QUESTION 1 The cost of raising funds for Netflix is 7%. An investor in Netflix, should earn a return of 93% QUESTION 2 An increase in interest rates is Neither good or bad for savers and Bad 4 for borrowers. (2 pts) QUESTION 3 + the supply of funds and Increase Recently, household saving has decreased. This will Decrease funds. (2 pts) the demand of QUESTION 4 Increase If the supply of funds decreases and the demand of funds doesn't change, the interest rate earned by savers will and the interest rate paid by borrowers will increase 4.(2 pts) QUESTION 5 If the supply of funds does not change and the demand of funds decreases, the interest rate earned by savers will Not change and the interest rate paid by borrowers will not change .(2 pts) QUESTION 6 Currently, Netflix has a bid price of $340 and an ask price of $350. If you tried to sell this stock, you would be able to sell the stock for $340 and if you wanted to buy the stock, you would pay a price of $350 4 QUESTION 7 A decrease in interest rates will Discourage savings and Encourage borrowing. (2 pts) QUESTION 8 The Fed just purchased $400 million in bonds from MSNBC Bank. MSNBC Bank is now able to make a loan of $400 million 4 to Sally. Sally deposits these funds at CNN Bank. CNN Bank is now able to make a loan of $360 million 4 to Tom. Assume a reserve requirement of 10%. (2 pts) QUESTION 9 Recently, the Fed has decided to increase the money supply by buying $450 in bonds from Banana Bank. If the process of deposit creation is not interrupted, what will be the total change in the money supply? Assume a 10% reserve requirement. (2 pts) 450