1. Assume the reserve ratio to be 0.08 and the initial deposit to be $1,000. What is the money supply?
2. You are comparing two annuities with equal present values. The applicable discount rate is 8.55 percent. One annuity pays $6,000 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?
3. A tornado strikes your property, you lose your home which is worth $100,000 and you also lose your unattached garage which is worth $8,000 and your personal property which was inside your house which is worth $30,000. You will collect the following amount as part of your claim under your HO-5 policy form:
$108,000
$100,000
$138,000
None of the above