Holding everything else constant, if the federal funds rate falls, then the demand for
A) excess reserves falls because they have a lower return.
B) excess reserves rises because they have a lower cost.
C) required reserves rises because the cost of borrowing from the Fed is relatively higher.
D) required reserves rises because the cost of borrowing from the Fed is relatively lower.
E) reserves will not change because the Fed sets the level of required reserves.
B
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Let us consider that customers arrive at the rate of seven per hour and wait for an average 0.25 hour in a shop. Using Little’s law, determine the average number of customers in the queuing system.
a. 2 b. 2.4 c. 1.25 d. 1.75
Organizations can make full use of their capacity to reduce their costs during ______.
a. the introduction stage of the product life cycle b. the growth stage of the product life cycle c. the maturity stage of the product life cycle d. the decline stage of the product life cycle
There are significant generational differences in preferences for using and realizing the potential benefits of social-media tools.
Answer the following statement true (T) or false (F)
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
A. Debit Accounts Payable $1,600; credit Cash $1,600. B. Debit Accounts Payable $1,800; credit Cash $1,800. C. Debit Cash $1,600; credit Accounts Payable $1,600. D. Debit Merchandise Inventory $1,600; credit Cash $1,600. E. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568.