Answer:
Reserve requirement = 40 / 300
Explanation:
Given:
Excess reserve = $5 million
Total deposit = $300 million
Total loan = $255 million
Computation of reserve requirement:
Reserve requirement = (Total deposit - Excess reserve - Total loan) / Total deposit
Reserve requirement = ($300 - $255 - $5) / $300
Reserve requirement = ($300 - $260) / $300
Reserve requirement = ($40) / $300
Reserve requirement = 40 / 300
Answer: The more narrowly we define a market, the more elastic the demand for a product will be.
Explanation: Narrowly defined markets tend to have more elastic demand than broadly defined markets because it is easier to find close substitutes for narrowly defined goods.
For example, a broad category of food, has a fairly inelastic demand because there are no good substitutes for food while Vanilla flavoured ice cream, a very narrow category, has a very elastic demand because other flavors of ice cream (e. g Chocolate) are perfect substitutes for vanilla.
Answer:
Government of South Africa
Explanation:
Answer:
6291.26$
Explanation:
In order to calculate the present value of the cash flow, we apply the formula for the present value of annuity due:

where:
P is the value of the periodic payment
r is the discout rate
n is the number of periods
In this problem, we have:
(periodic payment)
n = 11 y (number of years)
(discount rate is 7.5%)
Therefore, the present value of the cash flow is:
