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USPshnik [31]
3 years ago
9

For each of the following monetary policies, calculate the change in money supply.1. The Fed purchases $500 worth of bonds from

banks and the required reserve ratio is 10%.2. The Fed sells $800 worth of bonds to banks and the required reserve ratio is 20%.3. The Fed purchases $3000 worth of bonds from banks and the required reserve ratio is 50%.4. The Fed makes $500 discount loans to banks. The required reserve ratio is 10%.5. The Fed lowers the required reserve ratio from 10% to 2%. The amount of bank reserves is $5 million.
Business
1 answer:
Keith_Richards [23]3 years ago
6 0

Answer:

1. change in money supply= 500*10=$5000

2. change in money supply = 800*5 = $4000

3. change in money supply = 3000* 2= $6000

4. change in money supply = 500* 10 = $5000

5. change in money supply = 5,000,000*50 =$250,000,000

Explanation:

Change in money supply=  change in reserves* money multiplier

money multiplier = 1/ reserve ratio

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You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years
Radda [10]

Answer:

21%

Explanation:

Given that,

Cost of share = $21.70

Expect to pay dividend in year 1 = $1.00

Expect to pay dividend in year 2 = $1.16

Expect to pay dividend in year 3 = $1.3456

Expected selling price of share at the end of year 3 = $28.15

Growth rate in Dividends:

= [(Dividend in Year 2 - Dividend in Year 1) ÷ Dividend in Year 1] × 100

= [($1.16 - $1.00) ÷ $1.00] × 100

= 0.16 × 100

= 16%

Expected dividend yield :

= (Dividend in year 1 ÷ Cost of Share ) × 100

= (1.00 ÷ $21.70) × 100

= 0.05 × 100

= 5%

Stock's expected total rate of return:

=  Expected Dividend Yield + Growth rate in Dividends

= 5% + 16%

= 21%

8 0
3 years ago
What is the total cost of a 15-year mortgage if the monthly payment is $1718.70? A. $447,585.60 B.$281.683.80 C. $309, 366.00 D.
Vaselesa [24]

Answer:

Total Cost = $309,366

Explanation:

Given:

Number of year = 15 year

Monthly payment = $1,718.70

Find:

Total Cost

Computation:

Total Cost = Number of year x 12 months x Monthly payment

Total Cost = 15 x 12 x 1,718.70

Total Cost = $309,366

3 0
3 years ago
Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key deci
Ksivusya [100]

Answer: Sensitive analysis

Explanation:

Sensitivity analysis this is a financial standard that is used to regulate how target variables can be affected based on changes in other variables which known as input variables. This is also known as what-if or simulation analysis. It is a way used in predicting an outcome of a decision under a known range of variables.

4 0
3 years ago
Functions of the economic commission for Africa.​
timofeeve [1]

Answer:

The main functions of the ECA include the study of problems of the economic and social development of the African countries, the promotion of the economic development of the African states, and the strengthening of their economic relations both with one another and with other countries.

4 0
3 years ago
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If Country A is an agricultural country and Country B has many cities and factories, it would make sense for
AfilCa [17]

Answer:

Country A to specialize in growing com while Country B specializes in making cars.

Explanation:

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