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2 years ago

M1 includes more than just currency because

Business

1 answer:

MariettaO [177]2 years ago

6 0

Answer: Option (A) is correct.

Explanation:

Correct Option: Other assets can also be used to make transactions to buy goods and services.

M1 = Currency with public + check-able/Demand deposits + other deposits with RBI

It includes more than just currency with public because there are some other assets as well which are highly liquefied and helps people in buying goods and services.

Check able deposits is one of the component of M1, other than currency with public. People can withdraw these deposits at any point of time which people generally used make transactions for buying goods and services.

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Coates Inc. experienced the following events in 2014, in its first year of operation: (1) Received $20,000 cash from the issue o

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Answer:

Explanation:

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2 years ago

Ellen purchased a dishwasher, which cost $315 before the 9.22% sales tax. she used the machine an average of 10 times per week f

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Answer:

NOT anser B). $686.40

Explanation:

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2 years ago

Drag each label to the correct location on the table. Match the examples to the types of assets they represent.

ZanzabumX [31]

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2 years ago

How much should you pay for a share of stock that offers a constant growth rate of 13%, requires a 18% rate of return, and is ex

marin [14]

Answer:

$44.25

Explanation:

<u>procedure 1:</u>

we can determine the present value of the stock using the following formula:

present value = future value / (1 + constant growth rate)ⁿ

future value = $50
constant growth rate = 13%
n = 1

present value = $50 / (1 + 13%) = $50 / 1.13 = $44.25

<u>procedure 2 (optional):</u>

future value = future dividend / (required rate of return - constant growth rate)

$50 = future dividend / (18% - 13%)

future dividend = $50 x 5% = $2.50

now we must determine the dividend for the current year:

current dividend = future dividend / (1 + constant growth rate)

current dividend = $2.50 / (1 + 13%) = $2.50 / 1.13 = $2.21

now we apply the Gordon growth model:

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2 years ago

Total interest paid on a 30-year straight note was $230,000 during the term of the loan. The annual interest rate was 6.6%. What

dsp73

Answer:

$116,161.616

Explanation:

Given that,

Total interest paid = $230,000

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Total interest on loan = Loan amount × Interest rate × Time period

$230,000 = Loan amount × 6.6% × 30 years

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$=\frac{230,000}{0.066\times 30}$

$=\frac{230,000}{1.98}$

= $116,161.616

Therefore, the loan amount is $116,161.616.

3 0

2 years ago