air national's capacity is 120 passengers per flight. it currently carries 74 passengers per flight. growth in passengers is expected to be 6 percent annually. new plans will have to be ordered when the company is carrying 95 percent of capacity. how long will it be before the firm must order new planes
Answers
It will take 5.56 years for the airline to reach 95% capacity, the airline will have to order new planes in 5.56 years.
Air National's capacity is 120 passengers per flight. Presently, it carries 74 passengers per flight.
Growth in passengers is anticipated to be 6% annually. New plans will have to be ordered when the company is carrying 95% of capacity.
To find out how long it will take before the company must order new planes, we'll need to know the maximum number of passengers the airline can carry before ordering new planes.
Since the airline would have to order new planes if it were carrying 95% of its capacity, we'll have to figure out what 95% of 120 is:
0.95 × 120 = 114.
Now we must figure out what percentage of the capacity is filled by 74 passengers. We will do it by finding the percentage of 74 out of 120:
74 ÷ 120 × 100% ≈ 61.67%
We'll now figure out how long it will take for the airline to reach 95% capacity from 61.67% by dividing the annual growth by the amount of the remaining capacity 95% − 61.67% = 33.33%.
We'll calculate the number of years it takes to grow 33.33% at a 6% yearly growth rate:
Years to grow 33.33% = 33.33%/6% ≈ 5.56 years
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Related Questions
identifying an example of the factor of production labour used in producing the Nano
Answers
Answer:
The Four Factors of Production
Land Labor Capital
The physical space and the natural resources in it (examples: water, timber, oil) The people able to transform resources into goods or services available for purchase A company's physical equipment and the money it uses to buy
The following transactions apply to Ozark Sales for Year 1:
1. The business was started when the company received $50,000 from the issue of common stock. 2, Purchased inventory of $380,000 on account.
3. Sold for $510,000 cash (NOT including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000.
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales.
5. Paid the sales tax to the state agency on $400,000 of the sales.
6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2.
7. Paid $6,200 for warranty repairs during the year.
8. Paid operating expenses of $78,000 for the year.
9. Paid $250,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Prepare the journal entries for the preceding transactions and post them to the appropriate T-accounts.
Answers
Answer:
Current liabilities: Accounts payable$130,000
Sales tax payable 8,800
Warranty Payable 4,000
Interest payable 667
Notes payable 50,000
Total current liabilities$193,467
Explanation:
why is accounting important
Answers
Accounting functions as the foundation of a company in numerous ways. Its responsibility is to keep track of a company's finances in all their various manifestations, including payroll and tax filings as well as credits, debits, and profitability.
The management, stability, and accountability of a company's financial operations are greatly influenced by accounting. It is a position that is likely to be in demand forever. Between 2020 and 2030, the U.S. Bureau of Labor Statistics (BLS) forecasts a 96,000 increase in employment, or 7% more jobs, for accountants and auditors.
However, why is accounting so crucial? Accounting firms are used by businesses for much more than regular tax support. Additionally, accountants offer services that can aid a business in developing strategies, making decisions, and adhering to legal and regulatory accounting obligations. They often need to be adept at numerical crunching as well as knowledgeable about accounting systems, corporate appraisals, cybersecurity, and mergers and acquisitions as their professions evolve.
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Today's theories about motivation emphasize the importance of factors within the individual particularly the variables of expectancy and value Students' motivations are strongly influenced by what they think is important (value) and what they believe they can accomplish (expectancy). Who quote is this?
Answers
What students value and what they believe can accomplish have a significant impact on their motivation expectancy. This quote comes from the philosophy of motivation.
What motivational ideas does the expectancy-value theory put forth?
The relationship between a student's expectation for success at a task or the achievement of a goal in relation to the value of task completion or goal attainment is described by the expectancy-value theory, which is a theory of motivation. A student's expectation for success on a particular activity is referred to as expectancy. Theoretical models of motivation nowadays place a strong emphasis on internal factors, particularly the variables of expectation and value.
