Answer:
let your employer know how much to take out of your paycheck for taxes file a tax return
Explanation:
The W-4 Form or the Employee's Withholding Allowance Certificate, must be completed by new employees and its main purpose is to let their employer know how much federal taxes must be withheld form the employee's paycheck. Employers no longer have to routinely submit W-4 Forms to the IRS.
A W-4 form is used to let employers know how much federal income tax should be withheld from an employee's paycheck. It is based on the employee's current circumstances, not past payments. It doesn't involve paying the IRS directly and it isn't used for filing tax returns.
Explanation:The purpose of a W-4 form is to inform your employer how much federal income tax to withhold from your paycheck. When you start a new job, your employer will typically give you a W-4 form to complete. The information you provide on this form, such as your marital status, the number of dependents, and any additional amount you want to withhold, helps your employer determine the amount of taxes to deduct from your wages. It doesn't record how much taxes you paid at your previous employment and it doesn't act as a mode to pay taxes to the IRS. The W-4 form is also not used for filing a tax return.
Learn more about W-4 form here:https://brainly.com/question/31891188
#SPJ3
The annual property taxes of $1,700 were paid in arrears by the buyer. If the closing took place on June 4th and the seller paid through the day of closing, how did this appear on the settlement sheet if the 360-day method is used?
A. $727 DS, CB
B. $727 DB, CS
C. $973 DS, CB
D. $973 DB, CS
Answer:
A. $727 DS, CB
Explanation:
Step 1: Calculate the Monthly rate=
$1,700 ÷ 12 = $141.67
Step 2: Calculate the Daily rate = Monthly rate ÷ 12
= $141.67 ÷ 30 = $4.72
Since the closing took place on June 4th, it means the seller owes 5 months (January- May) and 4 days (1st-4th of June)
Hence, the seller owes the following based on steps 1 and 2
5 Months = $141.67 x 5 = $708.35
4 day = $4.72 x 4 = $18.88
Total Amount = $708.35 + $18.88 = $727.23 Approximately $727.
The treatement therefore is to Debit the Seller (DS) and Credit the Buyer (CB) with $727
The buyer's owed property taxes for the remaining of the year post-closing should appear on the settlement sheet as approximately $973 DB, CS. This is calculated by first determining the proportionate amount of property tax the seller has paid until the day of closing and then subtracting it from the total annual taxes.
Explanation:
The settlement sheet (also known as the closing statement) will show every financial transaction that has occurred between the buyer and the seller. When it comes to property taxes, if the taxes are paid through the day of closing (June 4th in this case), the portion of the taxes unpaid by the seller for the rest of the year will need to be reimbursed by the buyer.
Here's how we calculate this: The total annual property tax is $1,700. Since we're using the 360-day method (also known as banker's year), we'll consider each month to be of 30 days, making a year of 12 months equal to 360 days. The closing occurred on June 4th which means the seller paid the property taxes for 155 days (January 1st to June 4th), using a 360-day year.
First, we calculate the daily taxes: $1,700/360 = $4.72. Next, we multiply this by the 155 days the seller has paid for, getting approximately $730.77. If we subtract this from the total annual tax, we get approximately $969.23. So, this implies that the settlement sheet will read $973 DB, CS (due to rounding), meaning that the buyer owes this amount, it is a debit (DB), and it will be charged from the buyer's (CS) funds.
Learn more about Business - Real Estate Transactions here:https://brainly.com/question/33811087
#SPJ3
One of the largest automobile dealers in the city advertises a 3-year-old car for sale as follows: Cash price $3575, or a down payment of $375 with 45 monthly payments of $93.41. Susan DeVaux bought the car and made a down payment of $800. The dealer charged her the same interest rate used in his advertised offer. How much will Susan pay each month for 45 months? What effective interest rate is being charged?
Answer:
monthly payment = $81interest rate = 15%Explanation:
You can use a loan calculator to determine the the effective interest rate of the loan:
loan's principal = $3,575 - $375 = $3,200number of monthly payments = 45 or 3.75 yearsmonthly payment = $93.41interest rate = 15%
Now we can calculate Susan's monthly payment:
loan's principal = $3,575 - $800 = $2,775number of monthly payments = 45 or 3.75 yearsinterest rate = 15%monthly payment = $81
Vertical integration is defined as one company controlling every phase of the business from raw materials to transportation, manufacturing, and distribution.
a) true
b) false
Answer:
a) true
Explanation:
There are basically two types of integration which are categorized below:
1. Horizontal integration
2. Vertical integration
In horizontal integration, the company acquired another company that is doing the same type of business whereas, in the vertical integration, the company acquires another company supply chain i.e from raw material, manufacturing, distribution, retail and after-sale services.
Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean. Which type of advertising would be best for promoting Minute Yogurt?
A) informative advertising
B) reminder advertising
C) classified advertising
D) comparative advertising
E) personalized advertising
Answer: Informative Advertising
Explanation:
Informative Advertising is a form of advertising where a company gives some details about the benefits of using a product and somethings they do differently from their competitors in the market.
Minute Yoghurt needs to inform their market of the special steps of blending and cleaning they applying when producing their product.
Mayweather reports net income of $340,000 for the year ended December 31. It also reports $111,900 depreciation expense and a $12,100 loss on the sale of equipment. Its comparative balance sheet reveals a $48,600 increase in accounts receivable, a $12,300 decrease in prepaid expenses, a $18,700 increase in accounts payable, a $15,300 decrease in wages payable, a $90,400 increase in equipment, and a $121,000 decrease in notes payable. Calculate the net increase in cash for the year.
Final answer:
Mayweather's net increase in cash for the year is calculated by making adjustments to the net income for non-cash transactions and changes in working capital, resulting in a net increase of $421,100.
Explanation:
Calculation of Net Increase in Cash
To calculate the net increase in cash for Mayweather for the year, we must consider the net income and adjustments for non-cash transactions and changes in working capital based on the information provided.
Firstly, we start with the net income of $340,000. We then add back the non-cash expenses, which include depreciation expense of $111,900 and the loss on sale of equipment of $12,100, since these do not affect cash. We also consider changes in working capital: an increase in accounts receivable decreases cash, so we subtract $48,600, while a decrease in prepaid expenses increases cash, so we add back $12,300. An increase in accounts payable implies more cash, so we add $18,700; a decrease in wages payable means less cash, so we subtract $15,300.
Now, even though we have information about changes in equipment and notes payable (an increase of $90,400 and a decrease of $121,000, respectively), these typically relate to investing and financing activities and are not part of operating cash flow without further information. Therefore, we exclude these figures from this calculation.
The net cash provided by operating activities is:
Net Income: $340,000
Add: Depreciation Expense: $111,900
Add: Loss on Sale of Equipment: $12,100
Less: Increase in Accounts Receivable: $48,600
Add: Decrease in Prepaid Expenses: $12,300
Add: Increase in Accounts Payable: $18,700
Less: Decrease in Wages Payable: $15,300
Adding and subtracting these figures:
$340,000 + $111,900 + $12,100 - $48,600 + $12,300 + $18,700 - $15,300 = $421,100 net increase in cash for the year.
A division of a corporation regularly renders investment advice for a fee to its clients. The corporation also regularly performs securities transactions for the clients of its advisory service. Under the Uniform Securities Act, the corporation is:___________.A) a broker/dealer onlyB) an investment adviser onlyC) Both a broker/dealer and an investment adviserD) Neither a broker/dealer nor an investment adviser
Answer:
C). Both a broker/dealer and an investment adviser
Explanation:
The USA defines a broker/dealer as any person who is in the business of executing transactions in securities for the accounts of others or for its own account. The USA defines an investment adviser as any person who provides advice about securities as a business for compensation.
GDP is defined as:
a. the sum of all currency and coins in circulation
b. the value of all final goods and services produced by a government c. the value of all final good and services produced anywhere in the world by a nation's firms
d. the value of all final goods and services produced domestically
Answer:
d. the value of all final goods and services produced domestically
Explanation:
The gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption + Investment + Government Spending + Net Export
A negotiable certificate of deposit A. is a bearer instrument, meaning whoever holds the certificate at maturity receives the principal and interest. B. can be bought and sold until maturity. C. is a term security because it has a specified maturity date. D. all of the above.
Answer: Option D
Explanation: A Negotiable Deposit Certificate refers to a $100,000 initial face value deposit contract. These are lent by a bank and therefore can typically be offered on a highly liquid resale market,although before completion of maturity period they can not be cashed in.
An NCD is brief-term, varying from two weeks and a year. Cost will be charged at completion or the unit will be bought at a discount over its face value. Rates of interest are trad-able, and an NCD's yielding depends on the circumstances of the stock market.
