If the reserve requirement of a bank is 33%, then $100 of MO will lead to $300 of M1. Thus, option (a) is correct.
What is bank?
The term bank refers to the financial institution offering the services related to the term money. The bank is manage financial system to handling accounts and manage the cash.
The bank is 33%
Money Multiplier= 
Money Multiplier= 1/33%
Money Multiplier = 3.03
Money Multiplier = 3 (Approximately)
M1= Money Multiplier×M0
M1= 3×100
M1 = $300
$100 of M0 will lead to $300 of M1.
As a result, the MO of the bank can lead to the $300. Therefore, option (a) is correct.
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Your question is incomplete, but most probably the full question was
O $300
O $33
O $1000
O $330
Answer:
12.3%
Explanation:
In this question, we are asked to calculate what is believed a 2-year market security will be yielding, 4 years from now
To calculate this, we proceed mathematically;
2 year yield 4 years from now = [ ( 1 + 0.0765)^6 / ( 1 + 0.054)^4]^1/2 - 1
2 year yield 4 years from now = [ 1.5563 / 1.2341]^1/2 - 1 = 0.123
2 year yield 4 years from now = 0.123
2 year yield 4 years from now = 12.3%
Answer:
C) 15 months
Explanation:
As per the law, a company with two or more shareholders must hold an Annual AGM every year. The AGM for a new company must be held within the first nines months after the financial year.
The AGM for an existing company must be held not later than six months after the end of a financial year. However, the law has set 15 months as the maximum gap of time allowed between two general meetings.
Answer:
The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.
Explanation:
Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.
Answer:
I= $1,600
Explanation:
We have to clear Investment from the GDP formula:
GDP= Consumption (C)+ Investment (I)+ Government expenditure (G)+ Net exports (exports-imports)
I=GDP-G-C-(X-M)
The problem gives this information:
GDP: $10,000
G: $2,000
C: $6,000
X: $1,000
M: $600
I= $10,000-$2,000-$6,000-($1,000-$600)
Investment in 2010=$1,600
