b. In a different economy, vault cash is $1000000, deposits by depository institutions at the central bank are $4 000 000, the monetary base is $10000000, and bank deposits are $20000000. Find bank reserves, the money supply, and the money multiplier.
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- Let us assume that a bank acquired reserves and deposits equal to ₱1,000 with a required reserve of 10% as imposed by the central bank. Solve for the amount of money that the bank can lend, given the reserves that are legally required to support the ₱ 1,000 deposit and the money multiplier. Which one of the following best defines cash concentration? A. Combining all of a firm's receipts into one bank deposit B. Combining a week's worth of cash receipts into one bank deposit C. Combining cash from multiple banks into a firm's main bank accounts D. Using multiple lockboxes for collecting cash payments E. Combining a firm's bills so that disbursement checks are mailed only monthlySuppose that a bank holds cash in its vault of $1.4 million, short-term government securities of $12.4 million, privately issued money market instruments of $5.2 million, deposits at the Federal Reserve banks of $20.1 million, cash items in the process of collection of $0.6 million, and deposits placed with other banks of $16.4 million. How much in primary reserves does this bank hold? In secondary reserves?
- Suppose that, as a result of increased use of electronic payments, banks no longer need to hold as much vault cash. Banks decide to reduce their vault cash holdings by $250million. a) Show the effects this would have on the balance sheets of commercial banks and the central bank. b) If, at the same time, depositors decide to reduce their cash holdings by $50million by depositing that amount with their banks, show the combined effect of these decisions on the balance sheets of commercial banks.This refers to a bank that has agreement with the clearinghouse to exchange checks. A. Commercial Bank B. Correspondent Bank C. Universal Bank D. Concentration Banking 2. Firms hold cash for the purpose of taking advantage of investment opportunities. A. Precautionary Motive B. Transaction Balance C. Compensating Balance D. Speculative Motive 3. This refers to the process of monitoring and analyzing the amount of cash needed and how it can be generated. A. Cash Monitoring B. Cash Balances C. Cash Management D. Cash ForecastingThe table gives information from a bank's balance sheet. Calculate the bank's loans, securities, and reserves. The bank's loans are $ million. The bank's securities are $ million. The bank's reserves are $ million. Item (millions of dollars) Checkable deposits 500 Savings deposits 600 Small time deposits 500 Loans to businesses 1,050 Government securities 500 Currency 20 Reserves at the Fed 30
- Could you please explain to me how the cash balances are calculated???? Pro Forma Cash Flow Cash Received Cash from Operations Cash Sales $24,198 $100,099 $122,460 Cash from Receivables $46,108 $217,218 $342,905 Subtotal Cash from Operations $70,306 $317,317 $465,366 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $40,000 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $70,306 $357,317 $465,366 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $167,000 $225,200 $229,200 Bill Payments $75,294 $124,114 $152,785 Subtotal Spent on Operations $242,294 $349,314 $381,985 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0…1. the cash balance shown in your general ledger is P2,000,000, while the cash balance shown in your bank statement is P800,000. You will likely feel relieved if the reconciling items include... A. a P1,200,000 deposit in transit B. a P1,200,000 outstanding check C. a P1,200,000 debit memo D. a P1,200,000 book error 2. A check correctly written and paid by the bank for P517 is incorrectly recorded on the company's book for P571, what would be the appropriate treatment on the bank reconciliation? A. add P54 to the book balance B. add P54 to the bank balance C.subtract P54 to the book balance D. subtract P54 to the bank balanceFrom page 4-4 of the VLN, what is the goal of a bank reconciliation? Group of answer choices A. To make sure the company cash account is increasing. B. To make sure the company is profitable. C. To make sure the bank records and our company records are the same. D. To make sure the bank is competitive with other banks.
- The Valorant Company has the following items in its general ledger: Petty cash fund- $5,000; Checking account, Bank of Korea- $290,000; Cash fund legally restricted for short-term borrowings, Bank of Korea- $100,000; Checking account, BPI Bank- $(170,000); Checking account, Metrobank- $49,500. The amount of cash that should be reported in Valorant's balance sheet as a current asset is:For the following two situations, select the statement that would be most helpful in managing cash in each situation which is consistent with effective cash management techniques. Situation 1: Sales of our products generated extra cash that is not needed until later in the year. Situation 2: A few of our suppliers are unhappy because some checks we issued have been returned marked NSF. We feel that we have enough money in the bank account. StatementSituation 1Situation 2Increase the speed of collection on receivables by offering a sales discount 1/10 or 2/10, net 30. Offer customers shorter credit terms, e.g., 30 instead of 45 days. Sell receivables to a factor. Keep inventory quantities down to a level that is adequate for meeting current orders. Delay payment of liabilities by negotiating longer credit terms from suppliers, e.g., 40 instead of 30 days. Plan the timing of major expenditures. Invest in idle cash. Balance the Cash account daily after recording all cash…Which of the following item, have been recorded on the company's books but not yet by the bank: ered f1.00 Select one: stion a. Cash per bank b. Outstanding checks c. Cash per book d. Deposits in transit