Thus, from the above we can conclude that the correct option is D.
In the short run,
unemployment and inflation are positively related. In the long run they are largely unrelated problems.
and in the long run inflation and unemployment are positively related.
unemployment and inflation are negatively related. In the long run they are largely unrelated problems.
and in the long run inflation and unemployment are negatively related.
Answer:
The correct answer is: unemployment and inflation are negatively related. In the long run they are largely unrelated problems.
Explanation:
According to the Philips curve, in the short run, inflation and unemployment rate are inversely related. This implies that when inflation decreases, the unemployment rate increases.
This is indicated by the downward-sloping Phillips curve. When the government adopts a contractionary policy to reduce inflation, unemployment will increase.
In the long run, the Phillips Curve will be a vertical line at the natural rate of unemployment. The inflation rate is not related to the unemployment rate in the long run.
In the short run, unemployment and inflation are positively related, while in the long run they are largely unrelated. In the long run, inflation and unemployment are positively related.
Explanation:In the short run, unemployment and inflation are positively related. This means that when inflation increases, the unemployment rate tends to decrease, and vice versa. This relationship is known as the Phillips curve. However, in the long run, unemployment and inflation are largely unrelated problems. This is because the long-run Phillips curve is vertical, indicating that there is a natural rate of unemployment that is independent of the inflation rate.
In the long run, inflation and unemployment are positively related. This means that higher levels of inflation are associated with higher levels of unemployment, and vice versa. This relationship is observed when the economy is not at its natural rate of unemployment and is experiencing temporary deviations from this rate.
If an oil company wants to drill on public land, from whom would it secure the driling lease? a. comptroller of public accounts b. commissioner of the General Land Office c. attorney general d. board of Regents of the University of Texas
Answer:
b. commissioner of the General Land Office
Explanation:
Commissioner of the General Land Office is in charge of public domain lands in the United States.
Comptroller of public accounts keeps account of the states funds and collects taxes.
Attorney general acts as legal advisor to the government.
I hope my answer helps you.
Answer:
B) commissioner of the General Land Office
Explanation:
The Texas Commissioner of the General Land Office is the oldest state agency in Texas, it was established in 1836. Its duties include: operating the Alamo (historic site), managing state land and the coast, administer the Permanent School Fund which helps to fund public education, provides benefits to veterans, etc.
When the price is greater than the marginal cost for a firm in a competitive market,
a. the marginal cost must be falling.
b. the firm must be minimizing its losses.
c. there are opportunities to increase profit by increasing production. d. the firm should decrease output to maximize profit.
Answer: there are opportunities to increase profit by increasing production.
Explanation: one of the main purpose of doing business is to maximize profits.
When the price of a good is higher than the marginal cost (cost associated with producing one more unit) the business should increase production in order to maximize profits. This is really effective in a competitive market as competitors will look for ways to make their products sell too.
Companies use advertising to shift consumer demand. On which of the following demand shifters do you think advertisers most often rely?a. changes in incomeb. the price of related goodsc. changes in tastes and preferencesd. the number of buyerse. expectations regarding the future price
Answer:
C) changes in tastes and preferences
Explanation:
Advertising will try to change the tastes and preferences of consumers, i.e. advertising will try to make consumers like and want the product being advertised.
Advertising cannot change the income of the consumers or the price of related goods.
It will try to increase the number of buyers and some promotional campaigns that include advertising can temporarily change the price of the product being advertised.
An application for health insurance includes all of the following information, except:
A. The name of the insured.
B. The page number showing its relationship to the total number of pages in the illustration.
C.The page number
D. A statement that the benefits in the illustration are guaranteed.
Answer:
Answer is option D, i.e. A statement that the benefits in the illustration are guaranteed.
Explanation:
The application of health insurance includes the name of the person insured, the page number that shows its relationship to the total number of pages in the illustration and the page number. However, during the time of the application process, the statement whether the benefits in the illustrations are guaranteed or not is not mentioned in the application form.
An application for health insurance includes all of the following information, except option D a statement that the benefits in the illustration are guaranteed.
Explanation:An application for health insurance includes all of the following information, except:
The name of the insured.The page number showing its relationship to the total number of pages in the illustration.The page numberA statement that the benefits in the illustration are guaranteed.The correct answer is D. A statement that the benefits in the illustration are guaranteed. This information is not typically included in an application for health insurance as it pertains more to the details provided in an illustration of benefits.