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dan is an experienced accounting professional who values conservative and practical decisions. what would be the best way to communicate with him? a. ask him about his weekend and tell him about yours for 30 minutes before the meeting. b. collaborate with him on numerous ideas during the meeting. c. send him an email with minimal information asking him to make a decision prior to the meeting. d. give him factual evidence during a meeting so he can make a recommendation
Answers
Give him factual evidence during a meeting so he can make a recommendation would be the best way to communicate with him.
Option D is correct.
Professional accountants:A professional who carries out accounting tasks like account analysis, auditing, or analyzing financial statements is referred to as an accountant. Accounting firms or large corporations' internal account departments employ accountants. Additionally, they may establish their own distinct practices.
What does a professional accountant do?Business professionals who are accountants help with corporate strategy, give advice, and help businesses cut costs, boost their bottom line, and reduce risks. In business, professional accountants represent the interests of the company's owners—i.e., shareholders in a public company—as board directors.
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Production estimates for August are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3 lbs. Material B ($18 per lb.) 1/2 lb. The number of pounds of Materials A and B required for August production is a. 225,000 lbs. of A; 37,500 lbs. of B b. 234,000 lbs. of A; 39,000 lbs. of B c. 216,000 lbs. of A; 36,000 lbs. of B d. 216,000 lbs. of A; 72,000 lbs. of B
Answers
Answer: C) 216,000 lbs. of A; 36,000 lbs. of B
Explanation:
Given the following :
Estimated inventory (units), August 1, = 12,000 Desired inventory (units), August 31, = 9,000
Expected sales volume (units) = 75,000
Direct material requirement:
Material A ($5 per lb.) = 3 lbs
Material B ($18 per lb.) = 1/2 lbs
The number of pounds of material A and B required for August production :
Unit of product required for August production :
Expected sales volume + Ending inventory(August 31) - beginning inventory (August 1)
= 75000 + 9000 - 12000
84000 - 12000 = 72,000
Number of pounds required ;
Total Production unit × pounds per unit required
Material A:
72,000 × 3 = 216,000 pounds
Material B:
72,000 × (1/2) = 36,000 pounds
the privilege of moving funds from one fund to another within the same family without paying a commission is known as the
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The privilege of moving funds from one fund to another within the same family without paying a commission is known as the exchange privilege.
Also referred as conversion privilege
What is exchange privilege?
Exchange privilege is the right granted to shareholders of mutual funds to switch their investment from one fund to another within the same fund family.Investors who use the exchange privilege within a fund family can adjust their investment strategy in accordance with the state of the market and typically benefit from the numerous funds provided by the mutual fund firm.There might be some exchange costs or capital gains taxes, though the former is often quite little.This advantage enables investors to switch funds without paying additional sales fees as their investing objectives alter. Likewise known as conversion privilege.
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All of the following are considered generic business-level strategies EXCEPT: product diversification. cost leadership. focused differentiation. integrated cost leadership/differentiation.
Answers
A product diversification is not part of a typical generic business-level strategies.
What is generic business-level strategies?The strategy refers to a way of positioning a firm within an industry.
The focus placed on the generic strategies allows the executives to concentrate on the core elements of firms' business-level strategies.
The cost leadership. focused differentiation. integrated cost and leadership/differentiation are all generic business-level strategies.
Therefore, the Option A is correct.
