Answer:
A. At the top of the organization
Explanation: Top management of business Organisations includes the CEO/PRESIDENT, THE VICE PRESIDENT OR THE COO(THE CHIEF OPERATING OFFICER) etc they are known as the key strategists of all business Organisations, and Strategic perspective and view point should be emphasized at the top as that is the key responsibility of the top management.
Banks decide to hold more excess reserves.
Option - a
<u>Explanation:
</u>
The US currency flow is the entire physical cash that circulates throughout the world and the funds in checks and savings.
a. Excess reserves are reserves beyond the legal deposit holding requirements of banks. The rise in the deposit rate of banks decreases financial multipliers which allow the supply of money to decrease.
b. Cash for Christmas shopping is deducted from people's bank accounts::
The expanded currency holding would boost the deposit rate, increasing the liquidity multiplier and decrease the money supply.
c. The Fed is selling gold to public
Gold selling to the public have the same impact as open market bond purchases — it decreases the economic base and thus the money supply fall.
Answer:
The correct answer is both the compensation for inflation as well as the real rate of interest.
Explanation:
Nominal rate of interest is the one which is described as the rate of interest before taking or considering the inflation into the account. The nominal could also defined as to advertised or state the rate of interest on the loan, without considering the account of any fees or any interest which is compounding.
So, the nominal rate of interest is the one which involve or comprise of the compensation for inflation and the real interest rate of the interest.
Answer:
See below
Explanation:
It is to be noted that under IFR, inventories are carried at a lower of cost or net realizable value, which is $550,000 in this scenario.
Also, under the United states GAAP, inventories are carried at a lower of cost or market . Here, the replacement cost of $525,000 would be used because it is below NRV and its equal to the difference between NRV and normal profit margin.
Answer:
-5.14 for sam
-18.01% for dave
Explanation:
We first calculate for Sam
R = 7.3%
We have 2% increase
= 9.3%
We calculate for present value of coupon and present value at maturity using the formula for present value in the attachment
To get C
1000 x 0.073/2
= 36.5
time= 3 years x 2 times payment = 6
Ytm = rate = 9.3%/2 = 0.0465
Putting values into the formula
36.5[1-(1+0.0465)^-6/0.0465]
= 36.5(1-0.7613/0.0465)
36.5(0.2385/0.0465)
= 36.5 x 5.129
Present value of coupon = 187.20
We solve for maturity
M = 1000
T = 6 months
R = 0.0465
1000/(1+0.0465)⁶
= 1000/1.3135
Present value = 761.32
We add up the value of present value at maturity and that at coupon
761.32 + 187.20
= $948.52
Change in % = 948.52/1000 - 1
= -0.05148
= -5.14 for sam
We calculate for Dave
He has 20 years and payment is two times yearly
= 20x2 = 40
36.5 [1-(1+0.0465)^-40/0.0465]
Present value = 36.5 x 18.014
= 657.511
At maturity,
Present value = 1000/(1+0.0465)⁴⁰
= 1000/6.1598
= 162.34
We add up these present values
= 657.511+162.34 = $819.851
Change = 819.851/1000 -1
= -0.1801
= -18.01%
