Assume that the reserve requirement is 10%. All other things being equal, will the money supply expand MORE if the Fed buys $1,000 worth of bonds OR if someone deposits in a bank $1,000 that she had been hiding under her mattress? If one situation creates more money, how much more does it create? Explain your answer briefly (no more than 2-3 short sentences).

You want to make an investment in a continuously compounding account over a period of two years. what interest rate is required for your investment to double in that time period? round the logarithm value and the answer to the nearest tenth.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.

You get your monthly banking statement and notice that the number is lower than expected. you decide that you should create a cash flow statement. why are cash flow statements useful in managing money? what are the steps in creating a statement?