The smaller the required reserve ratio, the larger the simple deposit multiplier
Indicate whether the statement is true or false
True
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If you think that there is a 75% chance of a stock increasing by 8% and a 25% change of it falling by 20%, what is the expected return on the stock? Report using percentages with two decimal places
What will be an ideal response?
Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's
a. True b. False Indicate whether the statement is true or false
Converting corn into ethanol is most profitable when there is/are:
a. High ethanol prices and low corn prices b. Low ethanol prices and low corn prices c. Low ethanol prices and high corn prices d. When the amount of ethanol produced approaches the limits of the amount required in production of gasoline blended with 10% ethanol (the current "blend wall") e. Restricted expansion of ethanol production capacity
(Advanced analysis) Alex wants to have $800 saved up at the end of 10 years. If he deposits $500 today, what annually compounded rate of interest would he have to earn to reach his goal?
A. 4.8 percent. B. 5.2 percent. C. 5.7 percent. D. 6.2 percent.