Answer:
Loans
Explanation:
The money-creating transactions of a bank that directly impact the money supply are loans.
We can illustrate why with this simple example:
Suppose Bank of America gets a deposit of $800 and the reserve requirement is 20%, thus, it will keep $160 in reserve and loan out the remaining $640.
Bank of America Balance Sheet
Assets Liabilities
Reserves $160 Deposits $800
Loans $640
The $640 that is loaned out is money that is in the hands of a person other than the one who deposited the $800 in the first place. In other words it is new money that Bank of America has created when it made the loan.
if the rate of appreciation in the past year has been 2% of the previous years value what is the current value of a house that was appraised at 800,000 one year ago
Answer:
816,000
Explanation:
Since in the past, annual rate of appreciation has been 2%, it is reasonable to assume that the same rate of appreciation will apply in the current year.
Accordingly, for a house appraised at 800,000 one year ago, its current value is calculated as follows.
Current Value = Previous Year's Value * (1 + Appreciation Rate)
= 800,000 * (1 + 2%)
= 800,000 * 1.02
= 816,000
Tom Cruise is a 17 year old high school student who works as an assistant manager at the local movie theater. If an increase in the price of movie tickets results in an increase in total revenue at the theater, this is evidence that the demand for movie tickets is:_________a) price elasticb) price inelasticc) unitary elasticd) perfectly inelastice) perfectly elastic
If an increase in the price of movie tickets results in an increase in total revenue at the theater, this is evidence that the demand for movie tickets is price inelastic.
Option B
Explanation:
Price elasticity of production is often used in economics to explain the reactivity, or elasticity, to increase prices of the quantity requested by a good or service, when only prices change.
In the case of a change in the price of $200 to $202, for example, a 1% rise, and demand change between 1,000 to 995 units, a reduction of less than 1%, the drugs are inelastic.
The drug would be regarded as completely inelastic if the price increase had no impact on the amount ordered. Medical needs and procedures are relatively inelastic since they are necessary for survival, while luxury goods, like cruises and sports cars, are usually fairly elastic.
Mary Ellen works at Hershey in the marketing department. Recently, Hershey developed a new chocolate bar that the company is excited about. Mary Ellen's job is to try to increase awareness of the product, get people to try it, and obtain desirable distribution at retail stores. Which consumer sales promotion method should Mary Ellen select based on these criteria?
Answer:
Free Samples
Explanation:
The consumer sales promotion method that Mary Ellen should select based on these criteria is the free samples method.
Free samples method uses small quantities or few units of the new product of Hershey, as give-away; trying to lure people into trying it by way of product testing. This can be done by placing them in a tray in supermarkets and malls OR delivered door to door. They can also be attached to another existing well-known product, by way of 'bundle pricing'.
By so doing the awareness for the new chocolate will be created
Technical standards in high-technology industries are:
a. general guidelines proposed by industry leaders.
b. specifications that producers adhere to when making a product or a component of it.
c. product features desired by consumers.
d. product specifications imposed by the federal government.
e. specifications developed by each producing company for its own products and product components.
ABC Farm Supplies has adopted policies and procedures designed to eliminate non-discriminatory practices in hiring and promoting employees who come from previously disadvantaged groups. Which term refers to ABC’s active effort to recruit, hire and promote people from disadvantaged particular groups?
Answer:
Affirmative action
Explanation:
This is a term that describes effort or action to recruit disadvantaged groups or groups previously excluded. This is also used to ensure gender balancing in organisations. Some organisations consciously seek to fill up top positions at their board with women. The Beijing conference on women empowerment sought for increased women participation in key decision positions.
ABC effort can be described as an Affirmative action towards recruiting a group that was previously disadvantaged or discriminated upon previously.
At December 31, 2019 ABC Company’s inventory records indicated a balance of $878,000. Upon further investigation it was determined that this amount included the following: · $168,000 in inventory purchases made by Howell shipped from the seller 12/27/19 terms FOB destination, but not due to be received until January 2nd · $111,000 in goods sold by ABC with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th. · $9,000 of goods received on consignment from Westwood Company What is ABC’s correct ending inventory balance at December 31, 2019?