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b) i) A firm has a total revenue function given by TR(Q)=40Q−Q2. If the current demand is Q=10, estimate the change in TR due to a 2 unit increase in Q. ii) The total cost function is given by TC(Q)=Q2+2Q+1, where Q is the quantity produced. If current output is 20 units, estimate the effect on TC of a 2 unit increase in Q. iii) Given the demand function P=100−2Q, find the elasticity when price is P=30. Is demand inelastic, unit elastic, or elastic at this price? Explain why. [10 marks]
Answers
The change in TR due to a 2 unit increase in Q is:
Change in TR = TR(Q+2) - TR(Q) = 336 - 300 = 36
The effect on TC of a 2 unit increase in Q is:
Effect on TC = TC(Q+2) - TC(Q) = 529 - 441 = 88
Calculate the absolute value of the elasticity:
|E| = (dQ/dP) * (P/Q) = (-2) * (30/35) = -1.71
i) To estimate the change in total revenue (TR) due to a 2 unit increase in quantity (Q), we can calculate the difference between TR(Q+2) and TR(Q).
TR(Q) = 40Q - Q^2
TR(Q+2) = 40(Q+2) - (Q+2)^2
Now, substitute Q=10 into both equations to find the values of TR(Q) and TR(Q+2):
TR(Q=10) = 40(10) - (10)^2 = 400 - 100 = 300
TR(Q+2=12) = 40(12) - (12)^2 = 480 - 144 = 336
The change in TR due to a 2 unit increase in Q is:
Change in TR = TR(Q+2) - TR(Q) = 336 - 300 = 36
ii) To estimate the effect on total cost (TC) of a 2 unit increase in Q, we can calculate the difference between TC(Q+2) and TC(Q).
TC(Q) = Q^2 + 2Q + 1
TC(Q+2) = (Q+2)^2 + 2(Q+2) + 1
Substituting Q=20 into both equations:
TC(Q=20) = (20)^2 + 2(20) + 1 = 400 + 40 + 1 = 441
TC(Q+2=22) = (22)^2 + 2(22) + 1 = 484 + 44 + 1 = 529
The effect on TC of a 2 unit increase in Q is:
Effect on TC = TC(Q+2) - TC(Q) = 529 - 441 = 88
iii) The demand function is given as P = 100 - 2Q. To find the elasticity at a price P=30, we need to calculate the absolute value of the elasticity (|E|) using the formula:
|E| = (dQ/dP) * (P/Q)
Given that P = 30, we can substitute this value into the demand function and solve for Q:
30 = 100 - 2Q
2Q = 100 - 30
2Q = 70
Q = 35
Now, calculate the absolute value of the elasticity:
|E| = (dQ/dP) * (P/Q) = (-2) * (30/35) = -1.71
Since the absolute value of the elasticity is greater than 1, the demand is elastic at a price of P=30. This means that a change in price will result in a relatively larger change in quantity demanded.
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The discount rate assigned to an individual project should be based on: Group of answer choices the firm's weighted average cost of capital. the actual sources of funding used for the project. the current risk level of the overall firm. the actual sources of funding used for the project. the estimated riskiness associated with the individual project.
Answers
Answer:
none of the choices are correct
Explanation:
When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project
There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner
Therefore none of the choices are correct
7. Choose if the product is a Good, a Service, or Both.
buying a bicycle
getting a back massage
getting the plumbing fixed in your house
use of a smartphone app
buying a new AC unit for your house
buying a hamburger
getting your taxes completed by a tax firm
Answers
Answer:
1 buying a bicycle it's a good
2 getting a back message it's a service
3 getting the plumbing fixed in your house it's a service
4 use of a smartphone app it's a service
5 buying a new Ac unit for your house it's a service
6 buying a hamburger it's a good
7 getting your taxes completed by a tax firm it's both
what is the impact of atm on banking sector?
Answers
Answer:
Explanation:
ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required
ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.
Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.
With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.
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due to an international financial crisis, canada experiences a significant inflow of funds from other countries. explain the effect that this inflow of funds will have on the following. (letter each of your answers and explain the why it would have this effect.) (a) the international value of the canadian dollar (b) canadian net exports (c) the real interest rate in canada (d) the level of investment in canada
Answers
(a) The inflow of funds from other countries will raise the international value of the Canadian dollar.The international value of the Canadian dollar will increase because of the inflow of funds from other countries.
