A) 2,679.45
B) 50,909.55
C) 1,071,780
Explanation:
The bank will keep 5% of the deposit:
53,589 x 5% = 2,679.45
Then, it will have in excess the remainder:
53,589 - 2,679.45 = 50,909.55
This amount can be used for another.
This makes a hypothetical loop. The borrower can also deposit and creating the chance or another loan and so on. The cycle repeats indefinitely
The maximum amount of new money can be determinate as follow:
53,589 / 0.05 = 1,071,780
There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.
<h3>Currency option hedges</h3>
- Currency option hedges are known to be tools that are used in international business.
An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.
The American importer has therefore made an hedge by buing currency options on the Chinese currency.
Learn more about trade from
brainly.com/question/4957225
Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
Answer:
The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.
Explanation:
Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:
Firstly, these firms can decide to set their prices to be the same as the prices of higher-cost competitors.
Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.
Answer:
use socratic its in the app store
Explanation:
