Suppose you deposit $2,000 in currency into your checking account at a branch of bank of america, which we will assume has no excess reserves at the time you make your deposit. also assume that the required reserve ratio is 0.20.
a. use a t-account to show the initial impact of this transaction on bank of america’s balance sheet.
b. suppose that bank of america makes the maximum loan they can from the funds you deposited. using a t-account, show the initial impact of granting the loan on the balance sheet. also include on this account the transaction from (a).
c. now suppose that whoever took out the loan in (b) writes a check for this amount and that the person receiving the check deposits it in a branch of citibank. show the effect of these transactions on the balance sheets of bank of america and citibank bank, after the check has been cleared.
d. what is the maximum increase in checking account deposits that can result from your $2,000 deposit? what is the maximum increase in the money supply? explain.

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u. s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.