Answer:
$60,000
Explanation:
The computation of Money supply expand is shown below:-
Excess reserves = Actual - required
=$85,000 - (0.25 × $240,000)
=$85,000 - $60,000
= $15,000
Money supply expand = Excess reserves ÷ Reserve ratio percentage
= $15,000 ÷ 25%
= $60,000
Therefore for computing the money supply expand we simply deduct the reserve ratio percentage from excess reserves.
Answer:
organization and management
Answer:
$1,000
Explanation:
The computation of the expected value of the real cost of hedging payable is shown below:-
Real cost of hedging 1 = (€500,000 × $1.07 × (90 ÷ 360)) - (€500,000 × $1.02 × (90 ÷ 360))
= $133,750 - $127,500
= $6,250
Real cost of hedging 2 = (€500,000 × $1.07 × (90 ÷ 360)) - (€500,000 × $1.09 × (90 ÷ 360))
= $133,750 - $136,250
= -$2,500
Expected value of the real cost of hedging payable = (Real cost of hedging 1 × Spot rate Given Percentage) + (Real cost of hedging 2 × Given percentage)
= ($6,250 × 0.40) + (-$2,500 × 0.60)
= $2,500 - $1,500
= $1,000
