Answer:
Answer is D. monthly living expenses (rent or mortgage, property tax, mortgage insurance, minimum credit card payments, and monthly loan payments)
Explanation:
Edge
Answer:
PV= $8,447
Explanation:
Giving the following information:
Future value= $13,000
Number of months= 9*12= 108
Interest rate= 0.4/100= 0.004 compounded montlhy
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 13,000/(1.004^108)
PV= $8,447
Answer:
529
Explanation:
A 529 plan is a plan to encourage savings for future education expenses. The money saved in a 529 plan is not subject to taxation as long as it will be used for education purposes.
Parents, grandparents, or guardians can open 529 savings account for a child, who will be named as the beneficiary. The contributor of funds to the account may be eligible for a state tax deduction for contributing to a 529 plan. The gains on the accounts are exempt from tax if they are to be used on education expenses.
If a shopkeeper starts to sell the new football, their weekly margins would be:
300 x 40 = $12,000
However, the sales of the lower cost footballs will decrease by:
100 x 20 = $2,000 every week
Hence, the total margin we can generate by selling every week by selling the new footballs is:
12,000-2,000 = $10,000
This means the shopkeeper should actually start selling new footballs since their shop will become more profitable
Fed can achieve its goals using the given tools as shown below.
<h3>
What is money supply?</h3>
- The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
- There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
- A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
- Money supply data is recorded and released, typically by a government agency or the country's central bank.
- Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.
In the given situation, Fed can achieve its goals using the given tools:
- Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
- Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
- Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.
Therefore, Fed can achieve its goals using the given tools as shown.
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The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:
a. change the reserve req.
b. change the discount rate.
c. use open market operations.
