While jon is walking to school one morning, a helicopter flying overhead drops a $100 bill. not knowing how to return it, jon keeps the money and deposits it in his bank. (no one in this economy holds currency.) lfthe bank keeps 5 percent ofits money in reserves: a. how mud'i money can the bank initially lend out? b. after this initial transaction, by how much is the money in the economy changed? q what’s the money multiplier? d how much money will eventually be created bythe banking system from jon's $100?

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?