Question 2 On 20 April 2021, the Government of Bangladesh announced an additional BDT 105 million allocation as relief for people affected by the lockdown in the country. This brings the total government disbursement of COVID-19 related payments to low-income families to around BDT 9.3 billion. Most of these allocations have been made directly into the accounts of the low-income families via money-transfer apps such as bKash, Nagad, etc. Keep in mind that while the lockdown is in effect, many people cannot work. This means that output of the economy is at a low level. Using a diagram, explain what effect these transfers will have on the loanable funds market. Do you expect the effect of these transfers on the loanable funds market to be large or small? Explain. Explain the effect of the lockdown on price-level and output of the economy. Illustrate using a diagram. How do these transfers change the scenario?

Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa accelerated from 6,5% to 7,4% in June 2022. As a result, the monetary policy committee (MPC) decided to increase the repurchase rate by 75 basis points to 5,50% per year, with effect from 22 July 2022. with the aid of a diagram, explain how the money market in South Africa will be affected by the MPC's decision to increase the interest rate. The direction of any changes should be clearly indicated by using arrows.

Assume the following:   Spot USDBRL = 5.0500             1YR USD Money Market Rates = 1.50%             1YR BRL Money Market Rates = 9.00%   What is the 6MO USDBRL forward rate?  (Recall that Money Market Rates are quoted as annualized rates)

You are planning to become a millionaire (i.e., save $1 M) over the next 30 years when you finally retire. a) If you are earning interest at the rate of 5% and you live 15 years after retirement, what annual level of living expenses can you afford with your savings? b) Suppose your retirement living expenses will increase at an annual rate of 3% due to inflation. Determine the annual spending plan in line with your inflation

Interpret what fy (20,30). Explain using generic units. The increase (decrease) amount made when____ stays fixed at ___ and increases from __ to __

Provide only the cash flow diagrams of these 3 items. 1. You are the manager of a large crude oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. The replacement and downtime cost in the first year is $175,000. This cost is expected to increase due to inflation at a rate of 8% per year for five years, at which time this particular heat exchanger will no longer be needed. If the company’s cost of capital is 18% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated? 2. An electronic device is available that will reduce this year’s labor costs by $10,000. The equipment is expected to last for 8 years. Labor costs increase at a rate of 7% per year and the interest rate is 12% per year. a. What is the maximum amount that we could justify spending for the device? b.…

You are just retired, You pension company promised you that they will pay you $25,000 a year for 30 years. The first payment you will receive is a year from now. The market interest rate is 5% per year. a) What is the present value of you pension if the payment you receive will be the same for 30 years? b) What is the present value of your pension if the payment you receive will grow 3% per year to combat inflation?

Recent - OneDrive X W Speech 4 Keyword X * Checklists - Fa22 X * Checklist 14 (11/2 X ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=5982801777746891646642217&eISBN=9780357133637&id=1566960330&snapshotId=... Capital One My Home ! Courses Mail - Schneider,... Catalog and Study Tools Rental Options College Success Tips Career Success Tips RECOMMENDED FOR YOU Guided Meditation: Relaxation ? Help Give Feedback Homepage - Cent... N Race Now - 100%... Problem Set 4 5. Changes in the money supply INTEREST RATE (Percent) 6.0 5.5 5.0 4.5 4.0 The following graph represents the money market for some hypothetical economy. This economy is similar to the United States in the sense that it has a central bank called the Fed, but a major difference is that this economy is closed (and therefore does not have any interaction with other world economies). The money market is currently in equilibrium at an interest rate of 4% and a quantity of money equal to $0.4 trillion, designated on the graph…

Suppose you think if you were to retire right now, you would have needed $50,000 each year to supplement your social security and maintain your desired lifestyle. But because there is on average 3% annual inflation, when you retire 30 years from now, you need more than $50,000 per year to maintain the lifestyle you like.    How much will be equivalent to $50,000 at retirement time when adjusted for inflation? What will be the face value of the bond that yields the equivalent of $50,000, found in #4 of Part B in coupon payment? How much annual payment in the retirement account is needed to accumulate the amount needed to purchase the bond when retiring?  What is the purchase power of the amount that will be received by your inheritors, measured in the current value of $ at the time of opening the retirement account?  (Hint: First calculate what the future value will be in 30 years, which is equivalent to $50,000 now and then solve the rest of the problem).

The PH debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110 million people, with the work force of around 20%.