The Canadian dollar will increase in value, meaning that a greater amount of another currency will be required to obtain the same quantity of Canadian dollars.(b) The Canadian net exports will decrease due to the inflow of funds from other countries.The inflow of funds from other countries would result in a rise in the Canadian dollar's value, making Canadian goods and services more costly for foreign buyers. This results in a decrease in net exports.(c) The real interest rate in Canada would decrease due to the inflow of funds from other countries.
As the Canadian dollar rises in value, it becomes more expensive for foreigners to invest in Canadian financial assets. As a result, the inflow of foreign funds would reduce the demand for Canadian dollars, resulting in lower interest rates in Canada.(d) The level of investment in Canada would decrease due to the inflow of funds from other countries.A decrease in the demand for Canadian dollars would reduce the level of investment in Canada. Lower investment, on the other hand, would translate to a drop in capital accumulation. This will contribute to a decline in the level of GDP in the long run.
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what is the importance of inference, psychological safety, and team effectiveness in the design thinking process?
Answers
Design thinking encourages collaboration, flexibility, curiosity, and positivity, creating happy teams and positively influencing the outcome. Through this process, team members feel valued and clients know that their feedback is taken into consideration.
Design is an art shape, a method of human expression that follows a gadget of tremendously evolved processes so that you can imbue objects, performances, and experiences with significance. like any artwork bureaucracy, the layout has the capacity to clear up issues, but there may be no guarantee that it's going to.
An critical part of the definition of the word layout is the reason: to intend for a particular motive, to assign in notion or purpose; a reason or plan of action. design without motive is design without that means or purpose. We accept as true with without a cause there's no design. An instance of design is a plaid sample on a pair of pants.
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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?
Answers
Answer:
$156
Explanation:
he old price per basket is $0.50 per basket
the new supplier has a price of $0.40 per basket
Savings per basket is $0.10 ($.50- $0.40)
The average sales per month are 130 baskets.
The average savings per months will be
=$0.10 x 130
=$13
yearly savings will be
=$13 x 12 months
=$156
Which will help you when you file a claim for home insurance?
A home loan
B.
home budget
c.
home inventory
Answers
Answer:
home inventory
Explanation:
a fixed cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment is a(n)
Answers
A fixed cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment is a common fixed cost.
A common fixed cost is a cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment.
These are costs which remain constant regardless of the level of output or sales volume. Examples of common fixed costs include rent, depreciation, insurance, executive salaries, etc.
Common fixed costs are not typically allocated to individual product lines because the costs do not change significantly when the production or sale of one product line increases or decreases. Therefore, the cost remains the same whether the product line is producing or not. Common fixed costs are typically deducted from the total sales figure to calculate the gross profit figure.
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Along with experience, a(n) ______ approach is particularly important when selecting the right promotional tools because a large number of possible combinations can achieve the same objective. Multiple choice question.
Answers
In marketing, analytical approach is often used when marketing a product.
An analytical approach and experience are very vital due to the fact that a huge number of combinations can be used in the same objective.
An analytical marketing plan often start by having an insight into a business' customers.Analytical strategists often try to know what they want to know from customers, manage and organize the data, and create customer profiles to gain insight.
Companies can then know the consumers' behavior from their data.
Product analytics is defined as the way one use to understand how customers engage with an individual's digital product or service.
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Which of the following skills are required to be an effective project manager? (choose all that apply)
A. communication
B. teamwork
C.friendship
D. time management
E. bossy-leadership style
F. budgeting
Answers
Answer:
A. communication, B. teamwork, D. time management, F. budgeting
Explanation:
got it right on edge
Which figure (amount) should be larger?
A. Expenses
B. income
C. Extras
D. Needs
Answers
Income
WHY:
The expenses and extras and needs should all add up to the income and the income should be over these expenses
MARK ME BRAINLIEST PLEASE
BRUH THIS THING LOGGED ME OUT WHAT IS GOING ON
Answers
Answer:
?????????????
