Answer:
35000
A, d
Explanation:
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
If $3500 is deposited and reserve requirement is 10%
reserves would increase by $3500 x 0.10 = $350
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
3500 / 0.1 = 35000
If the banks keep excess reserves, the amount of money available to be loaned out would reduce and this would reduce the increase in money supply.
Also, if individuals keep the money at home, it would reduce the amount of money that can be loaned out by banks
Answer: $245
Explanation:
If the required return on the stock is 7 percent, the current share price would be calculated as:
= 6.60/1.07 + 17.60/1.07^2 + 22.60/1.07^3 + 4.40/1.07^4 + [(4.4 × 1.0525) / (7%-5.25%)] / 1.07^4
= $245.23
= $245 approximately
Therefore, the current share price will be $245
Answer:
with the new rate we will pay in 58 months.
if there is 2% commision charge: 59.35 = 60 months
Explanation:
Currently we owe 10,000
This will be transfer to a new credit card with a rate of 6.2%
We are going to do monthly payment of 200 dollars each month
and we need to know the time it will take to pay the loan:
We use the formula for ordinary annuity and solve for time:
C $200.00
time n
rate 0.005166667 (6.2% rate divide into 12 months)
PV $10,000.0000
We arrenge the formula and solve as muhc as we can:
Now, we use logarithmics properties to solve for time:
-57.99227477 = 58 months
part B
If there is a charge of 2% then Principal = 10,000 x 102% = 10,200
we use that in the formula and solve:
-59.34880001 = 59.35 months
Answer:
D. Recommendation to buy life insurance does not make the investment advice any less objective.
Explanation:
investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer
In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer
✓. Sale of the mutual fund mayor is alt in a taxable event to the customer
✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm
✓Agent will earn a commission on the life insurance purchased by the customer
