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n200080 [17]
3 years ago
15

The most used instrument the federal reserve uses for controlling week to week changes in the money supply is

Business
1 answer:
olganol [36]3 years ago
7 0

Open market Operations- Gradpoint

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What gives rise to the problem of scarcity​
dem82 [27]

Answer:

Explanation:

Often scarcity is caused by a combination of demand and supply induced effects. A rise in demand, e.g. due to rising population causes overcrowding and population migration to other fragile ecological areas

5 0
2 years ago
In the equation Y = C + I + G + NX, Question 4 options: Y represents the economy’s total expenditure. C represents household exp
Zolol [24]

Answer:

Y represents the economy’s total expenditure

Explanation:

The equation Y = C + I + G + NX represents the expenditure approach to calculating GDP.

Y - economy’s total expenditure

C - household expenditures on services and goods

I - investment by firms

G - Government Spending

NX - Net Export

The variables can either be positive or negative .

I hope my answer helps you

7 0
3 years ago
Harbour View Company common stock has a $30 par value and is currently selling for $65. Industry analysts are predicting dividen
madam [21]

Answer:

The expected rate of return on this stock is 10.31%

Explanation:

The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,

P0 = D0 * (1+g) / (r - g)

Plugging in the values,

65 = 1.7 * (1+0.075) / (r - 0.075)

65 * (r - 0.075) = 1.8275

65r - 4.875 = 1.8275

65r = 1.8275 + 4.875

r= 6.7025 / 65

r = 10.31% or 0.1031

4 0
3 years ago
7. Total Cost for Savings Piggy bank with cash Dean is planning to purchase a new Nissan Altima which costs $26,865. He has save
son4ous [18]

Answer:

The monthly deposit is calculated using PMT function :

rate = 1.2%/2 (converting annual rate into monthly rate)

nper = 12 * 5 (5 years of deposits with 12 monthly deposits each year)

pv = -3200 (Amount put into account now. This is entered with a negative sign because it is a cash outflow)

fv = 26865 (Required value of account after 5 years)

PMT is calculated to be $379.70.

The monthly deposit is  $379.70.

7 0
2 years ago
You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n
Anastasy [175]

Answer:

$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

H = \frac{C_u - C_d}{uS - dS}

Where,

Cu = uS - X

= 120 - 100

= $20

H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

Check for oresent value of the portfolio:

Present value = \frac{80}{1 + 0.10} = 72.73

Value = exercise price - value of option

$72.73 = $100 - 2C

Find call option, C

C = \frac{100 - 72.73}{2} = 13.64

Call option's value = $13.64

8 0
3 years ago
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