Answer:
$354,500
Explanation:
First find the amount invested ie the Present Value as follows :
n = 25 × 2 = 50
i = 5%
P/yr = 2
Pmt = $0
Fv = $500,000
Pv = ?
Using a Financial Calculator to enter the amounts as above, the Present Value is $145,471
Total Interest = Future Value - Present Value
= $500,000 - $145,471
= $354,529
Thus interest is $354,500 (nearest hundred dollars).
The main source of income for the Federal Reserve System is interested in US government assets that the Federal Reserve has purchased through open market activities.
<h3>
What determines the supply of money?</h3>
The Central Bank controls the money supply through its "monetary policy," and the economy must function with that predetermined amount of money. The money supply is seen as entirely vertical because the economy has no bearing on its amount (on models).
By increasing or decreasing the monetary base, the Fed can regulate the amount of money in circulation. The amount of money in circulation plus the deposits that depository institutions have with the Federal Reserve make up the monetary base, which is correlated with the size of the Fed's balance sheet.
Learn more about The Supply of Money here:
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It can mean that the bank is running low on liquidity of
cash. In the banks are required to keep a minimum of liquidity to be able to
give loans and keep the cash flow. In case the bank is running low on liquidity
the customer should inform the central bank and the central bank should fine
the bank for not maintaining the liquidity.
Answer:
Number of new shares:
= 100,000×(1÷2)
= 50,000
Amount of new investment:
= 50,000×$10
= $500,000
Total value of company after issue:
= $500,000+100,000×$40
= $4,500,000
Total number of shares after issue:
= 100,000+50,000
= 150,000
Share price after issue:
= $4,500,000÷150,000
= $30
Answer:
The person with Absolute advantage is the one that produces more of a good than the other.
<em><u>Dina </u></em><em>has an absolute advantage in the production of alfalfa, and </em><em><u>Charles</u></em><em> has an absolute advantage in the production of barley. </em>
The person with Comparative Advantage is the person who produces something at a lower opportunity cost.
Charles Opportunity Costs
Producing Alfalfa gives 12 bushels per acre instead of 6 bushels for Barley.
Producing 1 Alfalfa means 6/12 = 0.5 bushels Barley is given up
Producing 1 bushel of Barley means 12/6 = 2 bushels Alfalfa is given up.
Dina Opportunity Costs
Producing Alfalfa gives 15 bushels per acre instead of 5 bushels for Barley.
Producing 1 Alfalfa means 5/15 = 0.33 bushels of Barley is given up
Producing 1 bushel of Barley means 15/5 = 3 bushels of Alfalfa is given up.
<em>Charles's opportunity cost of producing 1 bushel of barley is </em><em><u>2</u></em><em> bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is </em><em><u>3</u></em><em> bushels of alfalfa. Because Charles has </em><em><u>lower</u></em><em> a opportunity cost of producing barley than Dina, </em><em><u>Charlie</u></em><em> has a comparative advantage in the production of barley, and </em><em><u>Dina</u></em><em> has a comparative advantage in the production of alfalfa.</em>
