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:
Preference dividend = $2 x 100,000 shares x 2 years
Preference dividend = $400,000
The dividend paid to common stockholders = $600,000 - $400,000
= $200,000
Explanation:
Dividends paid on preference shares are cumulative in nature because preference shares are fixed income securities. The dividends not paid last year would be paid this year. This is the rationale behind the multiplication of preference dividend by 2 years.
The dividend paid to common stockholders is the difference between the total dividend and dividend paid to preferred stockholders.
Answer:
The correct answer is c. human capital conveys positive externalities.
Explanation:
Externalities are defined as consumption, production and investment decisions made by individuals, households and companies and that affect third parties that do not participate directly in those transactions. Sometimes those indirect effects are tiny. But when they grow up, they can be problematic; That is what economists call "externalities." Externalities are one of the main reasons that lead governments to intervene in the economy.
Positive externalities: In this case, it is about the difference between private and social benefits. For example, research and development activities are widely considered as generating positive effects that transcend the producer (usually the company that finances them). The reason is that research and development enrich general knowledge, which contributes to other discoveries and advances. However, the profitability perceived by a company that sells products based on its own research and development activities does not usually reflect the profitability perceived by its indirect beneficiaries. When externalities are positive, private profitability is lower than social profitability.
One of the disadvantages of dealing with a financial intermediary would be: <span> A financial intermediary shares risks.</span>
Answer:
a. the alternative punishments that are available
Explanation:
Alternative punishments generally tend to change the support patterns with more softline polling members opting for alternative punishments rather than death penalty.
