The answer to the question above is "To maintain its liquidity if customers make demand whether its withdrawal or saving" based on the reserves meaning. A central bank holds the commercial banks excess of capital to maintain their liquidity. A bank will always have the liquidity risk to its business. This reserve is made to assure banks' liquidity.
Answer:
will improve the profit margins of firms and thereby induce them to expand output in the short run.
Answer:
Management by exception
Explanation:
This is a practice of examining the financial as well as operational results of a business and bringing to management only those differences that show a significant difference between the budgeted and actual amounts. This allows managers to focus on the highly important variances that can affect the growth and profitability of a company significantly. This concept, can however be fine-tuned where small variances are shown but to low-level managers whilst the senior managers will look at the large variances.
Answer:
current price = $1191.79
Explanation:
given data
time t = 15 year
annual coupon bonds rate = = 7.5 %
par value = $1000
interest rate = 5.5%
maturity time = 14 year
to find out
current price of the bonds
solution
we get here first annual coupon rate = 7.5% of 1000
annual coupon rate C = $75
so now we get current price of bond
current price of the bonds = 
.................1
put here value
current price = 
current price = 
solve it we get
current price = $1191.79
