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3 years ago

Using the supply and demand for loanable funds model, explain why the central bank may aggressively expand the monetary base.

1 answer:

8 0

Answer: This means that there may remain room for an increase in the monetary base to . Finally, we discuss reasons why the expansion of the monetary base at ..A central bank can lower longer-term interest rates even when . small, why does the Bank not aggressively try the “unconventional” policy of purchasing some specific.

Explanation: Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions.

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If Samatha finances the entire cost of a $700 bike at an APR of 2.95%, how much will she end up paying in total for the bike aft

12345 [234]

Based on the interest rate, the cost of the bike, and the period of payment, Samatha will pay $721.71.

<h3>What will Samatha pay?</h3>

Samatha will pay a certain amount monthly. That amount can be found as:

Loan amount = Amount x ( 1 - ( 1 + rate) ^-number of periods) / rate

Solving gives:

700 = Amount x ( 1 - (1 + 2.95%/12) ⁻²⁴ / 2.95%/12 months)

Amount = 700 / ( 1 - (1 + 2.95%/12) ⁻²⁴ / 2.95%12 months)

= $30.07

Total amount paid by Samatha:

= 30.07 x 24 months

= $721.71

Find out more on loan payments at brainly.com/question/26011426.

4 0

1 year ago

A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The

Ksivusya [100]

Answer:

$45,297

Explanation:

Data provided as per the question

Installment = $9,000

Present value factor = 5.0330

The calculation of present value is shown below:-

Present value = Installment × Present value factor

= $9,000 × 5.0330

= $45,297

Therefore for computing the present value of the loan we simply multiply the installment with present value factor.

5 0

3 years ago

Agee Storage issued 33 million shares of its $1 par common stock at $21 per share several years ago. Last year, for the first ti

Tpy6a [65]

Answer:

$23 million

Explanation:

Calculation to determine at what amount will Agee’s total paid-in capital decline

First step is to calculate the Cash paid for the first repurchase

Cash paid for the first repurchase = 1 million * 19

Cash paid for the first repurchase = $19 million

Second step is to calculate the Value of first purchase

Value of first purchase = 1 million * 21

Value of first purchase = $21 million

Third step is to calculate the Benefit on first repurchase

Benefit on first repurchase = 21 million - 19 million

Benefit on first repurchase = $2 million

Fourth step is to calculate Cash paid for second repurchase

Cash paid for second repurchase = 1 million * 24

Cash paid for second repurchase = $24 million

Fifth step is to calculate the Value of second purchase = Reacquired shares * Common stock price

Value of second purchase = 1 million * 21

Value of second purchase = $21 million

Last step is to calculate the Decline in total paid-in capital using this formula

Decline in total paid-in capital= Benefit on first repurchase + Value of second purchase

Decline in total paid-in capital = 2 million + 21 million

Decline in total paid-in capital = $23 million

Therefore what amount will Agee’s total paid-in capital decline is $23 million

8 0

2 years ago

What are a firm's key assets?

I am Lyosha [343]

Key assets represent knowledge that your business has that is critical to the operation of your business. ... Basically, anything about your business that is essential to its core operation would be considered a knowledge asset.

5 0

3 years ago

Read 2 more answers

Discuss 4 contributing factors that lead to poor service delivery. and corruption

alex41 [277]

The factors like democracy, poor leadership, lack of communal participation and inefficient strategic management lead to poor service delivery and corruption.

<h3>What is service delivery?</h3>

The process of providing service to the customer or subscriber, by whatever name called, who is being supplied with such services by the provider, is known as a service delivery.

Hence, the significance of service delivery is as aforementioned.

Learn more about service delivery here:

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7 0

1 year ago