A managing underwriter has been negotiating with ACME Corporation to underwrite a new issue of ACME common stock. The company wants to raise $100,000,000 and the underwriter intends to offer 1,000,000 shares. The underwriter has negotiated that the issuer will received proceeds of $96,000,000. The selling concession is set at $2 per share and the management fee is $1 per share. The spread per share is: A $4.00 B $3.00 C $2.00 D $1.00

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.