Learn more about Health here:https://brainly.com/question/17306523
#SPJ12
The written test for provisional license applicants has 46 questions;a maximum of ________ errors is allowed.
Answer:
7
Explanation:
When a person wants to learn driving, he has to collect a license after learning the driving quite quickly. That driving license is called a provisional driving license. Generally, there are 46 questions in that examination. A person has to answer 39 correct answers. Therefore, seven questions can be wrong, and it is the maximum allowance to pass the exam and to get the license.
What is the efficient markets hypothesis, and how does it relate to random walks?
Answer: Answer is in Explanation below
Explanation: The efficient market hypothesis expresses that assets such as share prices are set to reflect all the information available. This means that the prices found in the markets only respond to new information.
A random walk states that share market prices change randomly. This means that the prices cannot be forecasted. This financial theory makes it consistent with the efficient market hypothesis, as these prices are set based on available information, and only change when new info is introduced into the market. Investors do not have a say in what the price should be, and cannot claim that the share price is over or undervalued.
Investors tend not to consider social responsibility when evaluating a company, provided the company has a strong bottom line.
Answer:
TRUE
Explanation:
The investors in a company will primarily look at FIGURES when they want to invest because the primary aim of investment is to make profit.
So primarily the focus is the financial performance of the company and not social responsibility. The expectation is to have a return on investment over time. Hence investors rather ask 'does the company make money?' rather than 'how does the company make money?'
Compared to the other states, where did Texas fall in the SPI policy liberalism ranking in 2012?
Answer:
Ranked 34th
Explanation:
Texas fall in the SPI Policy liberalism ranking at number 34th in year 2012 which was ranked 36th in year 2008.
Texas ranks as one of the more conservative states as it oppose gun control, are more often pro-life/ anti-abortion, and favor regressive consumer taxes
The states which are ranked near or below Texas are either Western or Southern states
We must see that policy liberalism rankings are not critiques; they provide insight into the kinds of policies that can be expected to be supported
Organic Produce, Inc. has 43 comma 000 shares of common stock outstanding and 5 comma 000 shares of preferred stock outstanding. The common stock is $ 0.02 par value; the preferred stock is 7% noncumulative with a $ 100.00 par value. On October 15, 2019, the company declares a total dividend payment of $ 47 comma 000. How much dividend will be paid to the preferred stockholders?
Answer:
$49,000
Explanation:
Data provided in the question:
common stock outstanding = 43,000
Preferred stock outstanding = 5,000
Value common stock = $0.02 par value
Value preferred stock = 7% noncumulative with a $ 100.00 par value
Total dividend payment declared = $47,000
Now,
Dividend paid to the preferred stockholders will be
= Preferred stock outstanding × Value preferred stock
= 7,000 × $100 × 7%
= 7,000 × $100 × 0.07
= $49,000
On December 15, 2019, a company receives an order from a customer for services to be performed on December 28, 2019. Due to a backlog of orders, the company does not perform the services until January 3, 2020. The customer pays for the services on January 6, 2020. The revenue principle requires the revenue to be recorded by the company on:
Answer:
The revenue principle requires the revenue to be recorded by the company on January 3, 2020.
Explanation:
Revenue recognition principle states that income is recorded when it is earned irrespective of when the cash is received.
Earning of Income neither means receiving of order as on December 15, 2019 nor commitment of completing the order as on December 28, 2019.
The customer pays for the services on January 6, 2020. This date will not be considered as the date of income earning.
Date of Income earning is when the services are rendered that is on January 3, 2020.
Final answer:
The revenue should be recorded on the date the service is performed.
Explanation:
Revenue recognition is an accounting principle outlining when and how to recognize revenue from sales. It involves determining the amount, timing, and certainty of revenue earned. Adhering to standards like ASC 606, businesses recognize revenue when goods or services are transferred to customers in amounts that reflect the consideration the business expects to receive.
The revenue principle requires the revenue to be recorded by the company on the date the service is performed. In this case, the company did not perform the services until January 3, 2020, so the revenue should be recorded on that date. It doesn't matter when the customer paid for the services, the revenue recognition should match the performance of the service.
The direct materials budget is prepared using information from the ________ budget.
Answer: Production budget
Explanation:
The production budget is basically permit the organization for tracking the cost and all the production details that is required for the inventory necessary requirement of an organization.
