Answer:
high watermark
Explanation:
A high watermark refers to the mark at which the investment could be reached at a high peak. It to be calculated on that date when the performance fees are charged and it could be charged only on that case when there is a rise in the value of the portfolio
Moreover, in the high watermarks there is no need to pay the performance based fee when there is a poor performance
Therefore the given situation represent the high watermark
Option C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.
<u>Explanation:</u>
Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.
If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.
The answer would be Health and Government, I believe.
Answer: $25 billion
Explanation:
The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:
= Deposit into banking system * Money multiplier
Money multiplier = 1 / Required reserve ratio
= 1 / 20%
= 5
Checkable deposit increase:
= 5 billion * 5
= $25 billion
