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serious [3.7K]
3 years ago
14

The currency deposit ratio is c 0.10. The reserve requirement rr, is 0.08. the excess reserve ratio ,e is 0.05. what is the size

of the money multiplier?
A. 4.70.B. 4.75.C. 4.00.D. 4.78.
Business
1 answer:
Tomtit [17]3 years ago
7 0

Answer: 4.78

Explanation: Money multiplier could be explained as the maximum amount of commercial bank money that can be created given a certain amount of money in the monetary base under a fractional-reserve banking system. I. Other words, the ratio or statistic of commercial bank money you the central bank money.

In this question, money multiplier is calculated using the relation:

M = (1 + c) ÷ (rr + e + c)

Where:

c = currency deposit ratio

rr = reserve requirement

e = excess reserve ratio

M = money multiplier

M = (1+0.1) / (0.08+0.05+0.1)

M = 1.1 / 0.23

M = 4.78

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Marian Company's net income is $200,000; between January 1 and June 30, the company had 450,000 shares outstanding. On July 1, t
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Answer:

$.5

Explanation:

Net Income     $200,000

Shares outstanding from Jan 1-June 30  450,000*6/12=225,000

Shares outstanding from Jul 1-December 31  (450,000-100,000)*6/12=175,000

Weighted average shares outstanding                   (225,000+175,000)=400,000

Basic EPS=Net income-preferred stocks dividend (if any)/Weighted Average shares outstanding=$200,000/400,000=$.5

5 0
3 years ago
5. Harris Corporation has $250 million in cash and 100 million shares outstanding, Suppose the corporate tax is 35%, and investo
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Answer:

$0.875

Explanation:

The computation of the stock price that changes upon the announcement is shown below:

As it given that

The corporate tax is 35%

So there is an effective disadvantage i.e. retention

Also, the stock price would be decline by 35% of cash

i.e.

= 35% × $250 million ÷ 100 million outstanding

= $0.875

Hence, the stock price is $0.875

3 0
3 years ago
Why is it important that ""links live forever"" when designing an internet-based electronic commerce system?
Elenna [48]

"Links live forever" is very important when designing commercial internet based electronic sites. Link live forever has the following 4 important reasons:

  1. Customer bookmarks
  2. Links from other sites
  3. Search engine referrals
  4. Old content adds value

When designing an electronic internet-based site, it is important that all the links live forever. The reasons are:

  1. Customer bookmarks: When the website is live, customers who are interested in your specific product may bookmark that page for later use. For example, customers bookmark a link that navigates them later to that page. If the link is live, then customers visit that link/page again without any hassles.  
  2. Links for other sites: Sometimes other sites link your link (website/page/product page) to some pages where they want to navigate the customer/visitor to their site. If the link is live, then customers/visitors easily visit your website/page/product page.
  3. Search Engine Referrals: Search engines rank the site on the content you are providing on the given link. When a search engine refers the visitor to your website, if it is life then the visitor will be served otherwise a dead link will disappoint both visitor and search engine.  
  4. Old content adds value: Keeping the link of old content live adds value to your website and adds value for your user. Keeping links of old content live serves the visitors best because their interest may be renewed, searching about historical events, and searching for older information.  

So, it is very important to keep the links live forever of the commercial internet-based websites.

You can learn more about commercial website at brainly.com/question/18119179

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5 0
2 years ago
Which statement best describes the performance of mutual funds over the last 4 or 5 decades? A. While some mutual fund managers
madam [21]

The correct option is (d).

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  • Each variety has unique characteristics, dangers, and benefits.
  • The rate of return is subtracted from the risk-free rate of return for the investment, and the result is divided by the return on investment's standard deviation.
  • The Sharpe ratio tells investors if an investment's results are the result of prudent investing decisions or an outcome with excessive risk.

Learn more about mutual funds performance brainly.com/question/9000802

#SPJ4

7 0
2 years ago
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