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antoniya [11.8K]
3 years ago
12

What does an exchange rate tell you?

Business
2 answers:
Olenka [21]3 years ago
6 0

It tells you: C. How much one unit of currency is worth when converted to another currency.

saw5 [17]3 years ago
4 0

Answer:

C. How much one unit of currency is worth when converted to another currency

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Assume that the reserve ratio is 20% and banks in the system are loaning out all their excess reserve. If people collectively ca
Alex17521 [72]

Answer:

C. decreased by $40 billion

Explanation:

For computing the lending ability, first we have to determine the money multiplier which is shown below:

We know that

Money multiplier = 1 ÷ reserve ratio

                            = 1 ÷ 20%

                            = 5

So, the total cash would be

= $10 billion × $5

= $50 million

Now the lending ability would be

=$50 billion × (1 - 20%)

= $50 billion × 0.80

= $40 billion

6 0
2 years ago
Define the following terms: a. Cost of debt b. Cost of equity c. After-tax WACC d. Equity beta e. Asset beta f. Pure-play compar
gtnhenbr [62]

Answer: The answers are explained below.

Explanation:

• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.

• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.

• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.

• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.

• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.

• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.

• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.

3 0
3 years ago
Read 2 more answers
The simple annual interest rate on a loan is 5%. what is the interest due on a loan of $3,500 after one year
zlopas [31]
The formula is
I=prt
I interest due ?
P principle 3500
R interest rate 0.05
T time 1 year
I=3,500×0.05×1
I=175
3 0
3 years ago
Read 2 more answers
Swifty Corporation's allowance for uncollectible accounts was $187500 at the end of 2017 and $180500 at the end of 2016. For the
Nostrana [21]

Answer:

The amount Swifty debited to the appropriate account in 2017 to write off actual bad debts: $25,800

Explanation:

Allowance for uncollectible accounts at the end of 2017 = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - The amount of write off actual bad debts.

The amount of write off actual bad debts = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - Allowance for uncollectible accounts at the end of 2017 = $180,500 + $32,800 - $187,500 = $25,800

5 0
3 years ago
The managed care plan that is allowed to contract directly with employers to provide health care services is the?
andreev551 [17]

The managed care plan that is allowed to contract directly with employers to provide health care services is the health insurance.

<h3>What is managed care plan?</h3>
  • Health insurance comes in the form of managed care programs. They have agreements with hospitals and medical centers to provide members with care at lower costs.
  • These suppliers make up the network of the plan. The policies of the network will determine how much of your care the plan will cover.
  • Among the several categories of managed health care programs are: maintenance of health organization (HMO) preferred supplier company (PPO) Service location (POS)
  • The availability of numerous in-network providers, low costs, the provision of credentialed treatment, lower prescription costs, and low cost are some of the most frequently cited advantages of managed care systems.

Learn more about managed care plan here:

brainly.com/question/12446980

#SPJ4

8 0
1 year ago
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