Answer:
that's my answer please
and I hope it helps you my good friend
Answer:
The change in money supply amounts to $7,084,248
Explanation:
Computing the change in money supply as:
Using the multiplier as:
Multiplier = 1 / Required reserve ratio
where
Required reserve ratio is 0.220
So,
Multiplier = 1 / 0.220
Multiplier = 4.54
So, the new money supply would be:
= Multiplier × Old money supply
where
old money supply is $2,001,200
Multiplier is 4.54
So,
= 4.54 × $2,001,200
= $9,085,448
Therefore, change in money supply is:
Change in money supply = $ 9,085,4448 - $2,001,200
Change in money supply = $7,084,248
Answer:
Statement # 1: False
Statement # 2: True
Statement # 3: False
Statement # 4: True
Explanation:
Lets look at each statement provided in the question and determine which of them is true or false.
Statement # 1 is false. First things first, the interest on this loan amount is higher which is at 4.15%. This is compared to the interest of 4% applicable on loan option 1. Secondly, there is a four year interest only option. This means that for 4 years there will be no repayments of the principal amount which means that the interest of 4.15% will continue to apply on the entire loan amount for these 4 years. In loan 1 however, principal repayments will reduce the principal amount after the 1st year which would further reduce the interest payment in the second year.
Statement # 2 is true. Loan 2 has an interest only period for the first 4 years. During this year you will only pay the 4.15% interest whereas in loan option 1, you will pay 4% interest AND the principal amount. The effect would offset once principal payments start in loan 2 but it would still mean that payments would be minimized in the first few years.
Statement # 3 is false. One of the advantages of having a loan with an interest free clause is that you can pay it off faster than a conventional loan. Since both the loans are fully amortizing, the principal payments would be different but would both result in the principal being repaid in the full 30 year tenor. Any extra payment that you wish to make would be counted towards principal payment in each loan option. However, for loan 1, the total monthly payments you make would remain the same. For loan 2, the extra payments that you make will continue to lower the monthly payments in way of interest which would allow you to save up more to pay more off in principal. The interest only period will also allow you to arrange extra funds during the IO period and repay the principal further. With loan 1, you will continue to make the same monthly payment until the end.
Statement # 4 is true. A fixed payment is being made each year by way of interest and principal repayments and will remain the same till the loan is fully amortized at maturity. In loan 2 on the other hand, a larger balloon payment will start 4 years later since only interest is paid in the first 4 years. So basically you may lower in the first 4 years and more in the remaining years.
Answer:
Option C Customer demands
Explanation:
Customer demand is the desire of customer to have the product. Customer demand is also sometimes referred to as Product demand, though the customer demand is the features that the customer desires in the product and product demand is the demand of the product in the market. But one thing is common which is demand of the feature of the product. Now keep it simple, if their is a customer demand then there is business and if their is no customer demand their no business. Businesses collapse because there is no sales or in other words there is no demand of the product in the market and as a result the product sales is below no profit and no loss position. So the correct option is option C.
Answer:
The correct answer is d. none of the choices.
Explanation:
A contract is an agreement, usually written, although it can also be spoken, by which two or more parties mutually commit themselves to respecting and fulfilling a series of conditions. It is a type of legal act involving two or more people and is intended to create rights and generate obligations, therefore transmitting rights and obligations to the parties that sign it.
It is governed by the principle of autonomy of the will, according to which, it can be hired on any subject not prohibited. The contracts are perfected by mere consent and the obligations arising from the contract have the force of law between the contracting parties.
Currently the contract is an economic instrument to negotiate, to meet needs. Contracts are used to agree on services, products, locations, among others.
