Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.
Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.
Explanation:
Roommate depositing $100 is an example of saving and not investing.
Taking out a mortgage and buying a house is an example of consumption and not investment.
Answer:
c. 25 percent.
Explanation:
The computation of the reserve requirement percentage is shown below:
Given that
Deposits made = $8,000
Loans = $6,000
So the required reserve is
= deposits made - loans
= $8,000 - $6,000
= $2,000
Now the required reserve is
= $2,000 ÷ $8,000
= 25%
Hence, the correct option is c. 25 percent
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: 14.84%
Explanation:
To calculate the rate of return the investors received we will do a simple return formula to find out by how much, in terms of the Opening NAV, the fund has increased.
To find out how much the fund has increased by we can add up all the figures then deduct the opening balance.
= 39.71 + 0.64 + 1.13 - 36.12
= $5.36
$5.36 is the how much the fund has increased by.
Expressing it in percentage of the opening NAV per share we have,
= 5.36/36.12
= 0.14839424141
= 14.84%
14.84% is the rate of return that an investor received on the Yachtsman Fund in 2016.
The answer is: c) dates peaks and troughs only after the fact.
This mean that millions of dollar spents by the Bureau cannot necessarily used to address the economic problems that people currently face.
One argument to counter such criticism is that the data from the Bureau could be used to make future predicitons and prevent any mistakes in the past from occuring again in the future.
