If the person created it or is in the family then yes
Answer:
correct option is b. $36
Explanation:
given data
bought = $1,000 par convertible
convertible into common = $32 per share
bond market price increases = 12.5%
solution
we know that conversion ratio is fixed when the convertible security are issued and it does not change
we have bond is issued with a conversion price = $32
so as per each bond converting conversion ratio will be
conversion ratio =
= 31.25 : 1
so by every bond which is converted , then receives = 31.25 share
so now bond price will be = $1125
parity price of the stock will as =
parity price of the stock = $36
correct option is b. $36
Answer:
d. directly increase by $2 and the money-creating potential of the commercial banking system will increase by $6
Explanation:
Note: The organized table of the question is attached as picture below
Total increase in money supply = (1/Reserve ratio)*2
Total increase in money supply = (1 / 0.25) * 2
Total increase in money supply = 4 * 2
Total increase in money supply = 8.
Out of which 2 is directly increased because fed deposits 2 into checking deposits and 6 is indirectly increased.
Answer:
c. Discretionary
Explanation:
The discretionary policy is the policy that depends upon the judgement of the people who made the policy. It also deals in the decision making with respect to the monetary and fiscal policy
So here in the given situation, it is mentioned at the time of taking the action by the federal government with respect to change in the taxes and the spending in order to stimulate the economy
So this situation represents the discretionary policy
therefore the option c is correct