Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U. S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is: a. not directly affected, but the money-creating potential of the commercial banking system is increased by $12 million.
b. directly reduced by $4 million and the money-creating potential of the commercial banking system is decreased by an additional $12 million.
c. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $16 million.
d. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $12 million.

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?

Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?