Jared read an article that showed a dramatic increase in money market accounts and certificates of deposit in the last quarter The story reported that all other major components of the U. S. money supply remained unchanged. Based on this information, Jared can conclude that for the past quarter :. a. both the M-1 and M-2 money supplies were stable.
b. both the M-1 and the M-2 money supplies have increased M
c. the M1 money supply has increased, but the M-2 money supply was stable
d. the M-2 money supply has increased, but the M.1 money supply was stable

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Taking commercial paper means the holder acts honestly

In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?