Marginal Revenue Curve (MR ) from below.
At this point, the equilibrium output is 100, and the equilibrium price is $ 10 for every unit of production.
For the answer is b, given that the firm is producing 100 units of goods at an average total cost of $7.5 (derived from the point that aligns with MR = MC), therefore,
Total Cost = Equilibrium Output * ATC (Average Total Cost)
= 7.5 * 100
= $750
To arrive at answer c,
Recall that Economic profit is the difference between the money collected from the sale of a product and the expenses of all inputs utilized, as well as any opportunity costs, is the economic profit or loss.
Hence, Economic Profit = Total Revenue (TR) Less Total Cost (TC)
= $1000 - $ 750
= $250
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This is often flavored and cooked and used to cover/decorate bake goods, such as cakes or cookies
Answers
Answer:
icing
Explanation
I dont know for sure, but that seems like the most correct answer
Crawford Corporation incurred the following transactions.
1. Purchased raw materials on account $46,300.
2. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials.
3. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable.
4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor.
5. Manufacturing overhead costs incurred on account were $80,500.
6. Depreciation on the company's office building was $8,100.
7. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
8. Goods costing $88,000 were completed and transferred to finished goods.
9. Finished goods costing $75,000 to manufacture were sold on account for $103,000.
Requried:
a. Journalize the transactions.
b. Prepare entries for manufacturing and nonmanufacturing costs.
Answers
Answer:
No. Account Titles and Description Debit$ Credit$
1 Raw Material Inventory 46300
Account Payable 46300
(To record purchase on credit)
2 . Work in Process Inventory 29200
Manufacturing overhead 6800
Raw Material Inventory 36000
(To record acquisition of raw materials)
3 . Factory Labor 59900
Factory Wages Payable 51000
Employer Payroll Taxes Payable 8900
(To record wages and payroll taxes payable)
4 Work in Process Inventory 54000
Manufacturing overhead 5900
Factory Labor 59900
(To record direct and indirect labor)
5 . Manufacturing overhead 80500
Account payable 80500
(To record manufacturing overhead on credit)
6 . Depreciation Expense 8100
Accumulated Depreciation—Building 8100
(To record depreciation)
7. Work in Process Inventory 81000
($54,000 X 150%)
Manufacturing overhead applied 81000
( To record the application of overhead)
8 Finished Goods 88000
Work in Process Inventory 88000
(To record the goods transferred to finished goods)
9. Accounts Receivable 103000
Sales Revenue 103000
(To record sales made on credit)
Cost of Goods Sold 75000
Finished Goods Inventory 75000
(To record cost of goods sold)
Please select the word from the list that best fits the definition
Choose the best organizational aid for the use described below.
Identifies sequences
Answers
Answer:
I don't see the list, and if you show me I'll help you
Answer:
The answer is Timeline
Explanation: