Answer: The correct answer is choice C.
Explanation: The primary purpose of the legal reserve requirement is to provide a means by which monetary authorities can influence the lending ability of commercial banks. These policies are the way in which the Federal Reserve can control the money supply.
Answer:
c. A credit to Cash of $272.75.
Explanation:
These transactions can be explained with the help of T- Account .
<h2><u> Cash </u></h2><h3><u>Debit Credit </u></h3>
Bal $ 500
Freight $61
Shipping
Charges $ 85
Supplies $ 50
Donation $ 69
Suspense 7.75
<u>Fund $ 227.25 </u>
Fund $ 227.25
<u> Reimbursement </u><u> $272.75</u>
<u> $ 500 </u>
<u />
<em><u>As there is shortage of $ 272.25 in the amount of $ 500 the petty cash will be reimbursed with this amount.</u></em>
<em><u>An amount of $ 7.75 is short which is dealt in suspense account and reimbursed with the amount falling short.</u></em>
Character traits can help drive your success. When you have passion, perseverance, and integrity you have a better chance at being successful with something you are truly passionate about. It's best to stay focused and work as hard as you can to accomplish your goals. If you are able to manage your time and stay focused you will likely succeed.
The answer to this question is bonds. Bonds are an
investment type where in investors’ gains a fixed-income over their
investments. Bonds are less risky because the return of investment is in a
fixed rate and this is less vulnerable to price swings in the stock market.
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