Answer:
$ 701,000
Explanation:
Balance At December 31, 2019 = $878,000
$168,000 will be deducted since these are not due to be received until January 2nd as well as $9,000 will also be deducted
$878,000 - $168,000 - $9,000 = $ 701,000
In order to calculate MACRS depreciation, the business only needs to know the asset's depreciable basis, the recovery period, and which depreciation method (i.e. 200% declining balance) is used. True or false?
Answer:
False
Explanation:
MACRS represent Modified Accelerated Cost Recovery System depreciation and it is a depreciation system used in the United States specifically for tax purposes. This method of depreciation allows the recovery of the capitalized cost of fixed assets based on annual deductions over a period of time.
Apart from the depreciable basis, the recovery period and the depreciation method, calculating depreciation based on MACRS also require knowledge of the specific date the asset was placed in service as well as the specific convention that applies to the depreciable asset, for instance, is it a half year or quarter convention?
The convention will help determine the following:
1. The applicable depreciation table based on when the asset was placed in service
2. The amount of depreciation
3. The depreciation method is applicable.
The available depreciation conventions in MACRS include the half-year, mid-quarter and mid-month conventions.
Sofie and the members of her homeowner's association have homeowner's policies on their coastal dwellings. They have heard that there are 11 named hurricane storms predicted for their coastal area this year. Sofie and the homeowner association members plan to increase their homeowner's property coverage limits to handle their concern about the possible hurricane damage. Their action is known as
Choose one answer.
A. Managing the book of business.
B. Adverse selection.
C. Misclassification.
D. Increasing capacity.
Answer:
(B). Adverse selection.
Explanation:
Adverse selection in insurance occurs when customers obtain insurance coverage based on certain information they possess about a potential risk, which the insurance company is usually not aware of. For example a person who does a dangerous job may want to purchase a disability insurance.
Sofie and the members of her homeowner's association, looking to increase their homeowner's property coverage limits, due to information they have about possible hurricane storms in the area, is an example of adverse selection.
The multiplier effect of fiscal policy predicts that an increase in government spending of $150 billion will increase total income by $750.00 billion if the marginal propensity to consume is 0.80.
If we account for crowding-out, then the increase in aggregate demand will be:
A. more than $750.00 billion.
B. less than $750.00 billion.
C. exactly $750.00 billion.
D. none of these
Answer:
B) less than $750.00 billion.
Explanation:
Crowding-out refers to a situation where private consumption and investment are lowered because government spending uses available financial resources and increases interest rates.
Crowding-out is the result of a government having to borrow money or increase taxes in order to increase spending.
Compensating balances
a. are a particular form of collateral commonly required on commercial loans.
b. allow banks to monitor firms' check payment practices, which can yield information about their borrowers' financial conditions.
c. are a required minimum amount of funds that a borrower (i.e., a firm receiving a loan) must keep in a checking account at the bank.
d. are all of the above.
Answer:
The correct answer is D
Explanation:
Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.
It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.
So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.
Under Title VII, employers who have had an incident of sexual harassment reported to them:
a) are required to take some action to investigate the complaint.
b) can be held liable in tort for their inaction.
c) must take disciplinary action immediately.
d) both a and b
e) none of the above
Answer:
A) are required to take some action to investigate the complaint.
B) can be held liable in tort for their inaction.
Explanation:
Title VII of the Civil Rights Act of 1964 prohibits discrimination in any aspect of employment, e.g. race, color, gender, religion, etc.
Title VII states that sexual harassment is a form of discrimination.
Sexual harassment happens when, including but not limited to the following:
The victim as well as the harasser may be a woman or a man, they don't have to be of the opposite sex. Any member of the organization may be a harasser, e.g. victim's supervisor, a co-worker, etc. A person doesn't need to be specifically harassed but can be anyone affected by the offensive conduct. Sexual harassment may occur without economic treat or damage to the victim. The offensive conduct must not be welcomed nor reciprocate.Equipment was purchased at a cost of $78,000. The equipment had an estimated useful life of five years and a residual value of $3,000. Assuming the equipment was sold at the end of Year 4 for $8,000, determine the gain or loss on the sale of equipment. (Assume the straight-line depreciation method.)
