Answer:
If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___.
$3,200.
Explanation:
a) Data and Calculations:
Excess reserves = $800
Reserve requirement = 20%
Therefore, M1 money supply = $800/20% = $4,000
The increase in the M1 money supply will be $3,200 ($4,000 - $800)
b) The amount of funds that a bank is required by the central bank to hold in reserve to meet liabilities in case of sudden withdrawals by depositors is called the reserve requirement. It is usually stated as a percentage by the Fed Reserve. The Fed uses reserve requirement as a tool to increase or decrease money supply in the economy and influence interest rates. What the Fed does with the reserve requirement, therefore, depends on the monetary policy that it chooses to respond to the money market.
The compound amount recieved by Jamie after 180 days is $1,466,844.98
Explanation:
We know that money in any sort of banking account earns interests in a compounding manner.
Amount at the end of time “x” is given by A= P(1+R/100)
ˣ
Where A= amount after the said time period
P= Principal
R= Rate
x= time period
One must note that “x” and “R” must be in same time-frame i.e. if the rate is compounded daily, time period must be considered daily and so on.
Substituting the values of P as $ 3000, R as 3.5%, and x as 180
Amount after 180 days= 3000 (1+3.5/100)
¹⁸⁰
Amount= $1,466,844.98
Thus, the amount is $1,466,844.98
Because he divided the population into smaller groups and then randomly sampled each group, he would be using a stratified random sampling procedure.
Answer:
The present value of your windfall if the appropriate discount rate is 10 percent is $5,562
Explanation:
Amount of Prize = $3,000,000
number of year = 66 years
Discount Rate = 10%
use following formula to calculate the Present value of Lottery prize
Present Value = Future value / ( 1 + discount rate )^number of years
PV = FV / ( 1 + r )^n
PV = $3,000,000 / ( 1 + 0.10 )^66
PV = $3,000,000 x ( 1 + 0.10 )^-66
PV = $3,000,000 x ( 1.10 )^-66
PV = $5,561.65
PV = $5,562
Answer:
Health insurance
Explanation:
The other insurances listed are all insurances paid out when you die.
