Suppose the country's money supply is equal to $10
million.
The FED buys $4 million worth of bonds from Wells Fargo customers
depositing it in their bank accounts.
Wells Fargo then lends out 60% of the new deposits.
At this point:
1. What is the new total money supply?
2. What is the money multiplier?
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KeyBank has assets of $101 in reserves, $27 in bonds, and
$600 in loans as well as $370 in Demand Deposits.
3. Given that information, what is KeyBank's Owners'
Equity?
4. If KeyBank sells all its bonds to the FED,
what is the change on the money supply if the money multiplier is
5?
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5. Suppose Ringo buys a $5000 bond from the FED.
He bought that bond with a check on his demand deposit at Wells
Fargo.
If the money multiplier is 5,
then by how much will the money supply change?
In: Economics
Assignment Question(s):(5 Marks)
Q1- Provide an example of each title here and then record the journal entries .
Following is the first given answer.
1-Purchasing Equipment for cash
Given answer:
ABC company purchased equipment for SAR20,000 cash .
Cash 20,000
Consulting Revenue. 20,000
2-Issuing common stocks receiving cash.
3-Providing service receiving cash.
4-Purchasing supplies on credit.
5-Borrowing money from a bank.
6-Paying employees their salaries.
Q2- What is the accrual basis of accounting? When should revenue and expense be recognized in the accrual basis? Provide an example. (1 Mark).
Q3- On your own words, explain the purpose and the importance of the income statement, and prepare the income statement for ABC company based on the following information taken from the trial balance in 2019 (2 Marks)
|
Consulting revenue |
|
SAR70,000 |
|
Rental revenue |
|
30,000 |
|
Supplies expense |
5,000 |
|
|
Rent expense |
20,000 |
|
|
Wages expense |
30,000 |
|
In: Accounting
Problem 1) W congested computer network has a 2% chance of losing a data packet (lost packets must be resent), and a packet losses are independent events. An e-mail message requires 100 packages.
(1) what is the distribution of the number of data packets that must be resent? Please choose one below.
(A) Binomial (B) Geometric (C) Poisson
(2) What is the probability that at least one packet must be resent?
(3) What is the mean of the number of packets that must be resent?
(4) What is the standard deviation of the number of packets that must be resent?
Problem 2) From 500 customers, a major appliance manufacturer randomly selects 5 customers without replacements. The company estimates that 125 of the customers will reply to the survey.
(1) What are the possible values that X takes where X = the number in the same reply tot he survey?
(2) What is the probability that at most one customers in the sample reply tot he survey?
In: Statistics and Probability
How effective is the U.S. Securities and Exchange Commission as a regulator of the fund raising process by publicly listed corporations? Discuss.
In: Finance
Outline the rationale for and benefits of a publicly funded health service. (20 marks, approximately 250/300 words please)
In: Economics
Explain a trend and the main reason for boards of directors and shareholders becoming more active in the operations of publicly held corporations
In: Economics
Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below:
| Exchange Corp. Analysis of Revenues and Costs For the Month Ended May 31 |
|||||||||
| Actual Unit Revenues and Costs |
Planning Budget Unit Revenues and Costs |
Variances | |||||||
| Exchanges completed | 30 | 25 | |||||||
| Revenue | $ | 570 | $ | 660 | $ | 90 | U | ||
| Expenses: | |||||||||
| Legal and search fees | 227 | 210 | 17 | U | |||||
| Office expenses | 215 | 242 | 27 | F | |||||
| Equipment depreciation | 25 | 30 | 5 | F | |||||
| Rent | 75 | 90 | 15 | F | |||||
| Insurance | 15 | 18 | 3 | F | |||||
| Total expense | 557 | 590 | 33 | F | |||||
| Net operating income | $ | 13 | $ | 70 | $ | 57 | U | ||
Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $242 per exchange completed on the planning budget; whereas, the average actual office expense is $215 per exchange completed.
Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $4,800.
All of the company’s revenues come from fees collected when an exchange is completed.
