Answer:
(a) Excess reserves = 200
(b) Monetary base (B) = 900
(c) Money multiplier = 10
Explanation:
Assuming that the required reserve ratio (missing in the question) is 0.1:
(a) Excess reserves = Reserves - Required reserves
Reserves = 400
Required reserves = Deposits x Required reserve ratio
= 2000 x 0.1
= 200
Hence, Excess reserves = 400 - 200
= 200
(b) Monetary base (B) = Reserves + Currency
= 400 + 500
= 900
(c) Money multiplier = 1 / Required reserve ratio
= 1 / 0.1
= 10
Answer:
The necessary investement today is $783.53
Explanation:
Giving the following information:
An investor wishes to have $1,000 available in five years. The interest rate is 5%.
We need to use the following formula:
PV= FV/(1+i)^n
FV= 1000
i=0.05
n=5
PV= 1,000/(1.05)^5= $783.53
Answer:
II, III, IV are correct
Explanation:
According to my knowledge and understanding cash flow projection for a new product should include:
II. Capital expenditures for equipment to produce the new product,
III. Increase in working capital needed to finance sales of the new product,
IV. Interest expense on the loan used to finance the new product launch.
whereas Money already spent for research and development of the new product is irrelevant as it was incurred already and not incremental.
Answer:
The demand curve for Pepsi and Coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.
Explanation:
As in the question it is mentioned that the if the Pepsi and Coke do not change the formula and all other things being constant so the demand for the goods in case of the competitive market is that the demand curve is shifted to the left which results in a decrease in the price of both goods also due to price falls the profits for both companies dropped.
False.................................................