Answer: B. The Fed cannot control the amount of money that households choose to hold as currency.
Explanation: If the Federal government wants to control the money supply, they will buy government bonds. For the Fed to pay for the bonds, the Fed will creates money. Its purchase of bonds will put the new money in the hands of the public.
But one thing the federal government cannot control is the amount of money households choose to hold as currency.
Answer:
portfolio's new beta is 1.25
Explanation:
Total number of stocks available in the portfolio = 15
Total portfolio = 1.20
Beta of stock to be sold = 0.8
Beta of stock to be purchased = 1.6
Weight of one stock (replacing stock) = 1/15
New portfolio beta = Total portfolio - (Weight * Beta of selling stock) + (Weight * Beta of purchasing stock)
New portfolio beta = 1.20 - [(1/15) * 0.8] + [(1/15) * 1.6]
= 1.20 - 0.05333 + 0.10667
= 1.25334
≈ 1.25
Answer:
a. True
Explanation:
It is true that her situation characterizes what her economics professor's mentioned on stagflation.
She experienced high internet cost more than she is paying, she was also notified on an increase in the utility summer rates, increase in the cost of her schoolbooks, and gasoline all point to what stagflation is.
Stagflation is detected when a nation experiences slow economic growth obvious with an increase in the cost of goods, which means a reduction in purchasing power as Casey experienced. When companies want to still be running their business, they will increase the cost of their services as there are fewer goods available and the currency weakened.
Answer:
c. Between 9 and 10 years
Explanation:
The computation of the time period is shown below:
Future value = Present value × (1 + interest rate)^number of years
$4,000 = $2,000 × (1 + 7.5% ÷4)^time period ×2
After solving this
The time period is
= 9.3283
Hence, it lies between the 9 and 10 years
Therefore the correct option is c.
And all other options are wrong.
Answer:
Monthly payments=($56890.673/36)=$1,580.296
Explanation:
The formula for calculating the compound interest is given as;
A=P(1+r/n)^nt
where;
A-Amount to be paid after a given period of time
P-Principal amount initially taken=$52,000
r-The annual interest rate=3%=3/100=0.03
n-Number of times the interest is to be compounded per unit time=12
t-3
Replacing;
A=52000(1+0.03/12)^3
A=52000(1.0025)^(3×12)
A=56,890.673
The total amount after 36 months=$56,890.673
Monthly payments=($56890.673/36)=$1,580.296
