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3 years ago

Why might currencies issued by the many state banks have caused confusion before the Civil War?

1 answer:

3 0

During pre-Civil War times in the United States, banks around the country issued bank notes as a form of currency. The large number of banks led to a large number of diverse bank notes that circulated around the country. Although many banks issued only enough bank notes that could be backed up by specie (gold and silver during the time), riskier banks gave into temptation and issued more than they could cover. This practice caused many people to doubt the exact worth of certain notes and in turn have little faith in some banks.

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You manage a portfolio worth $13.8 million, currently all invested in equities, and believe that the market is on the verge of a

antiseptic1488 [7]

Answer:

1. According to the given data, he should be short the index contracts. In the event of stock value falling, he gets future profits to offset the loss from the falling price of the equity

2. You should enter into 42 contracts

3. You should enter into 21 contracts

Explanation:

1. According to the given data, he should be short the index contracts. In the event of stock value falling, he gets future profits to offset the loss from the falling price of the equity.

2. To calculate how many contracts should you enter, first we need to calculate the number of contracts required to hedge the portofolio as follows:

number of contracts required to hedge the portofolio as follows=$250×1,286

number of contracts required to hedge the portofolio as follows=$321,500

Therefore, number of contracts to hedge= portfolio worth/Each contract worth

number of contracts to hedge=$13.800.000/$321,500

number of contracts to hedge=42

You should enter into 42 contracts

3. If you decide to reduce portfolio beta to 0.5 the index futures contracts should you enter into is calculated as follows:

number of contracts to hedge= (portfolio worth/Each contract worth)×beta

number of contracts to hedge=($13.800.000/$321,500)×0.5

number of contracts to hedge=21

You should enter into 21 contracts

5 0

3 years ago

Consider the following information about menu costs. Menu costsLOADING... are

brilliants [131]

Answer:

The correct answer is option A.

Explanation:

Menu costs can be defined as the cost which is incurred by the firms because of changing prices. The size of the menu costs depends upon the type of firm.

There are some costs involved in printing menus, price lists, brochures, catalogs, and price tags, etc.

The concept of menu costs was given by Eytan Sheshinski and Yoram Weiss in 1977. It is used to explain price stickiness in a market.

In case the current price differs from the equilibrium price, the firms will change their price only if the additional revenue from a price change is able to cover menu costs incurred due to price change

7 0

3 years ago

Why should Microsoft Word be used to create the lost cat flyer? (Select all that apply) MS Word is the only application that cou

SVETLANKA909090 [29]

Answer:

I don't know the answer u rlooking for

3 0

3 years ago

If the reserve ratio is 5% and the change in reserves is $10 billion, then the money multiplier is _____ and the change in the m

Ahat [919]

The money multiplier is 20 and the change in the money supply is $200 billion.

<h3>What is the money multiplier and change in money supply?</h3>

The money multiplier is the inverse of the reserve ratio. Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply.

Money multiplier = 1 / reserve ratio

1/5%

1 / 0.05 = 20

The change in money supply is the product of the money multiplier and the change in reserve.

Change in money supply = money multiplier x change in reserves

20 x $10 billion = 200 billion

To learn more about reserve ratio, please check: brainly.com/question/6831267

#SPJ1

7 0

2 years ago

On June 1 of the current year, Jack and Angie purchased a rental beach house for $900,000 and rented it right away. Of that amou

nalin [4]

Answer:

a. $5,910

Explanation:

The computation of the deduction amount for depreciation is shown below:

= (Rental beach house - the amount of the land value) × depreciation rate

= ($900,000 - $600,000) × 1.97%

= $300,000 × 1.97%

= $5,910

Refer to the depreciation table and we assume the year would be 1 and the recovery period is 19 years is 1.97%

7 0

3 years ago