Answer:
(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.
Antonia deposits $2,000 in First National Bank.
Then First national Bank lends $1,600 to client X that uses the money to purchase something. The seller of that something deposits the money In Second Federal Bank.
Second Federal Bank then lends $1,280 to client Y that decides to use that money to pay his rent. Client Y's landlord then deposits the money in Third State Bank.
Third State Bank will then lend $1,024 to client Z...
(b) How much money will be generated in this banking system?
total money generated in the banking system = Antonia's deposit x money multiplier
money multiplier = 1 / required reserve rate = 1 / 0.2 = 5
so the total money generated = $2,000 x 5 = $10,000
Answer:
4.83%
Explanation:
Given that
Income = 28
End of period value = 2.40
Original value = 29
Recall that
HPR = ((Income + (end of period value - original value)) / original value) × 100
Therefore,
HPR = 28 + (2.40 - 29)/29 × 100
= (28 + ( - 26.6) / 29) × 100
= (1.4 / 29) × 100
= 0.04827 × 100
= 4. 83%
Answer:
All a user needs to do is insert the numbers
Explanation:
Shell tools offer simple interface to the vendors, the user just need to input the numbers
#1 goal-setting #2 decision-making
Answer:
b. An increase of $15 million
Explanation:
The computation of the cash impact of the change in working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
So, the change in working capital is
= Increase in current assets - increased in current liabilities
= $40 million - $25 million
= $15 million
Hence, the b option is correct
