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Question - On August 31, 2012, the general ledger of The Dean Acting Academy shows a balance for cash of $7,943. Cash receipts yet to be deposited into the checking account total $3,264, and checks written by the academy but not yet processed by the bank total $1,310. The company's balance of cash does not reflect a bank service fee of $55 and interest earned on the checking account of $24. These amounts are included in the balance of cash of $5,958 reported by the bank as of the end of August.
Required: Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2012.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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