Answer:
Reserve requirement = 20% or 0.250
Simple money multiplier = 1/Reserve Ratio = 1/0.2 = 5
Note that,
Increase in money supply = Increase in total reserves * Simple money multiplier
$100 Billion = Increase in total reserves * 5
Increase in total reserves = $20 billion
This means that the federal reserve should decrease the reserve requirement by purchasing $20 billion worth of US government bonds from banks, which will lead to increase of $100 billion in money supply.
Organizations that utilize the file processing approach spend as much as 80% of their is development budget on maintenance.
<h3>What is
file processing approach?</h3>
File Processing System (FPS) can be described as the way of storing, retrieving as well as manipulating data that could be used by different organization.
It should be noted that Files are used to store various documents, however Organizations that utilize the file processing approach spend as much as 80% of their is development budget on maintenance.
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Answer:
C) 12.5%
Explanation:
The computation of the return on equity is shown below
Return on equity is
= net income ÷ equity
where,
equity is
= Total assets - total liabilities
= $500,000 - $100,000
= $400,000
Now the return on equity is
= $50,000 ÷ $400,000
= 12.50%
Hence, the return on equity is 12.50%
Therefore the corredct option is c.
Answer:
A. hold money to transfer purchasing power into the future.
Explanation:
People use money as a store of value when they hold money to transfer purchasing power into the future.
Answer:
The years of repayment is 7.96 years
Explanation:
The number of years of the loan repayment can be computed using nper formula in excel.
=nper(rate,-pmt,pv,fv)
rate is the monthly interest rate which is 6.6%/12=0.0055
pmt is the amount of monthly repayment which is $2,400
pv is the amount of the finance package received which is $178,000
fv is the total amount of repayment which is unknown hence taken as zero
=nper(0.0055
,-2400,178000,0)= 95.55 months
= 95.55 /12 months=7.96 years
