If the reserve requirement is 5 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $10, then this bank a. must increase its required reserves by $10. b. will initially see its total reserves increase by $10.50. c. will be able to make new loans up to a maximum of $9.50. d. All of the above are correct.

Answers

Answer 1
Answer:

Answer:

c. will be able to make new loans up to a maximum of $9.50

Explanation:

If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.

Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.

Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.

Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.


Related Questions

Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the company can sell its entire supply domestically for $170. The U.S. tax rate is 40 percent. Alternatively, Alpha can ship the circuit board to its division in Germany, to be used in a product that the German division will distribute throughout Europe. Information about the German product and the division’s operating environment follows.Selling price of final product: $360Shipping fees to import circuit board: $20Labor, overhead, and additional material costs of final product: $115Import duties levied on circuit board (to be paid by the German division): 10% of transfer price German tax rate: 60%Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.Required:1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?3. Assume that the German division can obtain the circuit board in Germany for $155.a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
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g Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer with an invoice amount of $27,000 which includes pre-paid freight costs of $2,000. The customer was issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount on the sale
On January 1 st, you make plans to travel to Switzerland the following summer. The direct quote for Swiss francs is $0.30.Since it will be a short trip, you believe $3000 in spending money will be sufficient. On June 1 st, the direct quote for Swiss francs is $0.40.As a result, How much Swiss francs will buy your $3000.
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product

On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note with $290000 accrued interest payable to Carla Vista, Inc. Carla Vista agrees to accept from Waterway equipment that has a fair value of $1440000, an original cost of $2400000, and accumulated depreciation of $1160000. Carla Vista also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 5%, with interest payable at the end of each year.Nolte should recognize a gain or loss on the transfer of the equipment of


a. $0.

b. $120,000 gain.

c. $180,000 gain.

d. $570,000 loss.


Nolte should recognize a gain on the partial settlement and restructure of the debt of


a. $0.

b. $45,000.

c. $165,000.

d. $225,000.

Answers

Answer:

(a) $210,000

(b) $351,500

Explanation:

(a) Given that,

Fair value of equipment = $1,440,000

Face Amount of the note = $1,230,000

Gain on sale:

= Fair value of equipment - Face Amount of the note

= $1,440,000 - $1,230,000

= $210,000

(b) Given that,

Accrued Interest Payable = $290,000

Interest rate = 5%

Gain on the partial settlement and restructure of the debt:

= Accrued Interest Payable + (Face amount of note × Interest rate)

= $290,000 + ($1,230,000 × 5%)

= $290,000 + $61,500

= $351,500

Apple Valley Corporation uses a job cost system and has two production​ departments, A and B. Budgeted manufacturing costs for the year​ are: Department A Department B
Direct materials ​$800,000 ​$120,000
Direct manufacturing labor ​$200,000 ​ $200,000
Manufacturing overhead ​$400,000 ​$500,000

The actual material and labor costs charged to Job​ #432 were as​ follows:

Total
Direct​ materials: ​$21,000
Direct​ labor:
Department A $11,000
Department B ​ $7,000
​$18,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is: _________
For Department B, the manufacturing overhead allocation rate is: _________
Manufacturing overhead costs allocated to Job #432 total: _________

Answers

Answer:

See below

Explanation:

1. manufacturing overhead allocation rate for department A

= (Manufacturing overhead department A/Manufacturing direct labor department A) × 100

= ($400,000/$200,000) × 100

= 200%

2. Overhead allocation rate for department B

= ($500,000/$200,000) × 100

= 250%

3. Manufacturing overhead cost allocated to job #432.

($11,000 × $400,000)/$200,000 + ($7,000 × $500,000)/$200,000

= $22,000 + $17,500

= $39,500

Suppose that Tucker Industries has annual sales of $6.60 million, cost of goods sold of $2.94 million, average inventories of $1,205,000, and average accounts receivable of $660,000. Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle? (Round your answer to 2 decimal places.)

Answers

Answer:

186.10 days

Explanation:

The operating cycle = Days inventory outstanding + days sale outstanding

where,

Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year

= ($1,205,000) ÷ $(2,940,000) × 365 days  

= 149.60 days

Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year

= ($660,000) ÷ ($6,600,000) × 365 days

= 36.5 days

Now put these days to the above formula  

So, the days would equal to

= 149,60 days + 36.5 days

= 186.10 days

Scenario: Kleen Waterproofing Dave Docket, the installation manager at Kleen Waterproofing, receives a high number of customer complaints that several crewmembers either come late to the job or they do not show up at all, without any communication with the customers. The job completion dates keep getting delayed, and customer dissatisfaction rate keeps increasing. Dave hires several new employees who are motivated, able to perform their jobs, and have adequate resources. However, they are not sure what tasks are included in their job. Dave wonders how he can understand what is going on with his crew behavior and what he can do to improve the situation. Dave organizes a training program for his employees to teach them how to operate the machines used for working. Which of the following attributes will show a direct improvement because of this training?
a) motivation.
b) organizational citizenship behaviors (OCB).
c) ethical sensitivity.
d) ability.

Answers

Answer:

d) ability

Explanation:

Based on the information provided regarding the scenario at hand it seems that Dave is trying to improve his employees' abilities and role-perception. Dave wants this training to allow his employees to gain the knowledge of how to operate correctly and efficiently during work-hours in order to increase overall performance and at the same time customer satisfaction.

2. Which aspect of professionalism do you feel that you are strongest at? Explain why you think so. (1-3 sentences. 2.0 points)

Answers

Answer:

I feel like my strongest aspect of professionalism would be communication. My career interests require lots of communication with customers. I would need to be able to communicate with the customer’s feelings and needs for whichever situation they are in and what they want to accomplish.

Explanation:

Final answer:

I believe my strongest aspect of professionalism is clear and effective communication. I am constantly working on improving my ability to understand non-verbal cues and refute counterclaims respectfully and factually.

Explanation:

The aspect of professionalism I feel I am strongest at is clear and effective communication. I believe this is a strong point in my professional character because I consistently strive to ensure my explanations are understood. My ability to articulate complex concepts into simpler understandable points is what sets me apart in my profession. In terms of personal development, there is always room for growth when it comes to active listening.

One area of my communication skills that could use development is understanding non-verbal cues. Often, these subtitles are just as important, if not more so, than the words being spoken. In my journey to become a better professional, I also make it a point to refute counterclaims sincerely and factually, respecting differing viewpoints without compromising on integrity.

Learn more about Professionalism here:

brainly.com/question/3396195

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On January 3, 2011, Austin Corp. purchased 25% of the voting common stock of GainsvilleCo., paying $2,500,000. Austin decided to use the equity method to account for thisinvestment. At the time of the investment, Gainsville's total stockholders' equity was$8,000,000. Austin gathered the following information about Gainsville's assets andliabilities:On January 3, 2011, Austin Corp. purchased 25% of

For all other assets and liabilities, book value and fair value were equal. Any excess of costover fair value was attributed to goodwill, which has not been impaired. For all other assets and liabilities, book value and fair value were equal. Any excess of costover fair value was attributed to goodwill, which has not been impaired.

What is the amount of goodwill associated with the investment?

Answers

Answer:

Amount of goodwill associated with the investment is $500,000

Explanation:

The first step is to calculate the total value of GainsvilleCo:

Total Value of GainsvilleCo  = 2,500,000 / 25% = $10,000,000

Book value of GainsvilleCo's underlying assets = $8,000,000

Goodwill = 10,000,000 - 8,000,000 = 2,000,000

Austin Corp Investor share = 25% of 2,000,000 = $500,000

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