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1- Plot on a weekly basis the ratio of currency to checkable deposits from the start of 2000 through 2002. Using the data at Microsoft
1- Plot on a weekly basis the ratio of currency to checkable deposits from the start of 2000 through 2002. Using the data at Microsoft Excel, identify the week of the downward spike in the graph. Do you think the spike reflects the currency term in the numerator or the deposits term in the denominator? Explain your reasoning. 2- In the Great Depression, the Fed allowed the money supply to decline. To confirm that the Federal Reserve learned from this lesson, plot since 2000 the M2 multiplier - the ratio of M2 to the monetary base - and, on the right axis, the level of M2. Explain how the Fed was conducting policy in order to sustain the expansion of M2. In 1989 , New Zealand became the first country to adopt an inflation target. By using the data provided to you on Microsoft Office, please complete the following tasks: - Plot the inflation rate of New Zeeland beginning in 1970. - Was inflation after 1990 lower and more stable than before? - Compute the average and the standard deviation of inflation for: the period through 1989 the period from 1990 to the present. You must write a short report summarizing your findings for the question above. The Microsoft Excel template is provided for you to calculate the cells with the "???"' (Three question marks) that should be filled with your calculations. Additionally plotted Graph should be reported in Microsoft Excel on the sheet named Graph. football teams. Mike's offers are listed as follows: Offer 1 - $942,0000 immediate signing bonus - $850,000 at the of each year for the next five years Offer 2 - \$221,000 immediate signing bonus - $100,000 at the end of years 1 through 4 $150,000 at the end of years 5 through 10 - $1,000,000 at the end of years 11 through 40 Offer 3 - $1,008,400 immediate signing bonus - $500,000 at the end of year 1 1,000,000 at the end of year 2 1,500,000 at the end of year 3 2,500,000 at the end of year 4 - $1,000,000 bonus for any year Mike is selected to play in the premier division ( 25 percent probability in each year) According to the information above, please answer the following questions. You have to show your work. For the questions below, please assume that the discount rate is 11% 1- What is the present value of all the offers today? 2- What will be the signing bonus worth today for all the contracts? 3- Which value from the TVM annuity table would you use to discount: a. Assuming the first contract: "\$850,000 each year for the next five years." b. Assuming the second contract for "\$150,000 at the end of years 5 through 10 ." 4- What is today's value of each section of all contracts? For example, the first contract is divided into two sections. The first is the signing bonus, and the second is the annuity paid until the end of the 5th year. 5- Which contract would you choose if you were Mike? Explain your reasoning 6- Will the contracts' present value be lower or higher if you increase the discount rate? 1- Plot on a weekly basis the ratio of currency to checkable deposits from the start of 2000 through 2002. Using the data at Microsoft Excel, identify the week of the downward spike in the graph. Do you think the spike reflects the currency term in the numerator or the deposits term in the denominator? Explain your reasoning. 2- In the Great Depression, the Fed allowed the money supply to decline. To confirm that the Federal Reserve learned from this lesson, plot since 2000 the M2 multiplier - the ratio of M2 to the monetary base - and, on the right axis, the level of M2. Explain how the Fed was conducting policy in order to sustain the expansion of M2. In 1989 , New Zealand became the first country to adopt an inflation target. By using the data provided to you on Microsoft Office, please complete the following tasks: - Plot the inflation rate of New Zeeland beginning in 1970. - Was inflation after 1990 lower and more stable than before? - Compute the average and the standard deviation of inflation for: the period through 1989 the period from 1990 to the present. You must write a short report summarizing your findings for the question above. The Microsoft Excel template is provided for you to calculate the cells with the "???"' (Three question marks) that should be filled with your calculations. Additionally plotted Graph should be reported in Microsoft Excel on the sheet named Graph. football teams. Mike's offers are listed as follows: Offer 1 - $942,0000 immediate signing bonus - $850,000 at the of each year for the next five years Offer 2 - \$221,000 immediate signing bonus - $100,000 at the end of years 1 through 4 $150,000 at the end of years 5 through 10 - $1,000,000 at the end of years 11 through 40 Offer 3 - $1,008,400 immediate signing bonus - $500,000 at the end of year 1 1,000,000 at the end of year 2 1,500,000 at the end of year 3 2,500,000 at the end of year 4 - $1,000,000 bonus for any year Mike is selected to play in the premier division ( 25 percent probability in each year) According to the information above, please answer the following questions. You have to show your work. For the questions below, please assume that the discount rate is 11% 1- What is the present value of all the offers today? 2- What will be the signing bonus worth today for all the contracts? 3- Which value from the TVM annuity table would you use to discount: a. Assuming the first contract: "\$850,000 each year for the next five years." b. Assuming the second contract for "\$150,000 at the end of years 5 through 10 ." 4- What is today's value of each section of all contracts? For example, the first contract is divided into two sections. The first is the signing bonus, and the second is the annuity paid until the end of the 5th year. 5- Which contract would you choose if you were Mike? Explain your reasoning 6- Will the contracts' present value be lower or higher if you increase the discount rate
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