Explanation:
???????????
Parents, friends, and family members are resources who can
a answer questions by text while you are shadowing
b help find connections for job shadowing experiences
c provide scholarships to pay for college tuition
d decide what certifications are needed for specific jobs
Answers
Answer:
B, Help find connections for job shadowing experiences.
Explanation:
As it states directly in the text, "if they know anyone working in the career field you want to shadow." Therefore, you can infer that the answer is B.
Answer: The answer is B. Help find connection for job shadowing experiences.
Explanation:
The family and friends cannot decide what the boss wants for the job, texting during a JS experience is immature, and although they can't provide scholarships. That is just called paying for college. I hope I helped!
A US based company is attempting to merge with a French National conglomerate. With IFRS and GAAP being so different, what would be some of the challenges the two sides may face with the merger from an accounting standpoint?
Answers
The merger between a US-based company and a French National conglomerate can pose several challenges from an accounting standpoint due to the differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Some of the challenges they may face include:
Accounting Principles: IFRS and GAAP have different underlying principles and concepts. IFRS is principles-based, emphasizing substance over form, while GAAP is rules-based, providing specific guidelines for various transactions. The differences in accounting principles can lead to variations in the recognition, measurement, and presentation of financial information.
Financial Statement Presentation: IFRS and GAAP have different requirements for financial statement presentation. The formats and classifications of items on the balance sheet, income statement, and cash flow statement may vary between the two sets of standards. This can make the comparison and consolidation of financial statements challenging.
Revenue Recognition: IFRS and GAAP have differing guidance on revenue recognition, particularly in areas such as the timing of revenue recognition, multiple-element arrangements, and percentage-of-completion method for long-term contracts. Aligning the revenue recognition policies of the merging entities can be a complex task.
Valuation of Assets and Liabilities: IFRS and GAAP may have different rules for the valuation of assets and liabilities, such as inventory, property, plant, and equipment, intangible assets, and financial instruments. Differences in valuation methodologies can impact the reported values of assets and liabilities, which can have implications for financial ratios, financial performance, and tax implications.
Business Combinations and Goodwill: IFRS and GAAP have different requirements for accounting for business combinations and the subsequent treatment of goodwill. For example, IFRS allows for the option of measuring goodwill at cost or using the impairment model, while GAAP follows a more strict impairment-only model. This can result in differences in the recognition and measurement of goodwill and the related impact on financial statements.
Disclosures: IFRS and GAAP have varying disclosure requirements, with differences in the level of detail and specific disclosures mandated for certain transactions and events. Harmonizing the disclosure requirements can be a complex task to ensure compliance with both sets of standards.
These are just a few examples of the challenges that may arise during the merger process from an accounting standpoint. It is crucial for the merging entities to have a thorough understanding of the differences between IFRS and GAAP and work closely with accounting professionals and advisors to address these challenges effectively and ensure accurate financial reporting and compliance with relevant regulations.
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g the statement of cash flows is needed to show the total change in cash and the reasons for the change true false
Answers
It is true that the statement of cash flows shows how the cash balance changed during a specific time period. Cash flows from operating, investing, and financial operations are displayed.
What Are the Steps in Cash Flow?
Cash flow is the difference between the net amount of money and money equivalents that enters and leaves a business. Inflows and outflows are represented, respectively, by money received and expended.
An illustration of cash flow
Cash flow from operations includes expenditures made in the regular course of business. These cash outflows include things like payroll, the price of goods sold, rent, and energy costs. Cash outflows may vary considerably when corporate operations are highly seasonal.
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I got this question on my quiz a few weeks ago and was wondering if anyone could explain the best/correct answer.
I'm currently leaning towards the last option, but I'm not sure.
Answers
Answer:
Easy it's B, this is because the rate at which we earn interest with only 1000$ does not keep up with the maintenance fee.
