Answer:
b. 2
Explanation:
The computation of the money multiplier is shown below:
Money multiplier is
= (1 + currency deposit) ÷ (reserves + currency deposits)
= (1 + 0.80) ÷ (0.10 + 0.80)
= 1.8 ÷ 0.9
= 2
hence, the money multiplier is 2
Therefore the correct option is b. 2
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
An elastic demand curve will result in higher social surplus. Social surplus equals consumer surplus plus supplier surplus, or simply total surplus. The highest possible social surplus is reached at the equilibrium point.
If a product's demand is completely inelastic, the supplier can increase the price at will, reducing consumer surplus to minimum levels. If a product's demand is completely elastic, then consumer surplus increases while supplier surplus is directly related to shifts in the demand. Higher demand increases supplier surplus.
Answer:
On December 31 of the current year, can the Board of Directors declare and pay a cash dividend of $ 2 million
If the company don´'t have enough cash on hand to distribute the previously announced sum to shareholders, it may have to borrow funds to honor the dividend payment.
Explanation:
Companies can pay dividends in cash or additional shares.
If the company don´'t have enough cash on hand to distribute the previously announced sum to shareholders, it may have to borrow funds to honor the dividend payment.
Answer:
Missing word <em>"a. What must the six-month risk-free rate be in Japan"</em>
<em />
a. Spot rate = 1 US $ = 1.2377 Aus.dollar
Forward rate = 1 US $ = 1.2356 Aus.dollar
<u>1.2356</u> = <u>(1 + i Ad)</u>
1.2377 (1 + 0.05)
0.9983 * (1.05) = 1 + i.Ad
1.048215 = 1 + i.Ad
i.Ad = 1.048215 - 1
i.Ad = 0.048215
i.Ad = 4.82%
b. Spot rate = 1 US $ = 100.3300 Japan Yen
Forward rate = 1 US $ = 100.0500 Japan Yen
<u>100.0500</u> = <u>(1 + i Ad)</u>
100.3300 (1 + 0.05)
0.9972 * (1.05) = 1 + i.Ad
1.04706 = 1 + i.Ad
i.Ad = 1.04706 - 1
i.Ad = 0.04706
i.Ad = 4.71%
