Answer:
If the required reserve ratio is 0, that means that the money multiplier will be infinite. I guess the question is incomplete.
I looked for similar questions to fill in the blanks:
If you deposit $2,400 and the required reserve ratio is 0.4, then by how much does the money supply increase?
first we must determine the money multiplier = 1 / required reserve ratio = 1 / 0.4 = 2.5
to determine the total effect on the money supply we just multiply the deposit by the multiplier = $2,400 x 2.5 = $6,000 increase.
When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
You would want to know the borrowers background history. U would also want to know if he can repay you. Ask your friend if his friend has borrowed money from him and been able to repay him. Hope this helps
Answer:
amortization expense is $36000
Explanation:
given data
purchased = $180000
time = 5 year
to find out
amount recorded as amortization expense
solution
we know here purchased patent for 180000 and here life is 5 years
so here
amortization expense will be purchased / time
amortization expense = purchased / time
amortization expense = 180000 / 5
so amortization expense is $36000
Answer:
$100
Explanation:
Alto's share value = (2,400 × $24) = $57,600
Alto's total value = Share value + Incremental value of acquisition = $57,600 + $5,500 = $63,100
Net present value (NPV) = Alto's total value - Cost of acquisition = $63,100 - $63,000 = $100
Therefore, the net present value of acquiring Alto to Solo is $100.