In B u get $1010 because of the interest after the first year,
In D u get $960 because if u get an annual interest of 2% from $1000 u get a total of $1020 but deduction from maintenance fee is $60 per year, Thus $1020-$60 = $960. Same explaination for the others as well.
Why would a firm voluntarily disclose details of a provision for
warranty according to Positive Accounting theory?
Answers
According to the positive accounting theory, firms are motivated by maximizing their wealth or utility. Therefore, a company may voluntarily disclose details of a provision for a warranty to show their commitment to transparency and quality to potential investors.
Firms that adopt a positive accounting theory viewpoint assume that corporate behavior is determined by individual self-interest and motivations to maximize utility. The theory emphasizes the role of incentives in explaining corporate actions and the importance of monitoring these actions to ensure the alignment of managers' interests with those of the firm's shareholders. One way in which firms can demonstrate their commitment to transparency and quality is through voluntary disclosure of details about a provision for warranty.
The disclosure can enhance the firm's reputation and credibility, which can help attract new investors and retain existing ones. It can also help to reduce information asymmetry, which is a situation where one party has more information than the other. By providing information about warranty provisions, firms can help investors better understand their financial position and assess the quality of their products and services. Additionally, investors can use the information to compare different firms in the same industry and make more informed investment decisions.
In conclusion, firms that adopt a positive accounting theory viewpoint can benefit from voluntary disclosure of details about a provision for warranty. The disclosure can enhance the firm's reputation and credibility, reduce information asymmetry, and help investors better understand the financial position of the firm. Investors can also use the information to compare different firms in the same industry and make more informed investment decisions.
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The Federal Reserve decides to sell $500 million in government debt to households paying with checkable deposits. The current reserve requirement is 20%. Instructions: Enter your answer as a whole number. a. The Fed decision will lead to reserves in the banking system and money in circulation. b. The money supply will by a maximum of $ milition.
Answers
The banks can lend out the remaining 80% of the checkable deposits to borrowers, which increases the money supply and for b) the money supply will increase by a maximum of $2.5 billion.
a. The Fed decision will lead to an increase in reserves in the banking system and an increase in money in circulation.
When the Federal Reserve decides to sell $500 million in government debt to households paying with checkable deposits, it means that the Federal Reserve is selling Treasury securities to individuals. This transaction increases the reserves held by the banking system.
To understand how this process works, let's consider the following example:
1. The Federal Reserve sells $500 million in government debt to households.
2. The households pay for this debt using their checkable deposits, which are essentially their bank account balances.
3. As the households' bank accounts are debited for the purchase of the government debt, the reserves held by the banks decrease.
4. However, since the reserve requirement is 20%, the banks need to hold only 20% of the checkable deposits as reserves.
5. Therefore, the banks can lend out the remaining 80% of the checkable deposits to borrowers, which increases the money supply.
b. The money supply will increase by a maximum of $2.5 billion.
To determine the maximum increase in the money supply, we can use the money multiplier formula:
Money Multiplier = 1 / Reserve Requirement
In this case, the reserve requirement is 20%, so the money multiplier is:
Money Multiplier = 1 / 0.20 = 5
To calculate the maximum increase in the money supply, we can multiply the initial injection of reserves by the money multiplier:
Maximum Increase in Money Supply = $500 million x Money Multiplier
Maximum Increase in Money Supply = $500 million x 5
Maximum Increase in Money Supply = $2.5 billion
Therefore, the money supply will increase by a maximum of $2.5 billion.
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This activity is important because it covers important terms for effective money management. The goal of this exercise is to identify the best ways to manage your personal finances. Complete each statement with the correct term. Note not all terms will be used.
Answers
Remainder Part of the Question:
Build Your Financial Base Terms:
The ______ is one of the best places to put your money.
A _______ is one of the worst places to keep long-term investments.
You can use a _______ to keep track of purchases.
