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    Marginal Analysis / Basic Estimation Techniques

    1. You are the manager of the customer service department at a bank and you want to hire customer service representatives for a newly opened bank branch. You realize that you can hire employees with a high school degree (HS) who earn $10,000 annually or employees with a bachelor's degree (B) who earn $20,000. You want to maxi

    Adjustable-rate versus fixed-rate mortgages

    What are the advantages and disadvantages of adjustable-rate versus fixed-rate mortgages? Identify the conditions that should exist to make adjustable and fixed-rate mortgages favorable to lenders and borrowers at the same time. Which would you suggest for a home buyer at this time?

    Annual cost of borrowing

    Christy maintains her inventory levels by borrowing cash on daily basis from the bank. She estimates the demand for cash for the coming year will be $17,000 per day for 305 working days. Any money she borrows must be repaid with 9% annual interest. Each time Christy takes out a loan the bank charges a loan origination fee of

    Computation of Monthly Interest Rate

    You are applying for a loan to borrow $(average new car price/4). The bank loan is for 50 months and you will be paying 7% of the borrowed amount in each payment. What is the rate per month that you will be paying?

    Inflationary gap

    An economy is facing the inflationary gap shown in the ac­companying diagram. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and aggregate price level change as the monetary policy closes the inflatio

    Tracking a Purchase

    Think about a small purchase ($10 or less) you made recently. (Can be any type of purchase, ex: gas, picture frame, breakfast). How will that purchase affect the economy? Try to trace the effects of your purchase through the economy?how many steps might it take for the money to find its way back to you as part of your income?

    Policies & Prospects Associated Situations

    For each of the following situations explain which of the policy issues is associated with stance the institution has taken. A)The IMF extends a long-term loan to a nations government to help it maintain publicly supported production of goods and services that the government otherwise would have turned over to private compani

    Effective Annual Interest Rates

    Bank A offers to lend $10,00 at a nominal rate of 7%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Bank B also offers to lend the $10,000, but it will charge 8%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks

    Effective Rate of Interest on Installment Loan

    Vroom Motorcycle Company is borrowing $30,000 from First State Bank. The total interest charge is $9,000. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this installment loan?

    Kissick Co

    Record transactions. Use the horizontal model, or write the journal entry, for each of the following transactions that occurred during the first year of operations at Kissick Co a. Issued 200,000 shares of $5-par-value common stock for $1,000,000 in cash. b. Borrowed $500,000 from the Oglesby National Bank and signed a 12

    Cash Flow Classifications

    Please help with the following problem. Cash Flow Classifications For each of the following items, indicate whether it would be classified and reported under the operating activities (OA), investing activities (IA), or financing activities (FA) section of a statement of cash flows: a. Cash receipts from selling merchandise

    Federal Funds Rate and the FOMC

    Could someone help with the following true/false questions and explain the answer? Your help is greatly appreciated:) Q. The Federal Funds rate is the interest rate banks charge each other. Q. The primary purpose of the FOMC is to enforce bank regulations.

    Present Value with Calculations

    You have just joined a regional investment banking firm. They have offered you two different salary arrangements. You can have $81,000 per year for the next 3 years or $60,000 per year for the next 3 years, along with a $50,000 signing bonus today. If the market interest rate is 16%, what is the present value of the best salary

    Variables - discreet and continuous random variables

    I'm having problems with this one - Which of these variables are discreet and which are continuous random variables? a. The number of new accounts established by a salesperson in a year. b. The time between customer arrivals to a bank ATM. c. The number of customers in Big Nick's barber shop. d. The amount of fuel in your

    Probability - Bank of America

    I need help with this question: Bank of America customers select their own 3 digit personal identification number ( pin )for use at ATM's. a. Think of this as an experiment and list four possible outcomes. b. What is the probability Mr. Jones and Mrs. Smith select the same pin? c. Which concept of probability do you use to

    Money and Banking

    What relationships do you observe between maturity and discount rate and the current price? Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. See attached file for full problem description.

    Preparing a Bank Reconciliation and Journal Entries for Stan Co.

    3. The following information pertains to Stan Co. Cash balance per bank, July 31: $7,263. July bank service charge not recorded by depositor: $28 Cash balance per books, July 31: $7,284. Deposits in transit, July 31: $1,500. Bank collected $800 note for Stan in July, plus $36 interest, less $20 service fee. The collec

    National Debt

    Discuss with your classmates the impact of the national debt on the American economy. Use the principles and concepts you have learned in this macroeconomics class. Remember that we measure the economy by the equation C + I + G + X = GDP. So think about how the government actually borrows money. Review the graphs that show what

    Monopolistic Competitive Industry

    PROBLEM: Earlier this year the rising price of tortillas resulted in major protests in Mexico City combined with a warning from the Mexican central bank that this may fuel rising inflation. In response the President of Mexico announced that the government will be setting a price ceiling on the price of corn. [Corn is the majo


    1. Key Question In the table on page 289 you will find consolidated balance sheets for the commercial banking system and the 12 Federal Reserve Banks. Use columns 1 through 3 to indicate how the balance sheets would read after each of transactions a to c is completed. Do not cumulate your answers; that is, analyze each transac

    Macroeconomic impact of individual decisions

    What would happen to GDP if a significant number of house-spouses who were previously stay home to care for their children began taking jobs and placing their children in day care? Would the nation's "well being" necessarily be better off? Is the following statement true or false: "The 'Discount Rate' used by the Fed is the

    Economic competition from management journal

    1. Choose an article on economic competition from a professional economic, or management journal published in the last seven years such as The Economist, Harvard Business Review, or Sloan Management Review. Provide an article review that summarizes the topic and sets forth key positions of the author, and whether you agree or d

    General Business M/C Questions

    1. Amazon. COM's primary obsession is to deliver a special ______ to every customer. A) assortment of products (B) bookstore(C)experience (D) set of recommendations 2. A (n) ____ is the set of actual and potential buyers of a product. A) market(B) audience (C) group (D) segment 3. Many banks are leading the way in usin

    Bank balance sheet

    Suppose that a bank faces a balance sheet illustrated below, and the required reserve ratio is 20%. ASSETS LIABILITIES Reserves $50,000 Deposits $100,000 Loans $50,000 Total $100,000 Total $100,000 A. How much more could this bank loan out without acquiring additional funds? B. St