Answer: a)$18,000 and b)$200,000
Explanation:
a) Deposit = $20,000
Reserve=10%
=10%x20,000 =$2,000
Loan - Deposit = 20,000-2,000 = 18,000
b) 1/Req. Rate Return* loan amount
20,000/10% =$200,000
This encourages spending so there is a shift up and to the right.
As the government increases spending, demand for loans increases and therefore increases the interest rates.
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Answer: 7.43%
Explanation:
The yield to maturity simply refers to the total return that is expected on a bond as long as the bond is held till it matures.
In this case, since the investor is indifferent between this municipal bond and an otherwise identical taxable corporate bond, the yield to maturity of the corporate bond will be:
4.83% = Corporate bond YTM × ( 1- 35%)
4.83% = Corporate bond YTM × 65%
Corporate bond YTM = 4.83% / 65%
Corporate bond YTM = 0.0483/0.65
Corporate bond YTM = 7.43%
The yield to maturity of the corporate bond is 7.43%
Bench trial is when you pay for the consequences and jury trial is when your speaking of the situation and they would have to choose a consequence
Answer:
The correct answer is 4
Explanation:
Universal life insurance is the insurance which is an element of the investment savings and the low premiums such as the term life insurance. These policies have a option of the flexible premium and however, some of the policies require fixed premiums or the single premium.
So, the ideal prospect of the policy states that the premium payments are deposited into the General account of the life insurance company not in the separate account. These policy control the investment not the policyholders.
When there is a surplus of goods and the government does not intervene to stabilize prices, the prices will keep dropping in an effort to sell the good off.
According to the Law of Supply and demand:
- prices drop when the supply of a good is more than the demand to encourage people to buy more of the goods.
This will be done in an effort to at least recuperate some of the costs of production instead of suffering a total loss when people don't buy the goods as is the case with these holiday toys.
We can therefore conclude that if the government does not intervene to either subsidize the price of these toys or control their price, the prices will keep falling to entice people to buy the goods.
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