Concept explainers
a)
To identify: The number of times a person must visit the bank.
Inventory and supply chain models:
The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.
b)
To identify: The amount of money the person must withdraw each time going to the bank.
c)
To identify: If a person will go to the bank more or less often if the need for cash increases.
d)
To identify: If a person will go to the bank more or less often if the interest rate increases.
e)
To identify: If a person will go to the bank more or less often if the number of tellers increases.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
EBK PRACTICAL MANAGEMENT SCIENCE
- You deposit $6,000 in an account earning 2% interest compounded monthly. How much will you have in the account in 10 years?arrow_forwardSubject:arrow_forwardA Mortgage Backed Bond differs from a Pass-Through Security in that I. the MBB does not result in the removal of mortgages from the balance sheet. II. a MBB holder has no prepayment risk. III. cash flows on a MBB are not directly passed through from mortgages. O A. I, II, and III B. I and II only C. II and III only O D. I and III only O E. I onlyarrow_forward
- In cash management, the difference between the bank balance for a firm's account and the cash balance that the firm shows on its own books is called O A. float O B. bank charges O C. interest income D. reconciling itemarrow_forwardI need both answers typingarrow_forward35) Orders for a stock trading system are coded as follows from left to right: i. The first character is 'B' for a "buy" order, 'S' for a "sell" order ii. The number of shares to buy or sell iii. The stock ticker symbol in all uppercase letters for a "buy" order or alf lowercase letters for a "sell" order iv. If the order is a "limit" order with a specific buy/sell price, the requested price in pennies, otherwise the price should be omitted and the order will be a market order at the current asking price for the stock v. If the order is a "limit" order with an expiration time, the character 'T' followed by the number of minutes until the order expires and should no longer be executedarrow_forward
- Assume “Jane” saves $10,000 per year for 10 years starting at age 25. At age 35 she no longer is able to save but leaves her accumulated savings invested until age 65 when she retires. Assume “John” does not begin saving until age 35, but then saves $10,000 per year until age 65 when he also retires. Assume John and Jane invest their entire wealth in the same mutual fund. Who accumulates a larger retirement nest egg? 1. Answer this question by building an Excel spreadsheet that allows you to show the difference in wealth at age 65 assuming an annual rate of return of 8%. Make sure your model allows you to change the assumed rate of return and automatically recalculate the difference in wealth at age 65. 2. At what assumed rate of return are John and Jane’s wealth at age 65 equal? Use “Goal Seek” in order to find this rate of return. 3. Create a graph to clearly show how final wealth for John and Jane depends on the rate of return. Start at 0% and increase the rate of return in…arrow_forward41. A typical monthly home loan payment includes principal, interest, taxes, and insurance. Why do lenders require borrowers to contribute to their annual property taxes with each monthly loan payment? A borrower never pays a portion of their annual taxes as part of their monthly loan payment. Instead, they make a single lump- sum payment each year. It allows the borrower to pay less in property taxes each year. It serves as security for the lender. This way the lender ensures the borrower's taxes are paid each year and a tax lien will not be placed on the property. It allows the borrower to write-off their tax payments when filing their personal income taxarrow_forwardIt is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank? a. sales volume b. confirming that the sum of the expected profit after taxes plus depreciation exceeds the annual repayment. c. Ensuring that profit before interest and taxes is approximately 5% of salesarrow_forward
- Suppose that machinery used by a bank for sorting and clearing cheques breaks down. This is a manifestation of: Select one: a. Liquidity Risk b. Operational Risk c. Credit Risk d. Insolvency Riskarrow_forwardWhat are 3 important reasons to reconcile bank and credit card accounts at set dates?(Select all that apply) A. To verify transactions have the correct date assigned to them B. To verify that an account balance is within its credit limit C. To verify that all transactions have been recorded for the period D. To verify that previously reconciled transactions have not been changed since the last reconciliation E. To verify that the bank has not lost its connection to QuickBooks Onlinearrow_forwardBarbara Flynn sells papers at a newspaper stand for $0.40. The papers cost her $0.30, giving her a $0.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 150 papers. b) 20% of the time she sells 200 papers. c) 30% of the time she sells 250 papers. d) 30% of the time she sells 300 papers. Assuming that Barbara believes the cost of a lost sale to be $0.05 and any unsold papers cost her $0.30 and she orders 250 papers. Use the following random numbers: 14, 4, 13, 9, and 25 for simulating Barbara's profit. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probability distribution and the order size, for the given random number Barbara's sales and profit are (enter your responses for sales as integers and round all profit responses to two decimal places): Random Number Sales Profit 14 4 13 9 25arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,