Answer:
$8,780
Explanation:
Checkable deposits = $23,000
Reserve ratio = 14%
Required reserves = $23,000*14% = $3,220
Outstanding loans = $11,000
So, the additional loans that a bank may loan out is $8,780 ($23,000 - $3,220 - $11,000).
The correct answer for the given question above would be option C. The situation in which you would opt for a car lease is when you like to change cars frequently without the hassles of selling and trading them. Car lease is like "renting" a car.
Answer: A;B
Explanation:
<em>Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio </em><em><u>A</u></em><em> and a long position in portfolio </em><em><u>B.</u></em>
You should take a short position in the Portfolio with a lower risk premium and a long position on the Portfolio with a higher risk premium.
Using the single factor APT, the formula for risk premium can be derived from;
E(r) = Rf + beta (Risk premium on factor)
<u>Portfolio A</u>
19% = 11% + 1.7 * Risk premium
1.7 * risk premium = 8%
Risk Premium = 4.7%
<u>Portfolio B</u>
15% = 11% + 0.6 * RP
0.6 * RP = 4%
RP = 6.67%
Portfolio A Risk premium is lower so it should be <u>shorted.</u>
Portfolio B Risk premium is higher so it should taken a <u>long position</u> in.
The letter of transmittal and the statistical section are classified as Comprehensive Annual Financial Report (CAFR).
These are not included in the basic financial statement and required supplementary schedule.
CAFR comprises the financial report of any state, municipality or government entity.
Effect 1: Your money will plummet down
Effect 2: you won't have much to invest to help you get back economically
Effect 3: Your business with foreclose
Effect 4: Your house bills won't be paid because your business was closed.