1. Sup pose, a countr y’s M-1 was Tk.54 0 Cror e and gros s natio nal pro duct (!"# was Tk.$4%1 Crore during &011. 'at is te )elocity o* +oneyi)en tat, ross !ational "roductnco+e, / = 94610000000 !o+inal Money, M = 5400000000 elocity, =? 'e know tat, V= YM¿ 94610000000 5400000000 ¿ 17.5203703 So, the required velocity of money is 17.5203703 "age 1o*
1. Suppose, a countrys M-1 was Tk.540 Crore and gross national
product (GNP) was Tk.9461 Crore during 2011. What is the velocity
of money?
Given that,Gross National Product/Income, Y = 94610000000Nominal
Money, M = 5400000000Velocity, V =?
We know that,
So, the required velocity of money is
2. Find the Average Stock Yield from the following
information:
YearPriceDividend
021415
122013.5
220012
321011.5
423010
523514
Expected Gain,
,
3. Suppose, bonds which no default risk have the following spot
Yields: a Three-year bond yields 7% and Four-Year bond Yields 9%.
What is the implied forward rate during the fourth year?
Given that,
Three year bond Yield, =7% or .07Four year bond Yield, = 9% or
.09Number of year, N =4Implied forward rate, r =?
