QUESTION 10 What is the formula for calculating the present value of a future income stream...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 10 What is the formula for calculating the present value of a future income stream at a specific discount rate? PV-Future Value divided by the discount rate PV = the sum of a stream of payments discounted annually over the term of years of the income stream. PV-Future Value multiplied by the discount rate PV = a calculation of the time value of money, without reference to a discount rate or risk QUESTION 11 What are the two principal goals of the Federal Reserve Bank? 0 Monetary policy and fiscal policy Currency issuance and bank registration Money supply and currency manipulation Managing the money supply and supervising the banking system QUESTION 12 In 1934, Congress enacted the Glass-Steagall Act, which prohibited commercial banks from using depositors' money to speculate in stocks. More than six decades of financial stability ensued. Why was this law repealed in 1999? Because economists from elite universities regarded the "Chinese wall" separating commercial and investment banks as outmoded. Because financial services industry leaders demanded more insurance. Glass-Steagall was concerned with international trade, not with finance. Because federal revenue was precipitously declining, necessitating bank taxation at a new level as part of the Tax Reform Act of 1999. QUESTION 13 in the video "Capitalism hits the fan we saw and heard Professor Wolf describe the basis for American exceptionalism - namely the trend that lasted from 1820 to 1980 that saw incremental gains in worker productivity shared with workers in the form of higher and higher wages. What four conditions, issues, or forces came about that changed this trend? Globalization, monetary reform, automation, and the widespread adoption of the tractor in agriculture. Computerization, credit-default swaps, mortgage-backed securities, and the repeal of the Smoot-Hawley Act Globalization, automation, and the and the natural gas price collapses of 1973 and 1979. Globalization, automation, declining unionization of the workforce, and the rise in unsecured consumer debt. QUESTION 10 What is the formula for calculating the present value of a future income stream at a specific discount rate? PV-Future Value divided by the discount rate PV = the sum of a stream of payments discounted annually over the term of years of the income stream. PV-Future Value multiplied by the discount rate PV = a calculation of the time value of money, without reference to a discount rate or risk QUESTION 11 What are the two principal goals of the Federal Reserve Bank? 0 Monetary policy and fiscal policy Currency issuance and bank registration Money supply and currency manipulation Managing the money supply and supervising the banking system QUESTION 12 In 1934, Congress enacted the Glass-Steagall Act, which prohibited commercial banks from using depositors' money to speculate in stocks. More than six decades of financial stability ensued. Why was this law repealed in 1999? Because economists from elite universities regarded the "Chinese wall" separating commercial and investment banks as outmoded. Because financial services industry leaders demanded more insurance. Glass-Steagall was concerned with international trade, not with finance. Because federal revenue was precipitously declining, necessitating bank taxation at a new level as part of the Tax Reform Act of 1999. QUESTION 13 in the video "Capitalism hits the fan we saw and heard Professor Wolf describe the basis for American exceptionalism - namely the trend that lasted from 1820 to 1980 that saw incremental gains in worker productivity shared with workers in the form of higher and higher wages. What four conditions, issues, or forces came about that changed this trend? Globalization, monetary reform, automation, and the widespread adoption of the tractor in agriculture. Computerization, credit-default swaps, mortgage-backed securities, and the repeal of the Smoot-Hawley Act Globalization, automation, and the and the natural gas price collapses of 1973 and 1979. Globalization, automation, declining unionization of the workforce, and the rise in unsecured consumer debt.
Expert Answer:
Answer rating: 100% (QA)
The correct answer for the formula for calculating the present value of a future ... View the full answer
Related Book For
Systems analysis and design
ISBN: ?978-1118808177
5th edition
Authors: Alan Dennis, Barbara Haley Wixom, Roberta m. Roth
Posted Date:
Students also viewed these economics questions
-
In 1934, Congress enacted the Glass-Steagall Act, which prohibited commercial banks from using depositors' money to speculate in stocks. More than six decades of financial stability ensued. Why was...
-
CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
-
Consider constant marginal abatement cost for two firms: (a) Determine the optimal allocation for both firms when the damage function is convex, and when it is linear. (b) Is it possible to achieve...
-
A thin film of oil (n = 1.40) floats on water (n = 1.33). When sunlight is incident at right angles to this film, the only colors that are absent from the reflected light are blue (458 nm) and red...
-
How are the principles of organization followed? (Be sure to include the span of management and division of labor.)
-
The defendant, Sterile Technologies, Inc., purchased a sterilizer from the plaintiff, Troy Boiler Works, on an installment payment plan. The defendant was to make installment payments charged with
-
Refer to Exhibit 6.5 to identify the nine types of audit procedures used as part of the audit evidence-gathering process. Following is a list of audit procedures performed. For each procedure (listed...
-
Vanessa went to Florida and purchased a laptop for US$920.00 by converting his Canadian money at an exchange rate of C$1 = US$0.9254. After a month, he returned to Vancouver but the exchange rate...
-
A horizontal 3-ft long ASTM 50 cast iron beam with fixed ends and having a rectangular cross sectional dimensions H x B (H=2B) is to be bumped at midspan, perpendicular to the axis of the beam, by a...
-
What problems may be involved in distinguishing between lack of capability and negligence?
-
Let the volatility \(\sigma\) be nonconstant and a function of the underlying asset, \(\sigma(A(t))\). Use the chain rule to compute the smile-adjusted delta of a call option.
-
Demand for an item over the next five periods is forecasted to be 10, 20, 15, 16, and 18. There are currently 20 items on hand. The order cost is $100 per order, and each item costs $50. The time...
-
Questions for discussion: read the material in Exhibit 3. 3 and answer the two questions presented at the end of the exhibit. Data from Exhibit 3. 3 Exhibit 3.3 What is the most desirable level of...
-
Imagine that a study is being launched to estimate the money value on the Yosemite National Park (please use Google to learn more about this park). The gate (entrance fee) as of 2017 is \(\$ 175\)...
-
JACK plans to retire after 20 years. Deposit account in a bank for this He thinks to open it. The interest on time deposits applied by the bank is 12% per annum. JACK He will deposit equal money...
-
Respond to the ethical judgments required based on the following scenarios. Scenario 1. Assume you have collected a sample using MUS and that you have evaluated that sample to calculate a total...
-
The use case diagram for the Digital Music Download system does not include special use case relationships (e.g., extends or includes) or specialized actors. See whether you can come up with one...
-
Think about sending a first-class letter to an international pen pal. Describe the process that the letter goes through to get from your initial creation of the letter to being read by your friend,...
-
Suppose that you are installing a new accounting package in your small business. What conversion strategy would you use? Develop a conversion plan (i.e., technical aspects only).
-
The microfinance concept has been a blessing for many people in developing countries. Its success there causes some to wonder if it can spur growth in areas of developed nations that need...
-
An institution that many people know little about and some governments find worrisome is offshore financial centers. They operate with little oversight, few regulations, and often little taxation....
-
What is the appeal of the eurocurrency market?
Study smarter with the SolutionInn App