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:
-$2,050
Explanation:
Given that,
Number of options sold = 5
Option price per share = $1.90
Exercise price = $45 per share
Market price = $39 per share
As the exercise price is greater than the stock market price, so the purchaser of the put option will exercise the option,
Lot size = 100 shares
Therefore, the loss on this investment is calculated as follows:
= -{[(Exercise price - Market price) × Number of options sold] - (Option price × Number of options sold)} × Lot size
= -{[($45 - $39) × 5] - ($1.90 × 5)} × 100
= -$2,050
Interest is defined as the amount paid regularly at an agreed rate for the use of money lent. Depending on the agreement of both parties, interest is for the delayed repayment of a debt. So, to answer the question above: True.
Firms do create goods. Categories of manufacturing costs include direct labor, direct materials and manufacturing overhead.
<h3>What are manufacturing costs?</h3>
Manufacturing costs is grouped into materials, labor, and overhead. They are kinds of direct costs.
Manufacturing cost is known to be the amount of costs of all resources taken into the process of creating a product. The manufacturing cost is grouped into three categories called: direct materials cost, direct labor cost and manufacturing overhead.
Learn more about manufacturing costs from
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