Answer:
Loss of $7,000
Explanation:
Data provided in the question:
Purchasing cost = $78,000
Residual value = $3,000
Useful life = 5 years
Selling cost = $8,000
Now,
Annual depreciation = [ Cost - Residual value ] ÷ Useful life
= [ $78,000 - $3,000 ] ÷ 5
= $75,000 ÷ 5
= $15,000
Therefore,
Accumulated depreciation of 4 years = 4 × Rate of depreciation
= 4 × $15,000
= $60,000
Therefore,
Book value at the end of 4 year = Cost - Accumulated depreciation
= $75,000 - $60,000
= $15,000
Since,
Book value at the end of 4 year is greater than the selling cost
therefore,
there is loss = Book value - Selling cost
= $15,000 - $8,000
= $7,000
Hence,
Loss of $7,000
In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves is ___________.
Answer:
Market supply curve
Explanation:
Market supply curve in a perfectly competitive is the sum of the individual firms. It is shown as the upward portion of the marginal cost curve that lies above the average variable cost curve. The movement along this curve shows the production of the firm.
The market supply curve represents the positive relationship between the price of the commodity and the quantity supplied of the commodity. This means that an increase in the price of the commodity will lead to an increase in the quantity supplied of that commodity.
Final answer:
In a perfectly competitive market, the horizontal sum of all individual firms' supply curves forms the market supply curve, which indicates the total quantity supplied at various price levels.
Explanation:
In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves represents the market supply curve. This is because each firm is a price taker and can sell as much of the good as it wishes at the going market price. Therefore, at any given price level, the total quantity supplied by the market is the sum of the quantities supplied by all the individual firms. To obtain the market supply curve, you simply add up the quantities supplied by all the firms at each price level, which can be visually represented as horizontally summing their supply curves.
This coherent aggregation reflects the fact that in a perfectly competitive market, firms are reacting to the same price signals and independently adjusting their output, and as a result, the market's overall supply behavior can be described by combining their individual supply decisions.
A planning budget based on a single predicted amount of sales or production volume is called a:
Answer:
Fixed budget
Explanation:
As the name suggests, the fixed budget is that budget in which the sales or production volume remains the same plus it is based on the planning budget.
This is also known as the static budget. The activity level remains constant plus it does not change in business fluctuations. All the items in this budget would remain same like - sales, sales commission criteria, and all other items
If for a certain economy the growth rate of the money supply is _____ percent, the growth rate of the velocity of money is 0.5 percent, the rate of inflation is 2.5 percent, and the real growth rate is 2 percent, then the quantity theory of money holds
Answer:
Explanation:
MV=PT
M=2.5*2/.5
M=10
The size of the multiplier which is applied to a change in AD is dependent upon the ________..
Answer:
Explanation:
The multiplier is calculated by two marginal decisions by firms and individuals. A firm can decide whether to save the revenue or to consume it, therefore there is marginal propensity to consume and marginal propensity to save as options for both firms and individuals. Therefore, the size of the multiplier which is applied to a change in AD is dependent upon size of the marginal propensity to consume and marginal propensity to save.
Under the Uniform Securities Act, an investment adviser may be formed as which of the following?
I Corporation
II Partnership
III Association
IV Broker-dealer
A. I and II
B. III and IV
C. I, II, III
D. I, II, III, IV
Answer:
C) I, II, III
Explanation:
Investment advisers and broker-dealers can be formed as a corporation, partnership, an association, even a sole proprietorship, etc.
But investment advisors cannot be formed as broker-dealers, nor broker-dealers can be formed as investment advisors. Investment advisors and broker-dealers are separate entities, and they are regulated separately.
When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at $10 an hour, the real wage rate _______.
Answer:
Decrease by 5%
Explanation:
Data provided in the question:
CPI in 2016 = 200
CPI in 2017 = 210
Constant wage rate = $10 an hour
Now,
CPI change during the period = [ CPI in 2016 ÷ CPI in 2017 ] × 100%
= [ 200 ÷ 210 ] × 100%
= 95.23% ≈ 95%
Hence,
The the real wage rate will decrease by (100% - 95%) i.e 5%
Which should be required by a company to mitigate the impact of a custom piece of software being installed by a vendor in case the vendor later goes out of business?
Answer:
Correct control of operational risk related with customized software piece is creating a guarantee of the capacity to replicate the custom piece in case of future problems.
