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Assume that all banks follow the same required reserve ratio requirement. Also assume that the banks are listed in sequential order Answer

1. Assume that all banks follow the same required reserve ratio requirement. Also assume that the banks are listed in sequential order (thus the loans from The First National Bank become the deposits for the Second National Bank, and the loans from the Second National Bank become the deposits for the Third National Bank, and so on). Also, the banks’ balance sheets must always be balanced so total assets must equal total liabilities.

 

Table: National Banks

1st National Bank

ASSETS LIABILITIES
Required reserves $26,000 Deposits $520,000
Loans 494,000
TOTAL 520,000 TOTAL 520,000

 

2nd National Bank

ASSETS LIABILITIES
Required reserves 98,800 Deposits           494,000
Loans 395,200
TOTAL 494,000 TOTAL           494,000

 

3rd National Bank

ASSETS LIABILITIES
Required reserves 79,040 Deposits           395,200
Loans 316,160
TOTAL 395,200 TOTAL           395,200

 

a.       Using the above table of national banks, fill in the spaces for (1) required reserves, (2) deposits, and (3) loans for each bank. Then answer the following questions.

 

b.      What is the initial money multiplier in this country?

 

Required reserve ratio= 26000/520000= 0.2 Or 20%

Multiplier= 1/.2= 5

 

c.       Now suppose that banks are worried about an increased demand for withdrawals, so each bank maintains an extra 3 percent of deposits over and above required reserves. What is the effective money multiplier now?

The money multiplier= 1/.23= 4.3478

d.      What problem with monetary policy is illustrated by this question?

 

This shows that the money supply changes according to the required reserves ratio as well as the banks’ own reserves estimate. The central bank can not dictate how money supply will change as banks can keep more than required funds as reserves. This lowers the amount available for loans. This defeats the central bank policy of changing money supply by changing the reserve requirement. Monetary policy becomes ineffective then.

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We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices Answer

We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double?

 

Solution

To find the number of year we will user NPER function in excel. Since the amount should be double we will used present value of 100 and Future value of 200 in the formula

Rate     20.00%            ← Growth Rate

PMT    0          ← 0

PV       -100     ← Present value assumed 100

FV       200      ← Future value 2 x 100 = 200

Year    3.801784017   ← Select Cell to see calculation. =NPER(20%,0,-100,200)

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Explain the thinking process you used to identify the categorical propositions in these syllogisms Answer

“Syllogisms” Please respond to the following:

The following discussion questions refer to the activity assigned under the “Readings” section for this week.

  • Explain the thinking process you used to identify the categorical propositions in these syllogisms.
  • Identify any premises or conclusions with which you did not agree or which you believe to be false.
  • Explain whether you found any syllogisms which appeared to be valid or invalid and why you think this is the case.
  • Diagram one of the syllogisms in Activity 9.1 or 9.2. Describe what your Venn diagram revealed. Explain whether you thought this method was useful or challenging.
  • Explain the thinking process you used to identify the categorical propositions in these syllogisms.

Ans: A categorical syllogism (in standard form) is a syllogism whose every claim is a standard-form categorical claim and in which three terms each occur exactly twice in exactly two of the claims. Study the following

example:

All Americans are consumers.

Some consumers are not Democrats.

Therefore, some Americans are not Democrats.

In a categorical syllogism, each of the premises states a relationship between the middle term and one of the other terms

  • Identify any premises or conclusions with which you did not agree or which you believe to be false.

Ans: I think the below argument is false.

All valid arguments are good arguments.

Some valid arguments are boring arguments.

 

Therefore, All good arguments are boring arguments.

Here the conclusion “Therefore, All good arguments are boring arguments.” is wrong. It should be “Therefore, some good arguments are boring arguments.”

  • Explain whether you found any syllogisms which appeared to be valid or invalid and why you think this is the case.

Ans: The below syllogism is invalid.

Some people on the committee are not students.

All people on the committee are local people.

Therefore, some local people are nonstudents.

