Answer:
Increase by $500 m
Increase by $250 m instead of $500 m
Explanation:
Since all the deposits over and above the reserve requirements are loaned out by the banks,
We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.
Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times
So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.
For a 20% reserve ratio, Credit multiplier changes a,
Credit Multiplier = 1 / 0.2 = 5 times
This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.
Hope that helps.
Answer:
a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.
Explanation:
The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc
So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase
Answer:
Emotional contagion
Explanation:
Emotional contagion occurs when the emotions of one person triggers those same emotions in other people, this can be done implicitly or explicitly.
Emotional contagion can also be defined as a process by which a person or group affects another person or group's emotion by concious induction of emotions or through their behaviour. It helps in team synchronisation emotionally.
As the manager is always expressing enthusiasm and appreciation for the work of his subordinates, through emotional contagion it will be replicated in the office staff.
<span>
<span>CPI
refers to a weighted average of the price of a basket of essential goods and
services over a period of time in comparison to the same period in the past
(base period). The value of '220' means that prices of the goods/services in
the aforementioned basket are 120% higher than they were during the base period (1983). The purpose of calculating this metric is to highlight the effect of
inflation on the purchasing power of the people within that particular place.
Examples of goods and services that are often included in this basket are
food, housing transport and healthcare (based on the consumer habits of that
particular place.</span></span>
Answer:
PMT = $3875.00
Explanation:
given data
annuity selling = $14,427.59
time = 4 year
interest rate = 5 %
solution
we get here annual annuity payment that is express as
PMT = ..................................1
put here valuer and we get
PMT =
solve it now and we get
PMT = $3875.00
so here value of the annual annuity payment (PMT) is $3875.00