On December 31. Coffey L03 Company issued 5300,000 of 15-ycar, ten percent bonds payable for $351.780. yielding an cffcc- iji tive intereM rate of eight percent. Interest is payable semiannually on June 30 and December 31 . Determine the financial statement effect of (a) the issuance of the bonds, (b) the first semiannual interest payment and premium amortization (effective interest method) on June 30, and (c) the second semiannual interest payment and premium amortization on December 31. Round

Select the correct answer. after the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy? a. the interest rate on loans will fall. b. people will demand more foreign goods. c. people will start borrowing more money. d. the economy will face inflation. e. foreign investments will increase.