Principles Of Macroeconomics V 8.0
18th Edition
ISBN: 9781453378717
Author: Taylor
Publisher: BOSTON ACADEMIC (DBA FLAT WORLD)
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Textbook Question
Chapter 14, Problem 14RQ
What are a bank’s assets? What are its liabilities?
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Chapter 14 Solutions
Principles Of Macroeconomics V 8.0
Ch. 14 - In many casinos, a person buys chips to use for...Ch. 14 - Can you name some item that is a store of value,...Ch. 14 - If you are out shopping for clothes and books,...Ch. 14 - For the following list of items, indicate If they...Ch. 14 - Explain why the money listed under assets on a...Ch. 14 - Imagine that you are in the position of buying...Ch. 14 - What are the four functions that money serves?Ch. 14 - How does the existence of money simplify the...Ch. 14 - What is the double-coincidence of wants?Ch. 14 - What components of money do we count as part of...
Ch. 14 - What components of money do we count in M2?Ch. 14 - Why do we call a bank a financial intermediary?Ch. 14 - What does a balance sheet show?Ch. 14 - What are a banks assets? What are its liabilities?Ch. 14 - How do you calculate a banks net worth?Ch. 14 - How can a bank end up with negative net worth?Ch. 14 - What is the asset-liability time mismatch that all...Ch. 14 - What is the risk if a bank does not diversify its...Ch. 14 - How do banks create money?Ch. 14 - What is the formula for the money multiplier?Ch. 14 - The Bring it Home Feature discusses the use of...Ch. 14 - Imagine that you are a barber in a world without...Ch. 14 - Explain why think the Federal Reserve Bank tracks...Ch. 14 - The total amount of U.S. currency in circulation...Ch. 14 - Explain the difference between how you would...Ch. 14 - Should banks have to hold 100 of their deposits?...Ch. 14 - Explain what will happen to the money multiplier...Ch. 14 - What do you think the Federal Reserve Bank did to...Ch. 14 - If you take 100 out of your piggy bank and deposit...Ch. 14 - A bank has deposits of 400. It holds reserves of...Ch. 14 - Humongous Bank is the only bank in the economy....
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