Explanation:
In this case, if it is considered that the custom software piece is too specific for the company, a negotiation with the vendor establishing the company ownership and development of the custom software in control of the company is critical
Branding efforts rely on simple images, icons, logos, words, and brief taglines to communicate enormous amounts of meaning about the organization or its products and services. The meaning depends on context. Branding magic happens when communication strategists successfully align an organization's actions, communication, and culture with the cultural contexts of key publics. This type of branding context is the application of ___________.
Answer:
low-context communication
Explanation:
Low-context communication cultures are those that communicate information in direct, explicit, and precise ways.
It is low-context since branding efforts rely on simple images, icons, logos, words, and brief taglines to communicate enormous amounts of meaning about the organization or its products and services
Accounts Receivable $6,000 Accounts Payable 7,000 Salaries Expense 6,000 Repairs Expense 900 Truck 12,000 Equipment 9,000 Notes Payable 24,000 Cash 12,000 Supplies Expense 9,000 Service Revenue 24,000 Gasoline Expense 7,100 Salaries Payable 1,500 Calculate the net income
Answer:
net net income is $1000
Explanation:
given data
Accounts Receivable = $6,000
Accounts Payable = 7,000
Salaries Expense = 6,000
Repairs Expense = 900
Truck = 12,000
Equipment = 9,000
Notes Payable = 24,000
Cash = 12,000
Supplies Expense = 9,000
Service Revenue = 24,000
Gasoline Expense = 7,100
Salaries Payable = 1,500
solution
we get here net income that is express as
net income = Total revenues and gains - Total Expenses ..............1
here Total revenues and gains is Service Revenue = 24,000 and
Total Expenses = salaries expenses + repair expenses + supplies expenses + gasoline expenses
Total Expenses = 6,000 + 900 + 9,000 + 7,100
Total Expenses = 23000
so net income = Total revenues and gains - Total Expenses
net income = 24000 - 23000
so net net income is $1000
If you were to purchase a capital appreciation bond from the local school district, how would your investment be paid back?
Answer:
principal and interest payments upon bond maturity.
Explanation:
Based on the information provided within the question it can be said that your investment would be payed back on principal and interest payments upon bond maturity. A capital appreciation bond is a municipal security which is reinvested at a stated rate, and once the maturity date is reach, only then can it be redeemed for it's face value plus all of the accrued interest. These bonds usually take between 10-20 years to mature.
An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this will
A. shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall
B. shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
C. shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
D. shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.
Answer:
c.) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease
Explanation:
As due to insect , the cotton crop growth decreases due to which supply of cotton crop in market will also decreases and move to the left thud the price of cotton crop will increase in market and because of high prices demand for cotton crops will also decreases and equilibrium will restore.
The correct prediction is that the insect infestation leading to reduced cotton crop will cause the supply curve to shift to the left, increase the equilibrium price of cotton, and result in a decreased quantity demanded.
Explanation:When an insect infestation reduces the cotton crop, resulting in this year's crop being only half of what was produced last year, the correct prediction would be:
C. shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
When a natural event like an insect infestation damages a significant portion of an agricultural crop, the supply of that crop is reduced. This reduction in supply is depicted by a leftward shift in the supply curve because there is less cotton available at any given price. As a result, the equilibrium price will typically increase due to the scarcity of the product. However, the increase in the price of cotton will lead to a decrease in the quantity demanded since buyers may not be willing or able to purchase as much at higher prices.
Briefly explain whether the value of U.S. exports is typically larger or smaller than the value of U.S. imports. The value of U.S. exports
Answer:
Explained briefly in the explaination box.
Explanation:
The amount of U.S. exportation has remained smaller since concerning from the year 1980. The U.S import rates decreased for the following sequential year meanwhile 1984, declining 1 .7 percent later a 2.5-percent decrease in 1983. The descending trend in import costs through the year, that was extra broad-based than in 1983 meanwhile aggregate price changes were predominately affected by lowering energy costs.
A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will make a binding determination regarding the matter. This type of settlement is called___________.
Answer:
Arbitration
Explanation:
Based on the information provided within the question it can be said that this type of settlement is called Arbitration. This term refers to a form of resolving disputes outside of the court system by bringing in a third party who will render an "arbitration award" that will make a binding determination on the dispute. Which is completely enforceable in the courts.
Arbitration is a type of settlement where a third party makes a binding determination in a dispute between a buyer and seller. It is an alternative to court and involves an arbitrator listening to both sides and making a decision.
