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timurjin [86]
3 years ago
13

The smaller the required reserve ratio the larger the simple deposit multiplier. Do you agree or disagree with this statement. E

xplain your answer.
Business
1 answer:
TiliK225 [7]3 years ago
8 0

Answer:

Agree

Explanation:

A deposit multiplier is maximum amount of money that can be created for each unit of reserve. It is key requirement for maintaining economy's basic money supply. The simple deposit multiplier is 1 / rr * change in R. Deposit multiplier is the inverse of reserve ratio. The higher the reserve ratio the lesser will be the deposit multiplier. Reserve ratio is the minimum amount of money that must be kept in the deposit.

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Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value o
Lisa [10]

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come

5 0
3 years ago
Mr. Wise is retiring In 25 years He would like to accumulate $1,000.000 for his retirement fund by then He plans make equal mont
Montano1993 [528]

Answer:

$532.24

Explanation:

Since Mr. Wise will be making monthly payments for the period of 25 years in order to accumulated the $1,000,000 at the end of 25 years, therefore, the future value of annuity shall be used to determine the monthly payments to be deposited by Mr Wise. The formula of future value of annuity is given as follows:

Future value of annuity=R[((1+i)^n-1)/i]

In the given scenario:

Future value of annuity=amount after 25 years=$1,000.000

R=monthly payments to be deposited by Mr Wise=?

i=interest rate per month=12/12=1%

n=number of payments involved=25*12=300

$1,000,000=R[((1+1%)^300-1)/1%]

R=$532.24

7 0
3 years ago
Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $
exis [7]

Answer:

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

  • The property should be exchanged only for the 'like-kind' (same class) property.
  • The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes.
  • The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

B)  

Description                           Amount ($)

Fair market value of bowling alley   120,000

<u>Add: Mortgage value L is relieved off     40,000</u>

Amount reali7ed                      160,000

<u>Less: Adjusted basis             (175:000) </u>

<u>Realized loss by L                      (15,000) </u>

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description                         Amount ($)

Fair market value of bowling alley        120,000

<u>Add: Deferred loss                   15,000 </u>

<u>Basis of bowling alley                  135,000 </u>

8 0
3 years ago
Fundamentals of Supply are view for the point of the
ivanzaharov [21]

Answer:

Supply side is the view point of the Firms or the Businesses.

Explanation:

As the law of demand deals with the consumers side, the law of supply deals with the suppliers or the firms/businesses.

this tries to explain the factors that affect the supply, such as the prices of the substitutes and complements, the price of a commodity itself, taxes, government subsidies, technological influences, etc...

in this question, the 1st option, consumer is wrong. However, in certain situations, Government can be acted as a "supplier" (if there is a government monopoly on the supply of a good or a service", and government is a heavy influencer of supply through the implementaion of taxes and subsidies!  

5 0
3 years ago
Economics is mainly concerned with the study of
krek1111 [17]
Economics is mainly concerned with the study of scarcity. It is a branch of knowledge concern with the production , consumption and transfer of wealth.
6 0
3 years ago
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