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4 years ago

A currency drain occurs when

Business

1 answer:

gogolik [260]4 years ago

5 0

Answer:

The correct answer is: non-bank public increases its holdings of currency outside the banking system.

Explanation:

A currency drain refers to the situation where there is an increase in currency held outside the banking system. When the public holds more money outside the banking system, it reduces the total reserves of the banks. The excess reserves get reduced as well.

The currency gets drained from the banking system, so banks can create less money. This causes a reduction in the money supply.

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You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return of 10.2 percent. Stock A has

Andrei [34K]

Answer:

Weight of Stock A is 55,88%

Explanation:

We know Weight Stock A + Weight Stock B =1 so, Stock B=1- Stock A

(Stock A*11.7) +(Stock B* 8.3)=10.2

(Stock A*11.7) +((1- Stock A)* 8.3)=10.2

(11.7 Stock A) +(8.3- 8.3 Stock A)=10.2

(11.7 Stock A) - 8.3 Stock A=10.2-8.3

3,4 Stock A=1,9

Stock A=1,9/3,4=0,5588 55,88%

6 0

3 years ago

You can be jailed up to six months and fined up to $1,000 if you _________________. A. are convicted of being a habitual truant

natka813 [3]

Answer:

Option B Dumping or Abandoning an animal on a highway.

Explanation:

The fine imposed on dumping or abandoning an animal on a highway unintentionally (negligent) will be $1,000 whereas a fine of $1,000 and jail up to six months will be for the person who intentionally dumbed or abandoned an animal on a highway. The durantion of jail punishment is subjected to the judgement of judge.

3 0

4 years ago

After visiting several automobile dealerships, Richard selects the car he wants. He likes its $11,500 price, but financing throu

WITCHER [35]

Answer:

The answers are:

A) total interest = p x r x t

where:

p = $9,200
r = 10%
t = 2 years

total interest = $9,200 x 10% x 2 = $1,840

B) the total cost of the car = down payment + principal + total interest

total cost = $2,300 + $9,200 + $1,840 = $13,340

C) monthly payment = (principal + total interest) / total number of payments

monthly payment = ($9,200 + $1,840) / (12 x 2) = $11,040 / 24 = $460

D) APR = (total payments x total interest) / [principal x (total payments +1)]

APR = (24 x $1,840) / ($9,200 x 25) = 0.192 or 19.2%

5 0

4 years ago

A developer is proposing to build and operate an 8 store strip mall. Each unit would rent for $3,500 per month. It is expected t

lys-0071 [83]

Answer:

Requirement A: CAP Rate is 12.5%

Requirement B: Capitalized Value of the Property is $1,884,960

Requirement C: Loan Amount is $1,413,720

Requirement D: Debt Service Coverage Ratio is 1.85

Requirement E: Loan per unit is $176,715 Per Unit

Explanation:

Requirement A: Find the CAP Rate

The CAP Rate will be calculated using the following formula:

CAP Rate = Annual Net Operating Income (NOI) (Step1) / Property Capitalized Value (Step2)

Here

Operating Income is $235,620 (Step1)

Property Capitalized Value (Step2)

Now, by putting values we have:

CAP Rate = $235,620 / $1,884,960 = 12.5%

Step1: Find Annual Net Operating Income (NOI)

As we know that:

Operating Income = Expected Revenue - Operating Expense

Here

Expected Revenue from 8 Strip Malls = Rent / Month * 12 Months * (1 - Vacancy Ratio) * 8 Strips Malls

= $3,500 * 12 * (1 - 15%) * 8

= $285,600

Operating Expenses = Expected Revenue * 17.5%

= $285,600 * 17.5% = $49,980

Now by putting value in the above Operating Income equation, we have:

Annual Operating Income = $285,600 - $49,980 = $235,620

Step2: Find Property Capitalized Value (It is also Requirement B)

Property Capitalized Value = Annual Operating Income / Minimum Accepted Rate of Return (MARR)

Here

Annual Operating Income is $235,620 from Step1

MARR is 12.5%

By putting values, we have:

Capitalized Value of the Property = $235,620 / 12.5% = $1,884,960

Requirement C. Find Loan Amount

It is given in the question that the Loan Amount is 75% of Property Capitalized Cost. This implies:

Loan Amount = $1,884,960 * 75% = $1,413,720

Requirement D. Debt Service Coverage Ratio

Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service for the Year

Here

Annual Net Operating Income is $235,620 from Step1

Total Debt Service for the Year $127,235 (See Step3 below)

By putting values, we have:

Debt Service Coverage Ratio = $235,620 / $127,235 = 1.85

Step3: Total Debt Service for the year

Total Debt Service for the year = Loan Amount * Debt Service Rate

Here

Loan Amount is $1,413,720

Debt Service Rate is 9%

By putting values, we have:

Total Debt Service for the year = $1,413,720 * 9% = $127,235

Requirement E. Find Loan Amount

We can find loan per unit by simply dividing the loan amount by number of strip mall. Here total number of strip mall are 8. This implies that:

Loan Per Unit = $1,413,720 / 8 Units = $176,715 Per Unit

3 0

3 years ago

Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be g

nalin [4]

Answer: Contingency planning

Explanation: In simple words, it refers to the planning for an upcoming event that may or may not occur in the future. This planning is usually done by organisation so that they can act accordingly if any problem in business operations occurs in future.

In the given case, even after having positive forecast, Donna is planning for future uncertainty such as unexpected stoppage on sales.

Thus we can conclude that this is the type of contingency planning.

4 0

3 years ago