Answer: $400
Explanation:
M1 money supply simply refers to the monies which are liquid like the checkable deposits, traveler's checks, and the coins and currencies that are in circulation.
Therefore, based on the information given in the question, the bank's deposits that are part of M1 will be the $400 in checkable deposit.
Answer:
Current value from operations is $534.71 million.
Explanation:
The value from operations can be calculated by discounting back the free cash flow of the firm. The first three year's FCF will be discounted back using the WACC and when the growth rate o FCF becomes constant after Year 3, the terminal value will be calculated and discounted back too.
The current value from operations = FCF1 / (1+WACC) + FCF2 / (1+WACC)² + FCF3 / (1+WACC)³ + [FCF3 * (1+g) / WACC - g] / (1+WACC)³
Current value from operations = 20 / (1+0.1) + 25 / (1+0.1)² + 30 / (1+0.1)³ + [30 * (1+0.05) / (0.1 - 0.05)] / (1+0.1)³
Current value from operations = $534.71 million
Answer:
Recession cause standard monetary and fiscal effects.
Explanation:
Recession impact all kinds of business, large and small,due to tightening credit conditions, slower, demand, and general fear and uncertainty.
Answer: The GDP deflator
Explanation: The GDP(gross domestic product) deflator is a price index that is used to measure the prices of all the goods and services produced within an economy. The cars which are exported by General Motors are produced domestically within the United States of America and exported outside the country.
Any goods produced externally are not considered when determining the GDP deflator.