This argument is okay up to the conclusion, which contains a term that does not occur anywhere in the premises: “nonstudents.” However, because “nonstudents” is the complement of “students,” this argument can be turned into a proper syllogism by obverting the conclusion, producing “Some local people are not students.”

  • Diagram one of the syllogisms in Activity 9.1 or 9.2. Describe what your Venn diagram revealed. Explain whether you thought this method was useful or challenging.

Ans: Venn diagrma is a graphical way to diagram the syllogismm and in my opinion, it is quite helpful.

Here is an example of a sound argument (taken from the chapter):

(1) All human beings are mortal.

(2) Ann is a human being.

(3) Therefore, Ann is mortal.

In this example, the premises are true. At least as far as we know, all human beings are indeed mortal. So that is true. And the claim that Ann is a human being is, again as far as we know, true. Given those two statements, or premises, does the conclusion follow? If human beings are mortal, and Ann is a human being, does it have to be the case that Ann is mortal? Yes. The argument is valid. The conclusion follows from the premises. And furthermore, since the premises are true, the argument is also sound. A sound argument means: the premises are true and the conclusion is valid.

If you are trying to determine if the conclusion does not follow, try and think of possible alternatives. If human beings are mortal, and Ann is a human being, what else could she be but mortal? Could she be immortal? No, because we’ve stated that human beings, of which Ann is one, are mortal. In this example, it is absolutely certain that the conclusion is valid. It could not be otherwise.

The examples I’ve given are those of deductive arguments. Why folks like deductive arguments so much are that, if the premises are true, they lead to absolute certainty. In my next post, I’ll talk about inductive arguments, where we don’t deal with certainty, but with probability. In these arguments, the creative element becomes much more pronounced; you have to try and think of all the possible alternatives to a conclusion that is only probable, not certain.

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What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation Answer

What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?

The advantages of using parallel simulation is the tests can be run independently. The sample size is not costly to expand and real data is used so it allows verification to source documents.

The disadvantage could be the client’s software out preforms the auditor’s software or the auditors needs to be trained to understand the clients programs.

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The fourth amendment to the USA constitution protects people against warrantless searches and seizures Answer

The fourth amendment to the USA constitution protects people against warrantless searches and seizures. This protection, though applying to both arrests and seizures does not apply to the arrests with as force as to seizures. In the absence of certain exigent circumstances a warrantless search violates the fourth amendment. However, the warrant requirement is not strictly applicable in case of the arrests. It has been held by the US Supreme Court that a warrantless public arrest does not violate the fourth amendment. However, the court has left the discussion on a warrantless non-consensual entry into a private residence for the purpose of arrest open. In the United States V Watson case, the Supreme Court held that the fourth amendment allows for a public warrantless arrest even in the absence of exigent circumstances. It even reversed the Ninth Circuit holding. The Ninth Circuit court had held that the arrest was a violation of the fourth amendment because of the absence of warrant. The Supreme Court in this regard primarily relied on previous Supreme Court cases, common law and the federal and state statutes

In the Devenpeck et al. v. Alford case also the Supreme Court held that A warrantless arrest by a law officer is reasonable under the Fourth Amendment if, given the facts the officer knows, there is a probability to believe that a crime has been or is being committed. In the Dorman V United States case also the entry for arrest was found lawful by the Supreme Court, thereby creating certain exceptions to the general rule that warrantless entries to effect an arrest are unconstitutional. The entry in this case was found lawful, however pertaining to certain exigent situations. The opinion in this case listed six requirements which could be useful to determine if the need for a warrant can be dispensed with in a given case. These considerations included:

  1. gravity of the offense,
  2. reasonableness of the belief that the suspect is armed,
  3. clearness of the showing of probable cause,
  4. reasonableness of the belief that the suspect is on the premises,
  5. likelihood of escape
  6. peacefulness of the entry.

