Answer: Bank can lend an additional $1100.
Explanation:
Given that,
Bank's initial excess reserves = $800
Reserve ratio = 20%
New deposits = $1,000
Required reserves = 20% of 1000 = $200
So, the banks have to keep $200 in reserves and can lend rest $800.
As given in the question that bank lends $500 to molly and has an excess reserves of $800, so the bank can lend an additional $1100.
Answer: $897.03
Explanation:
You can use Excel to calculate this.
The bond is a semi-annual bond so you need to adjust the variable for this first.
Number of periods = 25 * 2 = 50 semi-annual periods
Coupon = 7.5% * 1,000 * 0.5 semi-annual adjustment = $37.50
Yield = 8.5% / 2 = 4.25%
Value to you = $897.03
A remedy at law is monetary damages
What explanation might an economist provide why some people smoke cigarettes when such behavior can lead to health consequences?
Some people likely smoke cigarettes because they overvalue the utility from current choices. Although these people know they are smoking cigarettes which can lead to cancer, the benefits they feel they are receiving from them are valued higher than the consequences they may receive.
Answer:
1. reduce
2. claim
3. premiums
just realized u already knew the answers lol....
