Answer:
The bank can increase loans by a maximum of $1500.
Explanation:
There is no excess reserve.
The reserve requirement is 25%.
The total reserves are increased by $2,000.
The required reserve will be 25% of $2,000.
=(25/100)*2000
=0.25*2000
=500
So, the required reserve is $500.
The loan can be increased by
=Increase in total reserve-required reserve
=$(2000-500)
=$1,500
So, the banks can increase loans up to $1,500.
Answer:
c
Explanation:
theprice would be too high
Answer:
Decrease, Decrease
Explanation:
From the question we are informed about my financial investments which consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. In the case whereby the interest rates on newly-issued government bonds increase, then the price of my bonds will decrease and the price of the shares you own will decrease. Financial investment can be regarded as asset which one put money on hoping that there will be growth of the asset and the asset will appreciate to sum of money larger than the asset. Bond is an example of this, a bond can be explained as fixed income instrument which is a representation of a loan that is set up by an investor given out to a borrower. This borrower could be governmental or Corporate.
The Owners of bonds could be
debtholders as well as creditors of the firm that issue it i.e the issuer. Details of bonds is " end date"
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Explanation:
Answer:
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