References:

O’Connor, D. (1978). Warrantless Arrests in Homes: Another Crisis for the Fourth Amendment. In FORDHAM URBAN LAW JOURNAL. Retrieved August 6, 2014, from http://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=1120&context=ulj

 

 

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How would you determine the viral mechanism and product associate with the development of leukemia

  1. a) How would you determine which portion of the genome is associated with the development of leukemia?

The desired task could be accomplished with the help of tools and techniques relevant with genomics and proteomics. For instance, since virus is not able to generate Leukemia in the absence of a particular genomic fragment thus, this fragment must be linked with infection. The exact composition as well as position of this segment in virus could be identified via nucleotide sequencing and alignment techniques like BLAST and Clustal W.

Conversely, in vitro techniques related with the same purpose include Sanger (dideoxy) method, Maxam-Gilbert (chemical cleavage) method, and Polymerase Chain Reaction (PCR). After sequencing, the fragment could be mutated at various locations through site-specific mutagenesis technique and thus mutated gene might be introduced into a range of host cells with the help of suitable vectors. Via comparative analysis of proteins produced by the host cells and their relevancy with infection (if any), the exact genomic sequence (present on that 20% genomic fragment) leading towards infection could be identified.

  1. b) How would you determine the viral mechanism and product associate with the development of leukemia?

Infection caused by virus can be recognized by analyzing the sequence of viral protein, its folding pattern, and through recognition of (i) its receptor, (ii) protein-receptor interaction mechanism, (iii) factors promoting/ inhibiting the interaction, and via (iv) detecting the signaling pathway (s) relevant with viral infection. All above tasks could be performed through implementing suitable strategies shaped for evaluation of interaction between protein and its receptor (like protein-binding assay) and for examination of signaling pathway (s)

 

activated by it. For example, novel NMR spectroscopic technique can be applied to accomplish this mission which may recognize such binding events and could generate resonance signals of ligand as well as protein. Besides, fluorescent nano-sensors could also solve this purpose.

References

Anderson, R., King, A. D. & Innis, B. L. (1992). Correlation of E protein binding with cell susceptibility      to dengue virus infection. Journal of General Virology. 73; 2155-2159.

Cohen, M. S. (1982). Epidemic hemorrhagic fever revisited. Reviews of Infectious Diseases 4; 992-995.

Gonzalez, S. F., Shope, R. E., Calisher, C. E. & Nathanson, N. (1982). Characterization of monoclonal        antibodies against the G1 and N proteins of La Crosse and Tahyna, two California serogroup    bunyaviruses. Virology. 120; 42-53.

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Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements Answer

Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements and which technical requirements are related. Use “√” to show the relation and “x” to indicate that there is no relation.

To get the Answer for the above tutorial, please click on the below purchase link:

 

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You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.21%. What is the bond’s yield to maturity Answer

You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.21%. What is the bond’s yield to maturity?

Ans:

Years to Maturity 5
Annual Payment $80.00
Current price $974.42
Par value = FV $1,000.00
   
Going rate, rd =YTM: 8.65%
Annual Payment $80.00
Current price $974.42
   
Current yield: 8.21%

 

Bond’s yield to maturity = 8.65%

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In China, many people are removing their money from the state banks and lending it out themselves Answer

In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one-half the rate of inflation. On the other hand, loaning money to friends, relatives and, even unrelated entrepreneurs can often earn the investor double or more over the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Judge whether marketing occurred in this situation and justify your conclusions. Appraise the effectiveness of government regulation in controlling markets.

Answer:

Four factors that is required for marketing to occur. (1) There must be two or more parties with unsatisfied needs. The lenders want to receive a higher interest rate on their funds and the businesses need short-term loans. (2) There must be a desire and an ability to satisfy those needs. The lenders want to receive a higher interest rate on their funds and the businesses need short-term loans. The money is available, since the lenders removed it from the state banks. (3) There must be a way for the parties to communicate. Word-of-mouth from the gray market, an underground network, allows communication between the lenders and businesses. (4) There must be something to exchange. Cash was exchanged in the form of loans, repaid with interest. So, we see that marketing did occur.