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money market mutual fund question

Monica saves $10,000 from her money market mutual fund and puts the fund into her savings account...See attached file for full problem description.

Cash Management

Simpson's Scuba Inc. is a manufacturer and retailer of scuba equipment. Currently, the firm has no coordinated cash-management system, and the firm's management has decided to focus on ways to improve the cash collection process. A proposal from the First California Bank aimed at speeding up cash collections is being examined by

Sale of receivables and sale merchandise entries

Presented below are two independent situations. (a) On March 3, Lisa Ceja Appliances sells $700,000 of its receivables to Horatio Factors Inc. Horatio Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Lisa Ceja Appliances' books to record the sale of the receivables. (b) On Ma


A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the interest rate available on other deposits is 6 percent?


Hi I would like some assistance with the attached excel file. Thanks.


2. What principles of internal control apply to most business enterprises? 5. How do documentation procedures contribute to good internal control? 8. The management of Borke Company asks you, as the company accountant, to explain (a) the concept of reasonable assurance in internal control and (b) the importance of the

Economics help

Page 370 problem 3 Howard Bowen is a large cotton farmer. The land and machinery he owns has a current market value of $4,000,000. Bowen owes his local bank $3,000,000. Last year Bowen sold $5,000,000 worth of cotton. His variable operating costs were $4,500,000; accounting depreciation was $40,000 although the actual decline

Interest rate problem

A) Given the following data, calculate the real interest rate for years 2, 3, and 4. (Assume that each CPI number tells us the piece level at the end of each year.) Year CPI Nominal Interest Rate Real Interest Rate 1 100 --------- ----

Interest rates and savings

Suppose that at an initial cost of $1000, a homeowner can insulate his house and save $50 each year in heating bills. What is the highest interest rate at which the homeowner should insulate? What equation would you use to find this? Is the interest rate per year or what?

Income Levels and Marginal Propensity

Please answer in detail the following questions. Further, place my questions before each of your specific responses so I can follow along with clarity. 1. How might income levels affect "marginal propensities to consume?" 2. Why don't we count credit card credit limits as money?

Money creation

Show how each of the following would initially affect a bank's assets and liabilities. a. Someone makes a $10,000 deposit. b. A bank makes a loan of $1,000 by establishing a checking account for $1,000. c. The loan described in part (b) is spent. d. A bank must write off a loan because the borrower defaults.

Macro Economics

Given that money supply (and money base) in an economy increases as companies borrow from banks, does a decrease (or increase) in oil prices not affect the growth of an economy. - if the price of oil goes down, won't companies borrow less to expand , thereby allowing less new money to be created? Alternatively, if oil prices

Money multiplier, credit creation, required reserve ratio

Please help with the following problem. Use a simple Balance Sheet for a typical bank, which has $5,000 of deposits, a required reserve ratio of 10 percent, and excess reserves of $0. a. What is the value of money multiplier? b. If the bank lends it's maximum amount of excess reserve, what would be the total amount cred

Money and Bank lending

As I understand it , in order for our economy to continue to grow and remain 'healthy' banks must create more and more loans every year - as the main way new money enters the economy is via the banking system (I understand that the money base is then increased by Central bank so as to target the Fed funds rate etc.) This be

Evaluation of business opportunity using Net Asset Value calculations

I'm a graduate student in a media management program. The attached case study is giving me some fits. We will be doing a similar case soon, so if I can see this one and understand the answers - - I hopefuly can do the next one myself. We have no TA's, and our professor, while a great guy, is pretty busy to deal with a crowded

Quality Management Philosophies

4(a) What are the main differences between re-engineering and continuous Improvement as Quality Management Philosophies? (b) Why should the manager of a bank home office be evaluated different from a manager of a branch office? (c) What are the main differences and similarities between the services customers receive from A

Quest Bank

6. Quest Bank is considering opening a drive-through window for customer service. Management estimates that customers will arrive at the rate of 10 per hour. The teller who will staff the window can service at the rate of one every four minutes. Assume Poisson arrivals and exponential service.... "PROBLEM ATTACHED IN WORD FOR

Money creation and control

A bank has: 25 in reserves at the Fed 15 in AtM cash 60 in Gov't securities 100 in Loans 90 in demand deposits 110 in savings deposits required reserve ratio is 5% so if there is no currency drain and if all the funds loaned remained deposited in the First Student Bank, what is the quanity of loans and total de


What is currency in circulation mean? And why is it considered to be apart of the monetary base.


Do reserves include all assets? REserves at Fed Cash in ATMs Government Securities Loans Total deposits...liabilities?

Indonesian Case Study Question 3

In 2002, would you have given your unqualified support to a proposal to expand production of SPV in Indonesia? If not, why not? Moreover, are there circumstances under which you would have supported such a proposal?

Finance Questions

1. Suppose your expected incomes in years 1 and 2 are $60,000 and $70,000 respectively. You have 40,000 in cash in year 0. Market interest rates for one-year loans are 8% in year 0 and 14% in year 1. a) If your minimum consumption level today is 20,000 and it is growing at 10% for the next two years, what will be your con

Currency trivia

Visit the website of the Federal Reserve Bank of Atlanta,, to answer the following questions: What are the denominations of Federal Reserve Notes now being printed? What was the largest-donomination Federal Reserve Note ever printed and circulated, and when was it last print

General Question

How does the FOMC accomplish the open market short term interest rate?


The multiple expansion of bank deposits usually requires how many banks for complete money creation? A) 1 B) 3 C) 5 D) 10 E) there is no limit to the number of banks that can be involved in this process.

Balance of Accounts

If banks are required to hold 20% of all deposits as reserve, and an additional 5% is retained as a hedge against falling short of reserves, then a $300,000 increase in deposits will result in: A) a $1.5 million increase in deposits. B) a $1.2 million increase in deposits. C) a $900,000 increase in deposits. D) a $