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Elis [28]
3 years ago
11

Suppose the Federal Reserve purchases a $100,000 bond from John Doe, who deposits the proceeds in the Manufacturer's National Ba

nk; what will be the impact of this transaction on the supply of money?
Business
1 answer:
timurjin [86]3 years ago
8 0

Answer:

Explanation:

I hope you get a second answer to this so I can see what the actual answer is. My guess is that the Federal Reserve has just put money into the system by purchasing Doe's bond. The fact that Doe puts it in a bank account does not change the fact that we are uncertain where the Feds got the money to buy the bond. They have the power to print money. They've just used some of that printed money to buy something that might be of value.

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A stock is currently selling for $67 per share. A call option with an exercise price of $70 sells for $3.21 and expires in three
natulia [17]

Answer:

$5.76

Explanation:

Calculation to determine the price of a put option with the same exercise price

We would be Using put-call parity and solving for the put price

$67 + P = $70e^–(.026)(3/12)+ $3.21

$67 + P = $70e^–(.026)(.25)+ $3.21

$67 + P =190.2797^–(0.0065)+ $3.21

$67 + P =$69.5465+ $3.21

$67 + P =$72.7565

P=$72.7565-$67

P=$5.7565

P=$5.76 (Approximately)

Therefore the price of a put option with the same exercise price will be $5.76

7 0
3 years ago
Current Year Prior Year Accounts payable, end of year $ 4,603 $ 8,548 Accounts receivable, net, end of year 18,685 15,726 Invent
solong [7]

<em>Find the given attachments for the complete solution</em>

<em />

8 0
4 years ago
"An OTC equity trader has received a large influx of sell orders for ABC stock and, to fill them, has taken an extremely large l
ANTONII [103]

Answer:

decrease the bid price in the OTCBB

Explanation:

Given that, the dealer's Bid price is too high, this is believed to be the reason behind the sellers trying to make orders. Hence, to reduce the orders, the dealer will lower the Bid price.

Hence, in this case, the best answer or alternative to be considered is that, the dealer would most likely decrease the bid price in the OTCBB, this is specifically to discourage the sellers.

7 0
4 years ago
Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sale
kolbaska11 [484]

Answer:

Selling price per composite unit= $11.3

Explanation:

Giving the following information:

Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2.

Unit price and cost data are: M N OUnit sales price$12 $10 $11

<u>First, we need to calculate the sales proportion for each product:</u>

M= 3/6= 0.5

N= 1/6= 0.17

O= 2/6= 0.33

<u>Now, the selling price per composite unit:</u>

Selling price per composite unit= (0.5*12) + (0.17*10) + (0.33*11)

Selling price per composite unit= $11.3

6 0
3 years ago
The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70 percent of the next mo
Dahasolnce [82]

Answer:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

MISSING INFORMATION ATTACHED

Explanation:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

The sales forecasted plus the desired ending inventory is the complete needs the sales department expect to be fullfill

Then, as the company has a beginning invneotry each period a portion of this needs is already fullfil thus, the difference are the production requirements.

7 0
4 years ago
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