S Problem 7-1 (Algo) Cost-benefit analysis of cash management [LO7-2] City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers, so the firm's checks will take longer to clear the bank. Collection time has been reduced by three days and disbursement time increased by two days because of these policies. Excess funds are being invested in short-term instruments yielding 4 percent per annum. a. If City Farm has $4.45 million per day in collections and $3.80 million per day in disbursements, how many dollars has the cash management system freed up? Note: Enter your answer in dollars not in millions (e.g., $1,234,567). Freed-up funds b. How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash? Note: Enter your answer in dollars not in millions (e.g., $1,234,567). Interest on freed-up cash

S Problem 7-1 (Algo) Cost-benefit analysis of cash management [LO7-2] City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers, so the firm's checks will take longer to clear the bank. Collection time has been reduced by three days and disbursement time increased by two days because of these policies. Excess funds are being invested in short-term instruments yielding 4 percent per annum. a. If City Farm has $4.45 million per day in collections and $3.80 million per day in disbursements, how many dollars has the cash management system freed up? Note: Enter your answer in dollars not in millions (e.g., $1,234,567). Freed-up funds b. How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash? Note: Enter your answer in dollars not in millions (e.g., $1,234,567). Interest on freed-up cash

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q5. Consider an economy where the required reserve ratio is 40%. Suppose Mark sells $2,000 worth of government securities to the FED and deposits the proceeds ($2,000) in Bank 1. Note that this new deposit initially increases the quantity of money by $2,000.Assume that all accounts were previously equal to 0 (or that we are only looking at changes. What will be the value of the total deposits in Bank 1.
A2-2. The Chinese central bank (PBOC) recently lowered its required reserve ratio for banks in China. If we assume that the initial balance sheet of the banking system is as shown below, and that everyone holds all their money in the banking system, and that the reserve ratio is decreased from 10% to 5%, both loans and the money supply will increase by 1000.
“70% of transactions in India are performed through cash as most of the daily purchases are done through cash only without any payment gateway and technology with majority of the population is still underbanked. So, this is the need of some system that facilitates the electronic payment system that caters to the population which remains excluded from the banking sector. The electronic payment system also is the need of the hour today as it helps in removing the black money from the money market as every transaction is recorded automatically which not the case with cash transaction. To facilitate the above, the RBI recently issued the licenses of the Payment Banks to the private sector. They are different from the traditional banks as they have only the right of making transactions like payments through various gateways but not accepting deposits and dispersing loans as the traditional banks do. So, this helps in growing the digital space in the financial market.” Q.“Digital…
Unit 8-1
H6. 31 P XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Choc entry to create the account from the following. O Petty Cash is debited for $100. O Cash is debited for $100. O Petty Cash is credited for $100. O Miscellaneous Expense is debited for $100.
sh13 please help me thakyou
Sd
9. is an example of the first line defense against customer demand on deposit trading account asset treasury bills since hey are easy to converted to cash federal fund sold O un-collected checks loons 674 other
11.3 Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan. a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit? b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? Please provide steps so that I can better understand how the answer is found.
What is the money supply of the economy-that which will circulate in the economy
“… When the assets of the Central Bank are analyzed, one should see that there is no significant increase. This is a net indicator of the Central Bank’s tight monetary policy. In an economy where Central Bank’s balance-sheet expands almost 2%, saying that money supply increases almost 16% is just bending the truth …”is this idea true? Why or why not? Explain your answer in detail.

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