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Aleksandr-060686 [28]
3 years ago
6

2. Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, imagine that $400 currency is deposite

d into a checking account. Assuming maximum deposit creation, by how more does the money supply increase if the Fed lowers the required reserve ratio to 7%?

Business
1 answer:
Crank3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Yesterday, you entered into a futures contract to buy euro at $1.50/€. Your initial margin was 45% and your maintenance margin i
Marat540 [252]

Answer:

$1.1786

Explanation:

Given

Initial purchase price = $1.50

Initial margin = 45%

maintenance margin is 30%

Margin call price = InitiaL purchase price × [1 - InitiaL margin / 1- maintenance margin]

= $1.50 × [1-45% / 1-30%]

=$1.50 × [0.55/0.70]

=$1.1786

6 0
3 years ago
Read 2 more answers
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
QveST [7]

Answer:

Present Value= $180,000

Explanation:

Giving the following information:

The bequest will provide $9,000 in the first​ year and will grow by 5​% per​ year, forever.

Interest rate= 10%

To calculate the present value of this perpetual annuity with a growing rate, we need to use the following formula:

PV= Cf/ (i-g)

Cf= cash flow= 9,000

i= 0.10

g= 0.5

PV= 9,000/ (0.10 - 0.05)= $180,000

7 0
3 years ago
The founding fathers divided our system of government into three distinct branches. What are these branches and how did the foun
riadik2000 [5.3K]

Answer:

The US constitution partitions government into three unmistakable branches.These branches are:  

(an) Executive  

(b) Legislative  

(C) Judicial branches  

This idea is additionally called "partition of forces". Each branch is equivalent to the next i.e each branch is autonomous from the other, however every hold same position and yes the facts confirm that the establishing father legitimize each part of government as vital for a sound republic Because the establishing father assume a significant job to partition the framework into three branches.  

Governing rules: Each branch have its own duties and simultaneously, for the smooth running of the nation these three branches cooperate thus, that the privileges of residents are not overlooked and each resident treated equivalent to other and This is conceivable or done through checks and balances.A branch may utilize its forces so as to keep up a level of influence between these three branches.By this, nobody branch hold more force. each branch hod balanced governance over the other.  

INTERESTS OF MINORITY SHAREHOLDERS OVER MAJORITY SHAREHOLDERS:  

Significant piece of India's populace by and large comprises of minority part the interests of minorities are retained by the administration to more prominent degree , in practically all the areas, for example, training, modern, science and medicals, minorities are given significant significance . Numerous administration motivation are likewise embraced by the judicial,executive and council level of the legislature.  

Result: The ancestors separated the legislature into 3 kinds, in order to give equivalent rights all the interests of people at all levels. Such in detail is as of now clarified above in the above segment.

5 0
4 years ago
What is the purpose of the owner capital account in the closing process? a.Owner capital is used to verify that net income or lo
givi [52]

Answer:

d.Owner capital is where the period's net income or loss is transferred.

Explanation:

The owner capital account which is also known as 'retained earnings' is a balance sheet account where the organisation's profits / net income or losses are transferred. Net incomes will increase the owner capital account while losses will reduce the owner capital account.

Based on the above, option d is the correct answer.

5 0
3 years ago
The settlement option that provides for ongoing payments for a period of time is called
Aneli [31]

The settlement option that provides for ongoing payments for a period of time is called annuity. The annuity is a type of insurance contract in which they provide an individual an annual income for a long period of time such as an example of this is a pension.

7 0
3 years ago
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