Explanation:The type of settlement where a buyer and seller agree to submit their dispute to a third party who will make a binding determination is called arbitration. Arbitration is a form of alternative dispute resolution that avoids negotiation and meetings between the parties.
In arbitration, the third party, called an arbitrator, listens to both sides of the dispute and makes a decision that is legally binding. This process is often used as an alternative to going to court and can be less time-consuming and expensive.
Receiving stolen property is a crime that applies only to those who sell stolen property for profit.
Answer: False
Explanation: If someone buys stolen goods they are just as guilty as the person who stole the goods. Moreover selling stolen goods at a profit doesn't make someone more guilty than the person who buys the goods. It is still a crime on both the person selling the goods and the person purchasing the goods, therefore harsh sentences can be given to both parties involved.
Chloe talked to several stockbrokers and made the following conclusions. Which, if any, of Chloe's conclusions are correct? A. It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in. B. Some people have made a lot of money in the stock market by using insider information, but these cases are not contrary to the efficient markets hypothesis. C. Stock prices, even if not exactly a random walk, are very close to it. D. All of Chloe's conclusions are correct.
Answer: D
Explanation:
All of Chloe's conclusions are correct. These conclusions are true concerning all stock brokers
Suppose that Bob places a value of $10 on a movie ticket and that Lisa places a value of $7 on a movie ticket. In addition, suppose the price of a movie ticket is $5. 15. Refer to Scenario 12-2. Suppose the government levies a tax of $3 on a movie ticket and that, as a result, the price of a movie ticket increases to $8. What is total consumer surplus after the tax is imposed?
Answer:
$1
Explanation:
We can use the simple consumer surplus formula:
Consumer surplus = Maximum Price Willing to Pay - Actual Price
For Bob
Consumer Surplus = $10 - $8
= $2
For Lisa
Consumer Surplus = $7-8
= $-1
So, the total consumer surplus is $1
A department has budgeted monthly manufacturing overhead cost of $510000 plus $3 per direct labor hour. If a flexible budget report reflects $984000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was__________.
Answer:
Direct labor hour will be 158000
Explanation:
We have given manufacturing overhead cost = $510000
An total budgeted manufacturing cost = $984000
So balance variable cost = $984000 - $51000 = $474000
It is given that $3 per direct labor hour
We have to fond the number of labor hours
So number of direct labor hours will be [tex]=\frac{474000}{3}=158000[/tex]
So dire t labor hour will be 158000
Suppose the supply curve for wool mittens is represented as: Q = 50 + 1/2X - 5Y - 24Z. Which one of the following statements below is true?A. The variable Y could be the price that wool mittens sell for in the market. B. The variable X could be the price of the wool used to make mittens. C. The variable Y could be the price of the wool used to make mittens.D. The variable X could be consumers income.
Answer:
C) The variable Y could be the price of the wool used to make mittens.
D) The variable X could be consumers income.
Explanation:
quantity supplied = 50 + 1/2X - 5Y -24Z
In this equation if X increases, then the quantity supplied increases. Therefore X can either be the product's price or consumer income.
In this equation if Y or Z increase, then the quantity supplied decreases. Therefore Y or Z are production costs, either labor or materials.
In the given supply curve equation, the variable Y is unlikely to represent the price of mittens sold in the market, as its relationship with the quantity supplied (Q) is negative. It's probable, though, that Y or X might represent the price of wool used to make mittens or consumer's income, as an increase in these values could reduce Q.
Explanation:In the equation given the variables X, Y, and Z can be thought to represent various factors that might influence the supply of wool mittens.
Option A suggests that the variable Y could be the price that wool mittens sell for in the market. In a typical supply curve equation, the variable representing quantity supplied (Q) is positively related to the price at which the good is sold because as price increases, suppliers are willing to produce more of the good. In this equation, however, Y is negatively related to Q, implying that as Y increases, the quantity supplied decreases. Therefore, A is not correct.
Choice B proposes that X could represent the price of wool used to make mittens. This is plausible as an increase in the price of a key input (wool, in this case) would likely reduce the quantity that suppliers are willing and able to produce (Q), because it would make production more costly.But since the relation is positive, hence B is also incorrect.
Option C and Option D sound resonable as any increase in the price of wool or decrease in the consumers income can reduce the supply of the wool mittens. Hence, C or D is the correct answer.
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