Answer:
If the Federal Reserve buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Federal Reserve sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.
Answer:
a. The present discounted value of a stream of returns can be calculated in real or nominal terms. TRUE
This is true because the present value of returns can be calculated using nominal rates which do not account for inflation, or using real rates which will account for inflation.
b. The higher the one-year interest rate, the lower the present discounted value of a payment next year. TRUE
Higher interest rates discount payments faster because they discount by dividing the payment so a higher rate would divide the payment more and lead to a lower present value.
c. Interest rates are normally expected to be constant over time. FALSE
Interest rates change over time in response to economic conditions.
d. Bonds are a claim to a sequence of constant payments over a number of years. TRUE
As a bondholder, you are entitled to payments over the life of the bond which means that it is a claim to constant payment over a number of years.
e. The yield curve normally slopes up. TRUE
The yield curve slopes upward to represent that interest rates increase in future.
Answer:
A. Company X pay bills in 19 days
Explanation:
Days Payable Outstanding indicates that the average payables are 19 days old. It is calculated by dividing the credit purchases by the average payables.
The other options are not valid due to following:
B: Company X has more equity than debt, this is negated by the Debt/ Equity ratio is 1.4 which indicates that the debt is 140 % ties of equity.
C: The Company pays bills in 20 days. It is negated by the Days payable outstanding which is 19.
D: Company pays interest in 12 days, is invalid as the Times Interest Earned indicates that the Company is earning 12 times its interest costs.
E: Company generates $ 3.10 in profit per dollar invested in assets is also not valid .
<span>For
the current generation, computer is widely used around the world. Student,
Employees, businessman and businesswoman, government, banks, transportation,
malls, groceries, etc.
Computer became our number one resources when it comes to researching and doing
some of our jobs. Computer can perform tasks like calculator, presentations and
even playing music and movies. We no longer need to buy DVDs or Cassettes because
computer have it all. Computer is designed to help us do our tasks easier
however, it also makes us lazy and very dependable.</span>
Answer:
Private saving = $2 trillion
Public saving = $1 trillion
Explanation:
Private saving = GDP - Taxes + Transfer payments - Consumption spending
= Y - T + TR - C
= $11 - $2 + $1 - $8
= $2 trillion
Public saving = Taxes - Government spending - Transfer payments
= T - G - TR
= $2 - $0 - $1
= $1 trillion
Therefore;
Private saving = $2 trillion, Public saving = $1 trillion