If a bank has <u>more</u> ratesensitive assets than liabilities, then <u>an increase</u> in interest rates will increase bank profits.
In financial accounting, a liability is defined as the future sacrifices of financial benefits that the entity is obliged to make to other entities due to past transactions or different past occasions, the agreement of which may additionally bring about the transfer or use of belongings, provision of services or any other yielding of economic benefits within the future. In simple words, a liability is something a person or company owes, usually an amount of money.
Liabilities are settled over time thru the switch of economic advantages along with money, items, or services. Liabilities can be contrasted with assets. Liabilities confer with things that you owe or have borrowed; assets are things which you own or are owed by somemone.
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Answer:
True
Explanation:
The statement is true because according to dividend growth method the price of the given preferred stock is $81.25.
Formula to calculate the prce of share using Dividend growth method is
Price of share = D0 / (Rate of return - Growth rate)
In case of preferred stock a stable dividend is paid and there is no growth in the dividend payment.
so
Price of share = D0 / (Rate of return - 0)
Price of share = D0 / Rate of return
Share price = $6.5 / 0.08
Share Price = $81.25
Answer:
(a) Private saving = Y-T-C
Private saving = 5000-1000-250-0.75(5000-1000)
Private saving = 750
Public saving = T - G
Public saving = 1000-1000
Public saving = 0
National saving = S = private saving+ public saving
National saving = 750
(B) Equilibrium interest rate = S + I
750 = 1000 - 50r
-50r = 750 - 1000
-50r = -250
50r = 250
r = 250/50
r = 5%
(c) Private saving is unchanged
Public saving = 1000 - 1250
Public saving = - 250
(d) The new equilibrium interest rate
750 (-250) = 1000-50r
500 = 1000 - 50r
- 50r = 500 - 1000
- 50r = -500
-50r = 500
r = 500/50
r = 10%
Answer:
The forecasted demand for the week of October 12 using a 3-week moving average is 376,710
Explanation:
a) Data
21-Sep 383,383
28-Sep 368,368
5-Oct 378,378
Total 1,130,129
Average = 1,130,129/3 = 376,710
b) To calculate the moving average, the quantities for three weeks' demand are added and divided by 3. This shows that the average demand for type A blood at the Damascus Hospital will be 376,710, going by the figures provided. If the correct figures should have been 383, 368, and 378, the average would have equal to 376 pints.
Answer:
The difference between the commissions charged by Full service brokers , Discount brokers and Online brokers are is about 60% higher for Full service Brokers
Explanation:
The difference between the commissions charged by Full service brokers , Discount brokers and Online brokers are is about 60% higher for Full service Brokers
Full service brokers perform a lot of services like providing investment advice and analyzing the market on behalf of the investor therefore commissions charged by full service broker is usually higher