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3 years ago

In reference to auto insurance, what is gap coverage

2 answers:

6 0

GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc.).

marysya [2.9K]3 years ago

6 0

GAP coverage is the differation between the cash value of the vehicle and the amount still owed for purchasing the car on a loan.

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How much potential money could be created from a new deposit of $2,000 and with a reserve ratio of 10%? How would it affect the

Ghella [55]

Answer:

To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.

Given:

New deposits= $2000, Reserve ratio= 10 percent

To calculate the money multiplier= 1/10%= 1/0.1= 10

To calculate the money that was created we multiply the multiplier by the new deposits.

Therefore: 10*2000= $20,000

To calculate the amount created when the reserve ratio is 5%

To calculate the money multiplier= 1/5%= 1/0.05= 20

Therefore the money created will be 20*2000= $40,000

Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.

Explanation:

To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.

Given:

New deposits= $2000, Reserve ratio= 10 percent

To calculate the money multiplier= 1/10%= 1/0.1= 10

To calculate the money that was created we multiply the multiplier by the new deposits.

Therefore: 10*2000= $20,000

To calculate the amount created when the reserve ratio is 5%

To calculate the money multiplier= 1/5%= 1/0.05= 20

Therefore the money created will be 20*2000= $40,000

Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.

7 0

3 years ago

Stocks 1 and 2 are selling for $100 and $125, respectively. You own 200 shares of stock 1 and 100 shares of stock 2. The weekly

dezoksy [38]

Answer: covariance matrix is

(0.00090 0.00042)

(0.00042 0.00160)

Mean of weekly return = 0.00119

Standard deviation = 0.0279

VaR(0.05) = $1450.73

Explanation:

> S1 = 200*100

> S2 = 100*125

> w1 = S1/(S1+S2)

> w2 = 1 - w1

> w = c(w1,w2)

> means = c(0.001, 0.0015)

> sd = c(0.03, 0.04)

> rho = 0.35

> multiply = w %*%

means> round(mutiply by 5)=0.00119

> cov = matrix(c(sd^2, sd[1]*sd[2]*rho,sd[1]*sd[2]*rho,sd[2]^2),nrow=2) = 0.00090, 0.00042, 0.00042, 0.00160

> sdp = sqrt( w %*% cov %*% w )> round(sdp,4)=0.0279

> VaR = -(S1+S2)*(mup+sdp*qnorm(.05))

=1450.73

6 0

4 years ago

a company budgets production of 15,000 solar panels in july. each unit requires 4 hours of direct labor at a rate of $20 per hou

Mekhanik [1.2K]

The Labor cost = Units Produced * Direct Labor hours per Unit * Direct Labor rate per Hour is <u>$ 1,200,000.</u>

= 15,000 * 4 * $20

= $ 1,200,000

Answer: $ 1,200,000

Production is the process of combining various tangible and intangible inputs (plans, knowledge) to produce things for consumption (outputs). It is the act of creating output, goods, or services that are of value and contribute to an individual's benefit.

An example of production is the manufacture of automobiles. A car is made up of parts. For example, rubber tires are added to a metal body to create a seat before the car leaves the assembly line. “Production is the organized activity of transforming resources into final products in the form of goods and services. The goal of production is to meet the demand for such transformed resources.

Learn more about production here:

brainly.com/question/16755022

#SPJ4

5 0

1 year ago

Enviro Company issues 10.50%, 10-year bonds with a par value of $430,000 and semiannual interest payments. On the issue date, th

alexandr1967 [171]

Answer:

549,862.5

$331,637.5

$16,581.87

Explanation:

Cash proceeds = Par Value of the bond x Price ratio to par value

Cash proceeds = $430,000 x 127.875%

Cash proceeds = $549,862.5

Bond Interest expense = Total Coupon payment - Premium on bond

Bond Interest expense = ( $430,000 x 10.50% x 10 ) - ( $549,862.5 - $430,000 )

Bond Interest expense = $451,500 - $119,862.5

Bond Interest expense = $331,637.5

Bond Interest expense = Coupon Payment - Premium on Bond amortization

Bond Interest expense = ( $430,000 x 10.5% x 6/12 ) - ( ( $549,862.5 - $430,000 ) / ( 10 x 2 ) )

Bond Interest expense = $22,575 - $5,993.13

Bond Interest expense = $16,581.87

8 0

3 years ago

Which of the following is NOT a way that the Fed controls the money supply?

Grace [21]

Answer:

A-Changing federal income tax rates

Explanation:

The Fed controls the money supply using monetary policy tools. Monetary policy is either expansionary or contractionary. The Fed chooses which policies to apply depending on the prevailing economic conditions.

Monetary policy tools available to the Fed include reserve requirements, interest on reserves, open-market operations, discount rates, and the federal fund rate.

The Fed does not set the federal income tax rates. Taxes are part of the fiscal policy applied by the executive arm of government. The government alters taxation to achieve desired macroeconomics objectives.

7 0

3 years ago

In reference to auto insurance, what is gap coverage​

In reference to auto insurance, what is gap coverage