Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
Explanation:
The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.
All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.
Money supply therefore remains the same.
Answer: $2,398.55
Explanation:
The deposit at the end of year one would have been compounded by 2 years at the end of year 3. The second year deposit would have compounded by 1 year and the third year deposit would not have compounded at all.
The future value at the end of 3 years is;
= (500 * ( 1 + 11%)²) + (750 * ( 1 + 11%)) + 950
= $2,398.55
<em>The question might not be the exact same but you can use this as a reference. </em>
Answer:
$1,049
Explanation:
Data given in the question
Par value = $1,000
Interest rate = 4.9%
Time period = 10 years
So, by considering the above information, the price paid to the bond holder is
= Par value + Par value × rate of interest
= $1,000 + $1,000 × 4.9%
= $1,000 + $49
= $1,049
Hence. the price paid to the bond holder is $1,049
Answer:
the correct answer is
a. identification of a potential market
