Shen is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwichesfor $4.99 and whole subs for $7.99. Shen decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keepthe change.Identify what role money plays in each of the following parts of the story.Hint: Select each role only once.Role of MoneyShen can easily determine that the whole sandwich, while twice as long as the half, ispriced at less than twice as much.Shen accumulates money in his savings account for future purchases.Shen buys his lunch with a $10 bill.Medium ofExchangeOUnit ofAccountStore ofValueOOo 5. Working through a change in the reserve requirementAssume that the following table portrays the balance sheet of First Western bank.AssetsVault CashDeposits at FedLoansTotal$150,000$250,000$500,000$900,000Liabilities and Net WorthFirst Western's bank reserves are equal to $checking deposits, First Western' would maintainreserves over and above the desired amount.DepositsThe increase in the money supply will beTotalsmaller$900,000$900,000If First Western uses the reserves above the desired level to extend additional loans, the money supply would increase by$If First Western bank wanted to maintain 0.20 of its assets as reserves againstas reserves. Therefore, it would have $as additionalIf First Western wanted to maintain 0.10 larger s as reserves against checking deposits, First Western' would maintainreserves, additional reserves would be $and the increase in the money supply would be $if First Western chooses a desired reserve ratio of 0.10.as

"Since you has asked two independent questions, the first question was answered for you. If you want…

Shen is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Shen decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change.

Shen is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Shen decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

4 Ken is a customer at Orange Grove Bank and frequently banks online. One day he receives an email with his banks logo on the top. The email states: You have been preapproved for a premium credit card, with an introductory rate of zero percent APR. The email then asks Ken to click on a link provided in the email to activate his card. Ken clicks on the link and is directed to a website where he is asked to provide personal financial information and his Social Security number. What law, or rule, applies to this situation?
Your cousin works in the accounting department of his Company. You are at a family get together and he says he hates this part of his job where he has to reconcile the bank statements every month. He says "I don't understand why this is necessary. Almost all our customers pay online and the bank tracks all the ins and outs of the cash in the account. I think these bank reconciliations are a waste of time!" You think that you don't really reconcile your checking account every 1. Name at least three benefits achieved by performing a bank reconciliation that you could share with your cousin.
Rosita Flores owns Rosita’s Mexican Restaurant in Tempe, Arizona. Rosita’s is an affordablerestaurant near campus and several hotels. Rosita accepts cash and checks. Checks are depositedimmediately. The bank charges $0.50 per check; the amount per check averages $75. “Bad”checks that Rosita cannot collect make up 3 percent of check revenue.During a typical month, Rosita’s has sales of $45,000. About 80 percent are cash sales.Estimated sales for the next three months are as follows:April $32,000May 45,000June 56,000 Required:Prepare a schedule of cash receipts for May and June. (Round all amounts to the nearestdollar.)
Kayla just signed a contract to purchase her inventory exclusively from one vendor. The contract allows for terms of 3/15, net 90. Kayla estimates that she will need to borrow $150,000 to take the discount. Her bank will lend money for 75 days at an interest cost of $2,000. Should Kayla borrow the money to take the discount? Or does it make more sense for her to not take the discount and just pay her invoice within 90 days? Back up your recommendations with your calculations.
37. 38. 39. Frank buys a classic Vegas chaise-longue from Sammy at a garage sale. Frank writes Sammy a check for $500 to pay for the chair. Sammy is the payee. the drawee. the drawer. none of the choices. a. b. C. d. Jack signs a check “pay to the order of Faye” drawn on Jack's account at Chinatown Bank. Jack has $500 in his account, but the amount of the check is $750, which the bank pays. This is a dishonored check. a. b. C. d. Alec writes a check drawn on Beetlejuice Bank for $250 "payable to Geena" on May 1. Alec dies on May 3. Geena presents the check to the bank on May 5. Unaware of Alec's death, the bank a. b. a cashier's check. an overdraft. a stale check. C. d. must certify the check. may pay the check. must consult with Alec's heirs before paying the check. can do nothing until Ian claims an interest in the account.
Selecting a Bank. Julie wants to open a bank account with $43. Julie estimates that she will write 23 checks per month and use her ATM card at the home bank. She will maintain a monthly balance of $500. Which bank should Julie choose? Hillsboro Bank First National South Trust Bank Sun Coast Bank ATM charges: Home bank Free Free Free Free Other bank 5 free, then $1.15 per use $1.40 per use $1.40 per use $1.40 per use Checking: Minimum deposit $100 $28 $1 $1 Minimum balance required to avoid fees* N/A N/A $500 N/A Monthly fees $8.66 $10.11 $15.88 $3.61 Check-writing charges 15 free, then $0.85 per check 10 free, then $0.85 per check Unlimited Each check $0.43 * N/A means monthly fees apply irrespective of account balances. Based on the information given in the chart, which bank should Julie…
Suppose that with the advent of ATMs, a person withdraws money once every two days. Further, suppose this person spends $10 per day. Calculate the amount of money this person withdraws each time she goes to the bank.
Jane has written out a check to Manny for $100. Unfortunately, the check was stolen by Stringer Bell who sold it to Freddy for $90. Stringer signed Manny's name even though he is not Manny. Freddy has no idea of the wrongdoing. Freddy presents the check to the bank but Jane and the bank say, "No way". Can Freddy get the $100? How?