The production budget is also known as the financial plan of the company for estimating the overall production budget by proper scheduling.
The one of the main factor of the production budget is the sales target as it basically calculated the total number of products that are manufactured in an organization.
Therefore, Production budget is the correct answer.
which of the following is not allowed by scrum refactoring velocity tracking relaease planning hardening sprints
a. Using Story Points
b. Hardening Sprints
c. Release Planning
d. Using Planning Poker
Answer:
(B) Hardening sprints
Explanation:
Hardening Sprints are not allowed because the subject of hardening should be continuously address throughout normal Sprints.
Or if the question has the following options:
Which of the following is not allowed in Scrum?
a. Using Story Points
b. Hardening Sprints
c. Release Planning
d. Using Planning Poker
Answer:
(B) Hardening sprints
Explanation:
Using Story Points, Release Planning, Using Planning Poker are not mandatory but allowed. Only hardening sprints are not allowed.
Hardening Sprints is the method not promoted in Scrum among the given options because it suggests a failure in the development process. Other options like Using Story Points, Release Planning, and Using Planning Poker are used in Scrum for productivity measurement, release management, and decision-making.
Explanation:The question is asking for the technique out of the given options that are not promoted or typically used in Scrum, a popular framework for agile project management. The correct answer is (b) Hardening Sprints. Scrum encourages continuous integration and high-quality output throughout the project lifecycle. As such, hardening sprints, which are essentially buffers used to fix issues and stabilize the project at the end of the product increment, usually suggest a failure in the development process and are thus not supported by Scrum.
Other options such as Using Story Points (a), Release Planning (c), and Using Planning Poker (d) are all methods encouraged and utilized in Scrum to measure productivity, manage release schedules effectively, and make team decisions, respectively.
Learn more about Scrum methodology here:https://brainly.com/question/33059464
#SPJ3
A carbon tax would be an efficient method of addressing the problem of global warming because:a. it eliminates the positive externalities associated with global warming.b. it forces firms to internalize the external cost of emissions.c. carbon taxes are an external cost.d. it is less likely than the cap-and-trade policy to result in rising prices.e. fims are likely to prefer the carbon tax over the cap-and-trade policy
Answer:
.b. it forces firms to internalize the external cost of emissions
Explanation:
A carbon tax is a fee imposed by the government on any firm that burns fossil fuels. Fossils most used by firms include gasoline, coal, oil, and natural gases. Burning of these fossils emits greenhouses gases such as carbon dioxide and methane, which creates global warming by heating the atmosphere.
A carbon tax forces enterprises to pay for the harsh effects of global warming on society. If the tax is set at a high rate, it deters firms from burning fossils. Companies adopt environmentally friendly production processes to avoid the carbon tax.
Describe the basic rights of common stockholders. What are the key differences between common and preferred stock?
Answer:
Some rights of common stockholders are given below.
Voting power on major issues.
Ownership in a portion of the company.
The Right to transfer ownership.
Right to receive declared Dividends.
Opportunity to inspect corporate books, minutes file and other records.
The right to sue for wrongful acts.
Right to attend AGM.
Differences between common and preferred stock
Preferred stock have no voting right while common stock holders have voting right.
When interest rates rise, the value of the preferred stock declines, and vice versa. With common stocks, however, the value of shares is regulated by demand and supply of the market participants.
Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.
Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.
Which of the following is an example of a firm’s derived demand? a. Workers with higher levels of education earn more, on average, than workers with lower levels of education. b. Factors that decrease the demand for labor will decrease the equilibrium wage. c. A tractor manufacturer’s demand for assembly-line workers is inseparably linked to the supply of tractors. d. All of the above are correct.
Answer:
c. A tractor manufacturer’s demand for assembly-line workers is inseparably linked to the supply of tractors
Explanation:
Derived demand is when the demand for a good, service or labour is as a result of demand for another good or service.
The demand for assembly line workers is as a result of demand for tractors. If there was no demand for tractors ,there would be no need to employ assembly line workers.
I hope my answer helps you.
Explain the several processes by which the Federal Reserve can increase or decrease the money supply.
Answer:
Monetary policy instruments:
(a) Reserve requirements:
It is the part or portion of the deposits with the banks that have to be kept with the fed. If this reserve ratio increases then as a result money supply decreases because now banks have to keep more funds with the fed.
