Eeeee I need help siks djnakwidbdh
1 answer:
You might be interested in
Answer:
Option E (143) is the appropriate solution.
Explanation:
According to the question,
The modified duration will be:
=
=
=
The percentage change in price will be:
=
= (%)
Now,
The EMOD will be:
=
= ($)
Or,
The EMAC will be:
=
= ($)
Hence,
⇒
⇒
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.
