Given:
Checkable deposit = $100 million
actual reserves = $12 million
required reserve ratio = 10%
100 million * 10% = 10 million
10 million - 12 million = 2 million excess reserves
D.) $2 million is the bank's excess reserves
Answer: 283.322 HUF
Explanation:
Following the information given in the question, the following can be deduced:
Spot rate = 267.767
Foreign currency interest rate (rf) = 1.6%
Home currency interest rate (rh) = 3.5%
Number of years (n) = 3
Therefore, the expected exchange rate 3 years from now will be calculated as:
= Spot × (1+(rh - rf))^n
= 267.767 × [1 + (35% - 16%)]³
= 267.767 × [1 + (0.035 - 0.016)]³
= 267.767 × 1.0581
= 283.322 HUF
Therefore, the expected exchange rate 3 years from now will be 283.322 HUF.
South Carolina is the choice you’re looking for.
By definition, the articles of incorporation are business documents wherein it generally contains the background information of a firm as well as its address, name, and contact information. In addition, it is generally presented to the executives most commonly the Secretary of State for approval.
Answer:
I would choose equity financing.
Explanation:
The reason is that in the first stages of a business, it is hard to obtain debt financing, even if the company is growing, because financial institutions assess risk, but also corporate perfomance in terms of liquidity, profitability, and efficiency, and these assessments may not be good enough in a young company for a financial institution to approve the loan.
For this reason, equity financing becomes a better alternative, even if some control of the company has to be given away. In order to reduce such control loss, a mix of common stock and preferred stock could be issued, with preferred stock holders having more entitlements to dividends, but no entitlements to corporate control.
