If you take $200 out of your savings account and keep it in your wallet, the immediate result of this transaction is that M1: A) Stays the same. B) Increases by more than $200. C) Increases by $200. D) Increases by less than $200.
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- The difference between M1 and M2 is given by which of the following? Group of answer choices M1 is limited to currency, whereas M2 contains M1 plus traveler’s checks and money incheckable accounts. M1 is made up of currency, traveler’s checks, and money in checkable accounts, whereasM2 contains M1 plus savings deposits and time deposits. M1 includes currency and traveler’s checks, whereas M2 contains M1 plus money inchecking accounts. M1 includes currency, coins, gold, and silver, whereas M2 does not contain gold andsilver.Suppose your utility function for money is a square-root function of its value in US dollars. So, for instance, $400 is worth 20 utils for you, $961 is worth 31 utils for you, and $62.5K is worth 250 utils for you. Now, let’s say your annual salary is $90K, although there is a small risk (p = 0.05) that something catastrophic will happen and reduce your income for the year to $14.4K. An insurance company comes along and offers to insure you against the loss of your salary. The cost of the insurance is $4,736. If you buy the policy and catastrophe strikes, the insurance company will pay out the $75,600 that you would otherwise have lost. From the standpoint of maximizing expected utility, would buying this insurance be a good deal for you? What would be the insurance company’s expected monetary value of selling you the policy?“During your 48-month tour of duty, you will invest $200 per month for the first 45 months. We will make the 46th, 47th, and 48th payments of $200 each for you. When you leave the service, we will pay you $10,000 cash.” Is this a good deal for Corporal Moneymaker? Use the IRR method in developing your answer. What assumptions are being made by Corporal Moneymaker if he enters into this contract? ( please solve IRR method , not excel solver or from table values)
- Solve for q when P=MC, P=7 MC=10 - 0.06q + 0.00015q^2 7 = 10 - 0.06q + 0.00015q^2Consumers deposit their total saving, equaling the value of 1, at the bank at t = 0. The bank invests all deposit in an illiquid asset, yielding R = 1.5 inperiod 2 and has a liquidation value of 1 at period 1. Consumers have the probability of 25 percent of being impatient and consume in period 1. Theremaining patient consumers want to consume in period 2. The bank offers r(1) = 1.10 and r(2) = 1.20 as payment to consumers who withdraw inperiod 1 and period 2 respectively. Suppose that consumers believe at period 1 that 70 percent of the consumers withdraw their deposits at period 1, will this believe trigger a bankrun?The lesson of __________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options. Group of answer choices sunk costs opportunity costs marginal analysis budget constraints
- D7 You run an oil company that wants to extract an oil reserve. The total stock of oil in the reserve is 600 barrels. You must sell all of the oil in two time periods, so the quantity extracted will be q1 +q2 = 600. The price per barrel you can sell the oil for is pt = 710 − 1 2 qt in each period. The cost of extracting a single barrel is not constant, but increases as more oil is extracted in a period, c(qt) = 1 2 qt. If the interest rate is 5%, how much oil will you extract in periods 1 and 2 if you wanted to maximize profits.During the subprime mortgage crisis in the USA, the housing market suffered the worst slump in nearly two decades. Hot housing markets like Boston, Ft. Lauderdale-Florida, and Washington DC cooled as rising interest rates and tightened lending standards eliminated lots of potential buyers. With job losses in the auto industry, the housing downturn was especially serious in Detroit and surrounding areas. Suppose a real estate speculator (مضارب في قطاع العقارات) seeking to profit from the downturn bought a pool of home mortgages for $1 million on the expectation of quickly selling them to out-of-town investors for $1.5 million. If the deal falls through إذا فشلت الصفقة , the speculator would be able to just as quickly dump the pool of home mortgages in the secondary marketيتخلص من الصفقة عن طريق بيعها في السوق الثانوي for $800,000. Calculate the speculator's expected payoff if there is a 50/50 chance of successfully selling the pool of home mortgages to out-of-town investors. Calculate…COVID-19 brought global economic and financial ramifications that were felt through global supply chains, from raw materials to finished products. Some term it as a black swan event that may finally force many companies, and entire industries, to rethink and transform their global supply chain model. If you are the CEO of a U.S. based company which is heavily dependent on foreign locations for sourcing and manufacturing, how would you make short-term and long-term plans to modify your supply chain model? List and discuss the main considerations or factors that will influence your decision.
- Please give me proper calculation and full explanation otherwise i give downvoteSuppose that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero. a.What is your average money balance during the pay period? b.How would each of the following changes affect your average monthly balance? i.You are paid $500 twice monthly rather than $1,000 each month. ii.You are uncertain about your total spending each month. iii.You spend a lot in the beginning of the month (e.g., for rent) and little at the end of the month. iv.Your monthly income increases.If total deposit with post office is $31,000 and M4 is $19,000 Calculate M3