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2 years ago

If the fed raised the reserve requirement, the demand for reserves would.

Business

1 answer:

Ilya [14]2 years ago

8 0

In a scenario where the fed raise the reserve requirement, the demand for reserves would increase.

<h3>What is a reserve requirement?</h3>

A reserve requirement simply means the amount of money that banks are expected to keep with the central bank.

It should be noted that when the fed raise the reserve requirement, the demand for reserves would increase, therefore, the federal rates would fall.

Learn more about reserve requirements on:

brainly.com/question/10684321

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Ksenya-84 [330]

Nowadays, finding a job is hard, which is the reason such a variety of individuals swing to hiring offices. Working for an employment Agency gives you the chance to make a wage for a specific sum a period and could prompt a full-time position. It additionally allows you to pick up involvement in a field you need to get into or simply pick up involvement as a rule. It is helpful to the organization too in light of the fact that it gives them individuals to fill in for representatives who might be on leave and it likewise gives the organization more prominent staffing adaptability. Another incredible professional of employing temps is an organization manufactures an association with hiring offices. This can be useful on the grounds that all the organization needs to do is tell the office what they require, and the office finds the individual.

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3 years ago

The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c

erastovalidia [21]

Answer:

Is out of the money

Explanation:

A strike price is a particular price which if activated, derivative contracts can be sold or bought. Derivatives are considered as products in finance where underlying assets are major determinants of their value.

The stock price is considered as the current price that a share of stocks is sold and bought on the market.

Because the strike price is $65 and the stock price (market price) is $60, Disney is out of money and cannot be exercised profitably.

7 0

3 years ago

The three important elements of a firm's business model are its target market, its basis for differentiation, and its ______

wlad13 [49]

Answer:

SEGMENTATION

Explanation:

The important elements involved of a firms business model are its TARGET market basis for differentiation and it segmentation these three elements involved results into important elements of a business model.

6 0

3 years ago

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $

inessss [21]

Answer:

Residual income is therefore $732,000.

Explanation:

This can be computed by following the following steps:

Step 1: Calculation of ending net book value

Particulars $'000

Beginning investment 6,900

add: Additional investment 8,100

Less: Depreciation - Other (2,850)

Ending net book value 12,150

Step 2: Calculation of Minimum required return

Minimum required return = Ending net book value * Required return rate = $12,150,000 * 12% = $1,458,000

Step 3: Calculation of profit (loss) on disposal

First year depreciation on investment = (Investment cost - Salvage value) / Useful life = ($6,600,000 - $660,000) / 3 = $1,980,000

Profit (loss) on disposal = Salvage value - Investment cost - First year depreciation on investment = $660,000 - $6,600,000 - $1,980,000 = $3,960,000 loss

Step 4: Calculation of residual income

Particulars $'000

Given operating profit of the division 6,150

Less: Loss on disposal (3,960)

Revised operating income 2,190

less: Minimum required return (1,458)

Residual income 732

Residual income is therefore $732,000.

7 0

3 years ago

Gary invested $1,000 in large U.S. stocks. This investment earned 15.05 percent in 2012, 33.35 percent in 2013, 11.50 percent in

anyanavicka [17]

Answer:

The answer is: Average return Gary earned is 14.97%.

Explanation:

Please find the below for detailed explanation and calculations:

The total increase of Gary's investment in large U.S. stocks from 2012 to 2015 is calculated as : (1+15.05%) x (1+33.35%) x (1+11.50%) + (1+ 2.10%) = 1.747 times. That is, he will get 1,000 x 1.747 = $1,747 at the end of 2015.

The average return of Gary's investment in large U.S. stocks from 2012 to 2015 ( 4 year period) is: [ (The fourth root of 1.747) - 1] x 100% =14.97%.

8 0

3 years ago