4. Someone who has an average cash balance of $45 and spends $15 per day will visit the ATM once ineverydays.4567c
Get answer to your question and much more
POINTS:1DIFFICULTY:ModerateTOPICS:The ATM Model of the Demand forCashOTHER:Conceptual5. The cost of going to an ATM is $1 in an economy. If the nominal interest rate in the economy is 5 percent, whatisthe total cost associated with holding cash for an individual who spends $10 daily and has a 15 percent probabilityofhaving his cash lost or stolen? Assume that he visits the ATM once in every Tdays.a. (182.5/T) + (0.2 ×Tb. (182.5/T) + (0.2 ×Tc. (365/T) + (0.5 ×Td. (365/T) +ANSWER:)))Td
POINTS:1DIFFICULTY:ModerateTOPICS:The ATM Model of the Demand forCashOTHER:Conceptual6. The cost of going to an ATM is $2 in an economy. If the nominal interest rate in the economy is 1 percent, whatisthe total cost associated with holding cash for an individual who spends $15 daily and has a 9 percent probabilityofhaving his cash lost or stolen? Assume that he visits the ATM once in every Tdays.))))b
Get answer to your question and much more
POINTS:1DIFFICULTY:ModerateTOPICS:The ATM Model of the Demand forCashOTHER:Conceptual