Answer: 88.89 or 89
Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.
Given the following ;
Portfolio value(p) = $20million
Portfolio Beta (b) = 1.2
Index price (i) = 1080
Multiplier = 250
Future value(A) = index price × multiplier
Future value(A) = 1080 × 250 = 270000
Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value
N = ($20,000,000×1.2)÷270000
N = 24000000 ÷×270000
N = 88.8888=88.89
N = 89 (NEAREST whole number)
You reply that "OMOs are the purchase and sale of government securities. To increase the money supply we will buy government securities which increases the amount of reserves in the banking system and fuels deposit expansion".
<u>Option: A</u>
<u>Explanation:</u>
The action of central bank to offer or take liquidity from or into a bank or a collection of banks in its exchange rate currencies is understood as an open market operation or OMO. The central bank is the only origin of such policy which may either purchase or sell the bonds of government on the open market or in what is now often the acceptable option, engage into a repo or protected lending agreement with a commercial bank: the central bank lend the monetary as a reserve over a given period of time and concurrently selects the qualified asset as security.
Here the Chair of the Federal Reserve Board explained OMO for the purpose of their use in the scenario of increasing money supply, by purchasing or selling the bonds or securities of public authorities to eligible bodies for the increment of assets in banking sector to drive the expansion of deposits.
Answer:
Which party to the exchange must pay boot to make the exchange work?
- Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.
How much boot must be paid?
- $90,000 - $77,500 = $12,500
Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
- Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500
Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
- Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
If a local government has plans to build a new transit station on a site where several homes are currently located and the residents would not want to move, then the fifth amendment can be used where it says that the government could take the land but the government should pay a fair enough price to the owners of the land. This part of the Fifth Amendment is called the Taking Clause where it stresses out the a private property should be not be taken for public without a just compensation. The people who made this clause are land property owners who has a certain degree of mistrust of the government power.
Answer:
$230,000
Explanation:
Given that,
Days sales outstanding, DSO = 23 days
Annual sales = $3,650,000
Assume that it uses a 365 day year
Accounts receivable = (Annual sales × Days sales outstanding) ÷ 365 days
= ($3,650,000 × 23) ÷ 365 days
= $83,950,000 ÷ 365 days
= $230,000
Therefore, the Baxley Brothers has $230,000 balance in its accounts receivable.
