Answer: After Tax Nominal Rate - 12.6%
After Tax Real Rate - 3.6%
Explanation:
<em>Real Rate of return is defined as the nominal interest rate less inflation. </em>
The After Tax Real Rate therefore caters for tax from the Nominal rate and then deducts Inflation.
The formula is,
= Nominal Rate( 1 - tax rate) - Inflation rate
= 14% ( 1 - 10% ) - 9%
= 14 ( 90% ) - 9
= 3.6%
The <em>Nominal Rate is simply the Real Rate plus Inflation</em>. The After tax real rate has already being found so the After Tax Nominal Rate is,
= 3.6 + 9
= 12.6%
Answer:
The remaining part of the question is:
Which statement is TRUE?
A. The registered representative needs no further licenses to sell managed accounts
B. The registered representative must pass either the Series 65 or Series 66 examination to sell managed accounts
C. The registered representative must post a surety bond prior to selling managed accounts
D. The registered representative is prohibited from selling managed accounts
<u>Correct Answer:</u>
B. The registered representative must pass either the Series 65 or Series 66 examination to sell managed accounts
.
Explanation:
Managed or wrap accounts are defined as "investment advisers" in most states. As such, the firm selling managed accounts must register as an investment adviser; and the individuals selling managed accounts for these firms must register as "investment adviser representatives" and pass either the Series 65 or Series 66 examination.
Answer:
d) All of above
Explanation:
A partnership agreement provides guidelines on how two or more partners will manage their partnership business. It is the contract that dictates each partner's roles, profit and loss sharing formula, and personal liability of each in case of insolvency.
In the absence of a partnership agreement, the law prescribes that partners share profits and losses equally. All partners assume equal rights to responsibilities and liabilities.
Answer: $25 billion
Explanation:
The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:
= Deposit into banking system * Money multiplier
Money multiplier = 1 / Required reserve ratio
= 1 / 20%
= 5
Checkable deposit increase:
= 5 billion * 5
= $25 billion
