If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
33.33%
Explanation:
Let weight of T-bill be x, therefore weight of stock will be 1-x
Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills
1 = (1-x)*1.5 + x*0
1 = 1.5 - 1.5x
x = 0.5/1.5
x = 0.3333
x = 33.33%
Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.
Answer: Three items will appear being;
2. Sale of delivery truck at book value
5. Sale of a debt security held as an available-for-sale investment
6. Collection of loan receivable.
Explanation:
The Investment Section of the Cash Flow Statement contains activities related to investment such as the buying or selling of fixed assets and the buying or selling of other company stocks or bonds.
Out of the above therefore, there are 3 activities that would fall under this section of the Cash Flow Statement.
They are;
2. Sale of delivery truck at book value.
- This refers to the sale of a Fixed asset and as such it goes to the investment section.
5. Sale of a debt security held as an available-for-sale investment.
- As a debt security of another firm that was considered available for sale, this goes to the Investment Section as well.
6. Collection of loan receivable.
- Finally, collection of loan receivable means that the company loaned money to another company making it an investment related cash inflow as it is a long term Investment income source.
Answer:
the present value is $88,087.08
Explanation:
The computation of the present value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$203,000 = Present value × (1 + 0.11)^8
So, the present value is $88,087.08
hence, the present value is $88,087.08
Answer:
B. Economic classes
Explanation: its correct on eadg
