Based on the provisions of the swap, Party A will pay $6,000 and receive $8,000.
<h3>How much will Party A pay?</h3>
Party A will pay the total return of 6% on the equity index capital:
= 6% x 100,000
= $6,000
<h3>How much will Party A receive?</h3>
Party A is to receive the rate of LIBOR + 3%. LIBOR is 5% so Party A will receive:
= 5% + 3%
= 8%
Total return is:
= 8% x 100,000
= $8,000
In conclusion, Party A will pay $6,000 and receive $8,000.
Find out more on LIBOR at brainly.com/question/26033099.
Answer:
True
Explanation:
When a manager discovers that data in his organization is compromised and unreliable, <u>he should not use the reports generated from such data while making decisions</u>, as they are most likely inaccurate. Such reports will affect the quality of decisions made and may do more harm than good to the organization.
Answer and Explanation:
a. In case when the new bills are kept by the people so the supply of money would be increase by a very similar amount as it was dropped off the plane. That's because the banking is not in the image, so there is no impact on the money multiplier.
b. If the amount is deposited in the bank, the cash supply would rise with the money multiplier being taken into account. Money Multiplier = Deposited currency / reserve ratio. The overall supply of money that will raise be 1 billion / 0.1.
c.Again, if a 100% reserve banking is exercised by the bank, so the boosted money supply would be the same value as it has been deposited.
d. If half of the value is held by the public and half of the value is deposited with the bank at 10% of the reserves, the supply of money rises by half of the amount which is held by the public in addition of half of the value / reserve ratio that is 10%.
Extra (unbudgeted) income left at the end of the month should be A) Saved for emergencies. Saving your extra money that you have not spent should be placed in a savings account and can help you later on in the future and provide for emergency funds if needed.
The answer is: A