(b) Open market operations:
It is a monetary policy instrument used by the Federal reserve for controlling the money supply in an economy. When there is a need to increase the money supply then fed purchases the government securities from the public and vice versa.
(c) Discount rate:
It is the interest rate at which federal reserve lends money to the banks. If there is an increase in this rate then banks have to pay higher interest to the fed. This will reduce lending capability of the banks and hence, decreases the money supply.
Which of the following statements reflects the transferability of ownership rights in a corporation? a) A stockholder must obtain permission from at least three other stockholders before selling shares. b) A stockholder may dispose of part or all of his shares. c) If a stockholder decides to transfer ownership, he must transfer all of his shares. d) A stockholder must obtain permission from the board of directors before selling shares.
Answer: Option B
Explanation: In simple words, a corporation refers to an entity which has its own separate legal identity from its owners. Generally these entities works on a very large scale and the ownership rights of such companies is divided into many shares which are hold by several different individuals.
The holders of stock of such entities gets return in form of dividend and can resell their shares for capital gain in an open market of securities. As the owner and the company are two different entities the owner is not liable to report for the action of selling shares to the company.
The correct answer is b) A stockholder may dispose of part or all of his shares. Corporate stock ownership allows easy and flexible transfer of shares without needing permission, unlike partnerships or sole proprietorships.
When dealing with corporate stock ownership, one key benefit is the ease of transferability of shares.
Unlike a sole proprietorship or partnership, where selling interests can be complicated and require approval from other partners or the sale of the entire business, corporate stockholders can buy and sell shares without needing permission from the corporation's board or other stockholders. This flexible transfer system encourages more investors, as it allows them to sell part or all of their shares easily, depending on their financial needs.
_________ typically involves researching a specific market to determine its size, trends and potential.
Answer:
correct fill up is marketing research
Explanation:
solution
marketing research is typically involves researching because marketing research basic reason is for carrying out research to findout change in consumer behavior due to change in element of the marketing mix
like product , prize , size, tread and potential etc
and it involves 2 types of data
Primary informationSecondary informationMarket research always provide relevant data to help you for solve marketing challenges
so here correct fillup is marketing research
The United States trade deficit first became a problem in the 1970s because?a. The prices of imports from Japan increased dramatically.b. The prices of imports from China increased dramatically.c. The price of foreign oil was raised by APEC.d. The price of foreign oil was raised by OPEC.
Answer:
The price of foreign oil was raised by OPEC.
Explanation:
By the end of 1960s the foundation of OPEC (Oil producers and exporter countries) defined the collusion of some oil producer countries to increase their power over the oil market. With the political crisis in the Arab world, the OPEC to advantage of shortage in oil world supply and increase the price of oil. Being the US a net importer of oil, the increment in oil prices turned into a trade deficit in a short time.
Consider a bank balance sheet, with "Assets" on the left and "Liabilities" on the right side. Identify where the following items belong. I. Deposits this bank holds in an account with another private bank Deposits this bank holds in an account with another private bank. II. Borrowings from another bank in the interbank loan market Borrowings from another bank in the inter bank loan market. A. Both liabilities. B. Both assets. C. I: assets; II: liabilities. D. I: liabilities; II: assets.
Answer:
C. I: assets; II: liabilities.
Explanation:
Assets are the physical and intangible properties of business or individual. They are resources used in generating revenues or profits for a business. Assets add value or increase the capital of a company. Examples of assets include cash, inventory, investments, office equipment, and plant and machinery.
Liabilities are debts or obligations that a firm or individual owe to other entities or individuals. Liabilities decrease the net value of a company. Examples of liabilities include Bank debt, money owed to suppliers (accounts payable), Wages owed, and Mortgage debt.
Cash belonging to a bank but held in another bank account is, therefore, an asset, while money borrowed is a debt, hence a liability.
Monetarist Theory states that:
A. increased government spending will stimulate the economy
B. tax rate reductions and lower government spending will stimulate the economy
C. the actions of the Federal Reserve control the level of economic output
D. tax rate increases and increased transfer payments will stimulate the economy
Answer:
The correct answer is (c)
Explanation:
Monetary economists believe that Federal Reserve controls the economic output. The policy Federal Reserve Bank applies determines the economic situation of a country. The Federal Reserve is liable to apply the monetary policy, and that monetary policy moves the country's output. If money supply increases in the economy it can lead to inflation and lower interest rate.