Brenda Olivia Adams starts her own bank, called BOA. As owner, Brenda puts in $2,000 of her own money. BOA then borrows $3,000 in a long-term loan from Brenda’s roommate, accepts $5,000 in demand deposits from her neighbors, buys $1,000 of corporate bonds, lends $6,000 to local businesses to finance new investments, and keeps the remainder of the bank’s assets as reserves at the Fed.

An economic downturn causes 10 percent of the local businesses to declare bankruptcy and default on their loans. Show BOA’s new balance sheet. By what percentage does the value of BOA’s assets fall? By what percentage does BOA’s capital fall?

BOA Assets Liabilities Reserves $3000Deposits $5000 Loans $ Debt $3000 Securities $1000 Capital $ Total $ Total $ Percentage decline in value of assets = % Percentage decline in value of capital = %

Suppose that there are drastic technological improvements in shoe production in Home such that shoe factories can operate almost completely with computer-aided machines. Consider the following data for the Home country:

Computers Shoes Sales revenue = PCQC = 100 Sales revenue = PSQS = 100 Payments to labor = W LC = 50 Payments to labor = W LS = 10 Payments to capital = RKC = 50 Payments to labor = RKS = 90 Percentage increase in the price = ∆PC PC = 0% Percentage increase in the price = ∆PS PS = 40%

a. Which industry is capital-intensive?

b. Given the percentage changes in output prices in the data provided, calculate the percentage change in the rental on capital.

c. How does the magnitude of this change compare with that of change in the earnings of labor?

d. Which factor gains in real terms, and which factor loses? Are these results consistent with the Stohlper-Samuelson theorem?

1. Suppose that there are drastic technological improvements in shoe production in Home such that shoe factories can operate almost completely with computer-aided machines. Consider the following data for the Home country:

Computers:       Sales revenue = ?_c?_? = 100

Payments to labor = ??_? = 50

Payments to capital = ??_? = 50

Percentage decrease in the price = ∆?_?⁄?_? = -10%

Shoes:                 Sales revenue = ?_??_? = 100

Payments to labor = ??_? = 20

Payments to capital = ??_? = 80

Percentage increase in the price = ∆?_?⁄?_? = 30%

1. Which industry is capital-intensive? Is this a reasonable question, given that some industries are capital-intensive in some countries and labor-intensive in others?
2. Given the percentage changes in output prices in the data provided, calculate the percentage change in the rental on capital.
3. How does the magnitude of this change compare with that of labor?
4. Which factor gains in real terms, and which factor loses? Are these results consistent with the Stolper–Samuelson theorem?

Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 11 years to maturity.

If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 9.92% -9.68% -9.66% -10.72%

If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? -29.99% -23.07% 25.11% -23.05%

If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? 11.02% 9.92% 11.00% -9.63%

If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 33.53% -23.02% 33.51% 25.11%

The Canadian Tobacco Monitoring Survey is a national survey administered by Statistics Canada to study smoking trends of Canadians aged 15 or older. The most recent survey found that 20.25% of Canadians aged 15 years or older smoke on a daily basis. In addition, 24% of men are smokers, and 16.5% of women are smokers.

The most recent census shows that men make up 50% of the Canadian population, with women making up the remainder.

You randomly pick a Canadian that is 15 years old or older. What is the probability this person

Part (a) is male and a smoker?

(Use four decimals in your answer)

Part (b) is a women and not a smoker?

(Use four decimals)

Part (c) What percentage of smokers are male?

%(enter your percentage to two decimals)

Part (d) What percentage of smokers are women? %

% (enter your percentage to two decimals)

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:

​

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Assume that the distribution of differences is approximately normal, mound-shaped and symmetric. Use a 10% level of significance. Find (or estimate) the P-value.

​

Please give me detailed formula. I keep calculating the wrong way. An institute reported that 65​% of its members indicate that lack of ethical culture within financial firms has contributed most to the lack of trust in the financial industry. Suppose that you select a sample of 100 institute members.

Complete parts ​(a) through ​(d) below.

a. What is the probability that the sample percentage indicating that lack of ethical culture within financial firms has contributed the most to the lack of trust in the financial industry will be between 58​% and 73​%? ​____ and ______(Type an integer or decimal rounded to four decimal places as​ needed.)

b. The probability is 60​% that the sample percentage will be contained within what symmetrical limits of the population​ percentage? The probability is 60​% that the sample percentage will be contained above ______​% and below _______%. ​(Type integers or decimals rounded to one decimal place as​ needed.)

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data: B: Percent for company 21 11 16 20 5 8 4 22 A: Percent for CEO 18 5 14 22 10 12 1 17 Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 1% level of significance. What is the value of the test statistic? Select one: a. -0.730 b. -0.683 c. 0.683 d. 0.730 e. -0.639

Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 12 years to maturity. (Do not round your intermediate calculations.)

Requirement 1:

(a) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam?

(Click to select)

(b) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave?

(Click to select)

Requirement 2:

(a) If rates were to suddenly fall by 4 percent instead, what would be the percentage change in the price of Bond Sam be then?

(Click to select)

(b) If rates were to suddenly fall by 4 percent instead, what would be the percentage change in the price of Bond Dave be then?

(Click to select)