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2 years ago

contains funds you have in your bank checking account as travelers' checks and the currency in circulation in the economy.

1 answer:

3 0

<u> M1 </u> contains funds you have in your bank checking account as travelers' checks and the currency in circulation in the economy.

<h3><u>What exactly is M1?</u></h3>

Currency, demand deposits, and other liquid deposits, such as savings accounts, make up M1, which is the money supply. Due to the fact that M1 contains assets and currencies that are either already cash or can be swiftly changed into cash, it is the most liquid element of the money supply. M2 and M3's "near money" and "near, near money," which fall under these categories, cannot, however, be changed to money as rapidly.

<u>How to Determine M1?</u>

The coins and notes of the Federal Reserve that are in circulation outside of the vaults of depository institutions and the Federal Reserve Banks make up the M1 money supply, also known as bills or paper money. The mainstay of a country's monetary system is paper money.

M1 also comprises demand deposits, other checkable deposits (OCDs), traveler's checks (issued by non-banks), NOW accounts at depository institutions, and credit union share draft accounts.

M1 covers securities that are easily redeemable and in circulation for the majority of central banks. However, the term varies a little bit depending on where you are.

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Microsoft presently pays no dividend. You anticipate Microsoft will pay an annual dividend of $0.60 per share two years from tod

Scorpion4ik [409]

Answer:

The value of this stock today should be $6.22

Explanation:

The company will start paying dividends 2 years from today that is at t=2. The dividends received 2 years from today can be denoted as D2. The constant growth model of DDM will be used to calculate the price of this stock at t=2 as the growth rate in dividends is constant forever.

The price at t=2 will then be discounted back to its present value today to calculate the price of this stock today.

The price of this stock at t=2 will be,

P2 = D2 * (1+g) / (r - g)

P2 = 0.6 * (1+0.04) / (0.12 - 0.04)

P2 = $7.8

The value of this stock today should be,

P0 = 7.8 / (1+0.12)^2

P0 = $6.218 ROUNDED OFF TO $6.22

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3 years ago

Read 2 more answers

A firm that produces bluetooth speakers collected the following data to determine their possible profits. What profit will bluet

Lostsunrise [7]

The profit will Bluetooth speaker sales bring this firm when it sells at the profit-maximizing level of output is $975

Profit-maximizing level

In economics, profit maximizing level of output means where its marginal cost (MC) just equals the product price and where marginal cost is increasing; that is, the MC curve is sloping upward.

Given

A firm that produces Bluetooth speakers collected the following data to determine their possible profits.

Here we need to find the profit will Bluetooth speaker sales bring this firm when it sells at the profit-maximizing level of output.

In order to find the profit-maximizing level of output for the Bluetooth, we have to subtract the maximum price by the minimum price.

For example let us consider $1000 be the maximum price of the Bluetooth and $25 is minimum price of the Bluetooth,

Then the profit-maximizing level of output is calculated as,

=> 1000 - 25

=> 975.

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4 0

1 year ago

When military spending fell dramatically at the end of the cold war this was referred to as a?

olga_2 [115]

The United states has the massive spending when it comes to the money they have spent buying the things that they would need if they are going to engage on a fight or worse, on a war. This spending is concentrate in North America and of course the Europe. That was when a major feel down struck them.

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4 years ago

Identify each person in the table as structurally, frictionally, or cyclically unemployed.

Soloha48 [4]

Answer:

a. Structurally unemployed.

b. Cyclically unemployed.

c. Frictionally unemployed.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Natural Rate of Unemployment (NU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Cyclical unemployment rate (CU).

a. Structurally unemployed: Lorenzo recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.

b. Cyclically unemployed: Teresa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full time job. A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

c. Frictionally unemployed: Neha just graduated from college and is looking for a full- time position with an investment banking firm.

6 0

3 years ago

The budget for the month of May was for 9,600 units at a direct materials cost of $21 per unit. Direct labor was budgeted at 30

Degger [83]

Answer: a) unfavorable direct labor price (rate) variance of $2,085.

Explanation:

The purpose of calculating variance is to see if a company is being efficient in it's production of goods and services or in it's general affairs. The variance is calculated by subtracting the actual amount that was used to do something from it's budgeted amount.

If the actual amount is higher then the Variance is said to be Unfavourable. The reverse holds true.

Calculating the Direct Labor price (rate) Variance will give us,

Direct Labor Price (rate) Variance = (Actual Price - Standard price)*Actual Hour

NB - Figures are given for 30 minutes so need to be converted.

Direct Labor Price (rate) Variance = (111,285/9,100 *2 - 115,200/9,600 * 2 ) * 9100/2

= $2,085

Actual Price (rate) variance was higher than Standard Price (rate) variance which led to an Unfavourable balance of $2,085

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3 years ago