Answer:
both blanks can be filled by <u>5%</u>
Explanation:
The quantity theory of money states that there is a proportional relationship between the money supply and the general level of prices. An increase in the money supply will increase the general level of prices in the same proportion (called inflation).
The Fisher equation measures the relationship between nominal and real interest rates. Real interest rate = nominal interest rate - inflation rate.
So if inflation increases, the nominal inflation rate will increase to keep the real interest rate the same.
Answer:
One of the main advantages of online banking is that you can access information about your account immediately and from anywhere. Before online accounts were available, you had to go to a bank or ATM on some specific cases if you wanted to carry out any type of transaction, e.g. pay a service or transfer money. Online accounts make it less likely for a person to go to a bank, e.g. in order to get a loan, I did it all online, I didn't even need to go to the bank.
Someone who is retiring has more experience on what to invest in than someone who is still getting used to knowing what to invest in
Answer:
10.52%
Explanation:
The computation of the annual financing cost is shown below:
First we have to calculate the interest cost that is shown below:
= $20,000 × 10% × 182 days ÷ 365 days
= $997.26
Now the used funds is
= $20,000 - $997.26
= $19,003
Now the annual financing cost is
= ($997 ÷ $19,003) × (365 days ÷ 182 days)
= 10.52%
We assume there are 365 days in a year
Answer:
Castle State Bank's equity multiplier is 2.2
Explanation:
Total Assets = $2,200
Total Liabilities and Equity = $2200
Net Loans = $1,200
Total Equity = $2,200 - $1,200 = $1,000
Equity multiplier = Total Assets / Total Shareholders Equity
Equity multiplier = 2,200 / $1,000
Equity multiplier = 2.2
Total Assets is equal to Total equity and Liabilities. Total equity and Liabilities includes the balance of Both equity and liabilities. Total equity is calculated by subtracting Total Loans from Total equity and Liabilities.
