Answer: D. No insurance protection is offered on customer municipal accounts maintained at bank broker-dealers
Explanation:
Broker-Dealer are required to register their customers for insurance under the Securities Investor Protection Corporation (SIPC).
Broker-Dealers who however handle only tax-exempt securities such as municipal bonds are not required to be registered under the SIPC.
As this bank handles only municipal securities, they is not required to be registered under the SIPC which means that no insurance protection is offered on customer municipal accounts maintained by them.
Answer:
inflation rate= 3.8%
Explanation:
Giving the following information:
Nominal return= 11.1 percent
Real return= 7.3 percent
<u>The real return on investments is the difference between the nominal return and the inflation rate.</u>
Real return= nominal return - inflation rate
inflation rate= nominal return - real return
inflation rate= 11.1 - 7.3
inflation rate= 3.8%
Answer:
the amount of revenue recorded for the first year is $612
Explanation:
The computation of the amount of revenue recorded for the first year is shown below:
= Amount received × given months ÷ total number of months
= $2,448 × 9 months ÷ 36 months
= $612
The 9 months are considered from April 1 To December 31
hence, the amount of revenue recorded for the first year is $612
Answer:
Explanation:
Formula to be used is Future value of annuity, FVA = Annuity*{[(1+i)^n -1}/i;
i - interest rate; in this case i=5%
n - number of years; in this case n=10
Annuity = 12*80 =960, the yearly amount reduced from spending
So FVA = 960*{[(1+0.05)^10 - 1]}/0.05 = 960*0.62889/0.05 = 960*12.5778 =
= 12,074.68
So the future value of these savings is 12,074.68
Answer:
Option 3
Explanation:
Earnings & profits (E&P) is the measure of a corporation’s economic ability to pay dividends to its shareholders. An up-to-date E&P calculation is important for many corporate transactions, including determining whether a distribution to shareholders is a taxable dividend.
The E&P allocated to Andrew's distribution
= 160,000 * 150,000/(350,000+150,000)
= 160,000 * 150,000/500,000
= 48,000
Option C
