Answer:a.
It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
Explanation:
A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result - It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:
MONEY SUPPLY = RESERVES X MONEY MULTIPLIER
Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.
Answer: The answer is No, because the MB > MC
Explanation:
They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,
No, because the MB > MC,
Yes, because the MB > MC and
No, because the MC > MB are wrong.
US lifestyle shifts have expanded the careers for "daycare providers", since many more women have joined the work force in the past two decades--meaning that they can't be at home with their children.
Answer:
The answer is D
Explanation:
Intrinsic value can be found by simply using the following formula
Put intrinsic value = Strike Price - Current selling price
this gives,
PIV = $45 - $50 = $-5
A put intrinsic value cannot be vegetative as it can be exercised right now at the current price. Thus it is interpreted as 0.
Time value is calculated as follows
Time Value = Option Price - Intrinsic Value
This gives TV = $3.5 - $0 = $3.5
Hope this helps.
