?If the reserve requirement for demand deposits is 10 percent, what is the maximum change in the money supply that the banking system can create if a. the Federal Reserve puts $1,000,000 of new reserves in the banking system b. $1,000,000 in cash is deposited in checking accounts c. IBM borrows $1,000,000 from an insurance company?
What will be an ideal response?
a. new excess reserves: $1,000,000 maximum possible expansion in the money supply: $1,000,000/.1 = $10,000,000?b. new excess reserves: $1,000,000 ? 100,000 = $900,000 maximum possible expansion in the money supply: $900,000/.1 = $9,000,000?c. new excess reserves: $0 maximum possible expansion in the money supply: $0/.1 = $0(Borrowing from the non?bank public does not affect the banking system's ability to create new money.)
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Describe the steps an organization can take to make the workplace more secure.
What will be an ideal response?
Which of the following is not true regarding the presentation of cash on the balance sheet?
a. A company may invest its highly liquid cash in order to earn interest; these investments are called cash equivalents. b. Most companies present only a single cash amount on the balance sheet by combining all their bank and cash fund accounts. c. Cash is the most liquid asset, and it is therefore listed first under the property, plant, and equipment section of the balance sheet. d. Cash is the most liquid asset, and it is therefore listed first under the current assets section of the balance sheet.
Bonds payable would be listed at their carrying value on the balance sheet
Indicate whether the statement is true or false
In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the
A. person in the mirror test. B. publicity test. C. admired observer test. D. moral mentor test. E. transparency test.