Your _______ is likely to be the largest of the most important investments you make.
It is wise to plan your financial future with _______.
Available Options are:
Credit Card, Bank Account, Home, Uncertainity, Excitement, car, insurance, stock market, payday loan.
Answers:
A. Stock market
B. Bank Account
C. Credit Card
D. Home
E. Insurance
Explanation:
A. The Stock Market is one of the best places to put your money.
Stock markets are the source of raising funds for investments by the companies. The stock market helps the investor to choose the investment with appropriate returns and risks. Furthermore the investor can also diversify its return by managing the portfolio of investments.
B. A Bank Account is one of the worst places to keep long term investment
The lowest returns are on saving accounts hence it is the worst place for long term investments.
C. You can use Credit Card to keep a track of your purchases.
Credit cards can be used for tracking all of purchases because monthly statement mailed to you includes all the spendings during the year.
D. Your Home is likely to be the largest of the most important investments you make
Buying home is considered as one of the largest investments as it takes substantial savings of the person to buy an house. A roughly estimate would be the savings of 3-4 years for a small house for a couple.
E. It is wise to plan your financial future with Insurance.
Because Insurance helps you to lower your financial risks. The risk is associated with life, home, car, and physical assets and thus the investor must use insurance facility.
.The Banking Crisis of 2008
The banking crisis of 2008 is quite interesting to analyze. The factors that led to this near banking collapse are intriguing to say the least. In this exercise you will be evaluating the factors that led up to the crisis and determining which ones could have created this scenario.
There is no simple answer to what led to the banking crisis, as there were many factors that contributed over a long period of time. Understanding the factors that led to the crisis is very important, as such an understanding will help regulators prevent similar situations in the future.
Fore each item listed, select how much it contributed to the banking crisis.
1. The repeal of some provisions of the Glass-Steagall Act of 1933
a) Major contributor
b) Not a major contributor
2. Savvy individual investors
a) Major contributor
b) Not a major contributo
3. The Community Reinvestment Act (CRA)
a) Major contributor
b) Not a major contributor
4. Borrowers’ lack of financial knowledge
a) Major contributor
b) Not a major contributor
5. The Troubled Asset Relief Program (TARP)
a) Major contributor
b) Not a major contributor
6. Mortgage-backed securities (MBSs)
a) Major contributor
b) Not a major contributor
Answers
The banking crisis of 2008 was the result of various factors, and it is important to evaluate their contributions to understand the scenario.
The repeal of certain provisions of the Glass-Steagall Act of 1933, which separated commercial and investment banking, is considered a major contributor to the crisis. The removal of these regulations allowed banks to engage in riskier activities, contributing to the collapse.
Savvy individual investors, the Community Reinvestment Act (CRA), and borrowers' lack of financial knowledge are not considered major contributors to the crisis. However, the Troubled Asset Relief Program (TARP), implemented to stabilize financial institutions, is regarded as a major contributor.
Additionally, mortgage-backed securities (MBSs), which were complex financial instruments tied to housing market risks, played a significant role in the crisis. Understanding these factors helps regulators prevent similar situations in the future.
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Which of below describes demand elasticity under monopolistic competition a. Very elastic b. Unit elasticity c. Perfectly inelastic d. Perfectly elastic e. Very inelastic Clear my choice
Answers
The correct choice to describe demand elasticity under monopolistic competition is: a. Very elastic
In monopolistic competition, demand elasticity is high, indicating a high level of responsiveness in quantity demanded to changes in price. This means that even a small change in price can result in a relatively large change in the quantity of goods or services demanded by consumers. In monopolistic competition, firms differentiate their products through branding, marketing, or product features, creating a certain degree of product differentiation.
As a result, consumers have a range of substitute options available to them. If one firm raises its price, consumers can easily switch to a competitor offering a similar product, leading to a significant decrease in demand for the original firm's product.
Therefore, demand is considered very elastic in monopolistic competition.
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