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natali 33 [55]
3 years ago
10

The central bank buys $1,000 of government securities only from commercial banks. The maximum change in excess reserves, banking

system loans, and the total money supply will be__________.
Business
1 answer:
Katen [24]3 years ago
7 0

Answer:

Explanation:

Excess reserves would rise by $1000 and money supply would also rise by the same amount. however the effect on banking system loans would be according to the interest rate prevailing in the market at that time and furthermore, since banking system can create credit money based on excess reserves its effect on banking system will be measure taking into account all these factors

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​(Cost of​ debt) Belton Distribution Company is issuing a ​$1 comma 000 par value bond that pays 8.9 percent annual interest and
ioda

Answer:

After tax cost of debt is 7.69%

Explanation:

The after tax cost of debt can be computed by first of all determining the pre-tax cost of debt .

The pre-tax of debt is the yield to maturity computed using the rate formula in excel as follows:

=rate(nper,pmt.-pv,fv)

nper is the number of times the bond would pay coupon interest over the entire bond life ,which is 15 years multiplied by 2=30

pmt is the semi-annual interest which is $1000*8.9%/2=$44.5

pv is the current price of the bond at $962

fv is the face value of the bond at $1000

=rate(30,44.5,-962,1000)=4.69%

this is the semi-annul yield ,annual yield is 9.38%

The 9.38% is the pretax

after tax cost of debt=9.38%*(1-0.18)=7.69%

0.18 is the 18% tax rate

5 0
3 years ago
What is ethical behavior?
iren [92.7K]

Answer:

Ethical behavior includes honesty, integrity, fairness and a variety of other positive traits. Those who have others' interests in mind when they make decisions are displaying ethical behavior. In the workplace, there might be a standard for ethics set throughout the company.

Explanation:

3 0
3 years ago
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 12% and 16%,
monitta

Answer:

Alpha for A is 1.40%; Alpha for B is -0.2%.

Explanation:

First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.

Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;

Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;

Second, we compute the alphas for the two portfolios:

Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;

Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.

8 0
2 years ago
A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.
atroni [7]
That statement is true, an LLC can indeed <span>held liable for any loss or injury caused by the wrongful acts or omissions of its members.
The assets that owned by the members couldn't be held accountable in case there is a loss in the company, but in case of criminal activities, this thing could be overlooked.</span>
5 0
3 years ago
Ben sold his townhome on March 12. The property is subject to an HOA fee of $355 per month, which Ben prepaid for the month of M
Dvinal [7]

Answer:

$213

Explanation:

For computing the owed amount, first we have to compute the daily rate per day which is shown below:

= HOA fee ÷ number of days in a month

= $355 ÷ 30 days

= 11.83 per day

We know that the number of days in a month is 30 days and the townhome is sold on March 12, so the remaining days would be 18 days ( 30 days - 12 days of march month)

Now the owed amount would be

= Remaining days × per day rate

= 18 days × 11.83

= $213

8 0
3 years ago
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