Required:
1. Is the report prepared by the bookkeeper useful as a performance report?
2. Complete the performance report that would help the owner/manager assess the performance of the company in May.
In: Accounting
1) One of your employees has suggested that your company develop a new product. You decide to take a random sample of your customers and ask whether or not there is interest in the new product. The response is on a 1 to 5 scale with 1 indicating "definitely would not purchase"; 2, "probably would not purchase"; 3, "not sure"; 4, "probably would purchase"; and 5, "definitely would purchase." For an initial analysis, you will record the responses 1, 2, and 3 as "No" and 4 and 5 as "Yes." What sample size would you use if you wanted the 95% margin of error to be 0.2 or less? (Round your answer up to the next whole number.)
Participants
2)
An automobile manufacturer would like to know what proportion of its customers are dissatisfied with the service received from their local dealer. The customer relations department will survey a random sample of customers and compute a 95% confidence interval for the proportion that are dissatisfied. From past studies, it believes that this proportion will be about 0.22. Find the sample size needed if the margin of error of the confidence interval is to be no more than 0.035. (Round your answer up to the next whole number.)
Customers
In: Statistics and Probability
A stock is traded at $50 a share, and there will be no dividend on the stock in 6 months. The 6-month European calls and puts on the stock with same strike price of $45 are traded at $8 and $2, respectively. The six-month risk-free rate is 5% with continuous compounding. Is there an arbitrage opportunity? If yes, construct an arbitrage portfolio and clearly explain how arbitrage profits are created. If no, why?
In: Finance
13. Which of the following transactions causes a decrease in total liabilities?
A. Paying maintenance expenses for the current month.
B. Providing services to customers on account.
C. Paying dividends to stockholders.
D. Repay amounts previously borrowed from the bank.
14. Which of the following transactions causes a decrease in stockholders’ equity?
A. Paying advertising expense for the current month.
B. Repaying amount borrowed from the bank.
C. Providing services to customers for cash.
D. Providing services to customers on account.
15. Which of the following is possible for a particular business transaction?
A. Increase assets; decrease liabilities.
B. Decrease assets; increase stockholders’ equity.
C.Decrease assets; decrease liabilities.
D.Decrease liabilities; increase expenses.
20. A debit is used to decrease which of the following accounts?
A. Salaries Expense.
B. Accounts Payable.
C. Dividends.
D. Supplies.
28. Account balances in the general ledger are updated for transactions through the process of:
A. Balancing.
B. Analyzing.
C. Posting.
D. Journalizing.
30. Which of the following is true about a trial balance?
A .Only income statement accounts are shown.
B. Total debit amounts should always equal total credit amounts.
C. Only balance sheet accounts are shown.
D. The trial balance shows the change in all account balances over the accounting period.
35. if a company has an increase in total expenses of $10,000, which of the following is possible?
A. Total liabilities decrease by $10,000.
B.Total assets increase by $10,000.
C. Total stockholders' equity increases by $10,000.
D. Total assets decrease by $10,000.
36. If a company has an increase in total revenues of $10,000, which of the following is possible?
Total assets increase by $10,000.
Total liabilities increase by $10,000.
Total stockholders' equity decreases by $10,000.
A. I only
B. II only
C. III only
D. II or III
he payment for utilities of the current month would be recorded as
Multiple Choice
A. Debit Cash; Credit Utilities Payable.
B. Debit Utilities Expense; Credit Utilities Payable.
C. Debit Utilities Expense; Credit Cash.
D. Debit Utilities Payable; Credit Cash
43. Providing services to customers on account for $100 is recorded as
| a. | Accounts Receivable | 100 | |
| Service Revenue | 100 | ||
| b. | Cash | 100 | |
| Accounts Receivable | 100 | ||
| c. | Service Revenue | 100 | |
| Accounts Receivable | 100 | ||
| d. | Service Expense | 100 | |
| Accounts Payable | 100 |
Multiple Choice
A.Option a
B. Option b
C. Option c
D. Option d
In: Accounting