The currency deposit ratio is 0.5, the required reserve ratio is 0.25. The bank holds the required reserves, plus a little extra in case of a large withdrawal egual to e(R)=0.5-2R.Where R is the interest rate and it is equal to 12.5. The money supply is 600. Using the money multiplier approach calculate how many pounds worth of bonds would the Bank of England have to buy/sell in order to increase the money supply to 900? a. Sell bonds for an amount equal to $200. b. Buy bonds for an amount equal to $200. c. Buy bonds for an amount equal to $40o. d. Sell bonds for an amount egual to $250.
Answers
The Bank of England would need to buy bonds for an amount equal to $400 to increase the money supply to 900. The correct answer is option c.
To calculate the answer, first, we need to calculate the money multiplier.
The money multiplier can be calculated as :
$$\text {Money Multiplier} = \frac{1}{\text{currency deposit ratio}}$$
Here, the currency deposit ratio is 0.5.
So, $$\text{Money Multiplier} = \frac{1}{0.5}= 2$$
Now, we can calculate the maximum amount of money that can be created from the given money supply of 600. The maximum money supply can be calculated as
Maximum money supply = Money multiplier × Required reserves
= 2 × Required reserves
= 2 × 0.25 = 0.5
Thus, the maximum money supply that can be created is 0.5 × 600 = 300.
Now, we need to calculate the amount of money needed to reach the money supply of 900.
Amount of money needed = Required money supply - Initial money supply
= 900 - 600 = 300.
To calculate the value of bonds the Bank of England must buy/sell, we can use the equation of exchange as follows:
$$\text{Money supply} = \text{Reserves} \times \text{Money multiplier}$$
Rearranging the above equation, we get:
$$\text{Reserves} = \frac{\text{Money supply}}{\text{Money multiplier}}$$Initial reserves = Required reserves = 0.25 (Given)Initial reserves
= 0.25 × 600 = 150.
Now, we can calculate the required reserves to achieve the new money supply of 900:
Required reserves = Required money supply ÷ Money multiplier
= 300 ÷ 2 = 150 (Because the required reserve ratio is constant.)
So, the bank already holds the required amount of reserves. The bank must create new deposits equal to the amount of money required for the new money supply of 900. This can be achieved by buying bonds equal to the amount of money needed. Thus, the Bank of England would need to buy bonds for an amount equal to $400 to increase the money supply to 900.
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Related Questions
When the stock market as a whole is rising in value then it is referred to as a bear market. True or false?
Answers
Answer: False
Explanation: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
what is networking why is useful when looking for a job
Answers
Answer:
Career networking involves using personal, professional, academic or familial contacts to assist with a job search, achieve career goals, learn more about your field, or another field you'd like to work in. Networking can be a good way to hear about job opportunities or get in at a company you'd like to work with.
Explanation:
Networking can be a good way to hear about job opportunities or get in at a company you'd like to work with.
What are the three ways the argument section of a cover letter can be formatted
Answers
General
Ledger
Cash in Bank
Advertising
Expense
Owner
Withdrawals
Office
Equipment
Electric
Expense
Repair
Expense
Owner's
Capital
Accounts
Receivable
●
Rent Expense
Sales from
Fees
Accounts
Payable
On the form provided, provide the following information for each account.
Classify the account as an asset, liability, owner's equity, revenue, or expense account.
Indicate whether the increase side is a debit or a credit.
• Indicate whether the decrease side is a debit or a credit.
●
Indicate whether the account has a normal debit balance or a normal credit balance.
Answers
Classifying the accounts and understanding their debit/credit sides and normal balances. Sales from Fees: Revenue, Increase - Credit, Decrease - Debit, Normal Credit balance.
Here's the information for each account:
1. General Ledger: This is a record-keeping system and doesn't have a specific classification.
2. Cash in Bank: Asset, Increase - Debit, Decrease - Credit, Normal Debit balance
3. Advertising Expense: Expense, Increase - Debit, Decrease - Credit, Normal Debit balance
4. Owner Withdrawals: Owner's Equity, Increase - Credit, Decrease - Debit, Normal Credit balance
5. Office Equipment: Asset, Increase - Debit, Decrease - Credit, Normal Debit balance
6. Electric Expense: Expense, Increase - Debit, Decrease - Credit, Normal Debit balance
7. Repair Expense: Expense, Increase - Debit, Decrease - Credit, Normal Debit balance
8. Owner's Capital: Owner's Equity, Increase - Credit, Decrease - Debit, Normal Credit balance
9. Accounts Receivable: Asset, Increase - Debit, Decrease - Credit, Normal Debit balance
10. Rent Expense: Expense, Increase - Debit, Decrease - Credit, Normal Debit balance
11. Sales from Fees: Revenue, Increase - Credit, Decrease - Debit, Normal Credit balance
12. Accounts Payable: Liability, Increase - Credit, Decrease - Debit, Normal Credit balance
I hope this helps you understand the classification, debit/credit sides, and normal balances of each account!
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4. What celebrity (artist) endorsed Magnises?
Answers
Magnises is a social club that was founded in 2014 by Billy McFarland. The club offered its members exclusive access to various events and services, including concerts, private jet trips, and hotel discounts.
One of the ways that Magnises attracted new members was through celebrity endorsements. While Magnises did not have any official celebrity endorsers, the company did have several high-profile members, including musicians and actors. One of the most notable members was Ja Rule, a rapper and actor who co-founded the ill-fated Fyre Festival with Billy McFarland. Other musicians who were reportedly members of Magnises included Young Thug, Rick Ross, and Lil Wayne. These artists may have indirectly endorsed the social club by being associated with it, but there is no evidence that they were paid to promote Magnises.
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You are a financial analyst constructing a multiyear proforma to value a potential property acquisition. As part of the analysis, you are considering the most likely scenario for a certain space for which the current tenant’s lease will expire at the end of 2028. You estimate the following: the probability the existing tenant renews is 50 percent; if the tenant renews, you will need to spend an estimated $5.00/SF to upgrade the space; should the tenant not renew, it will take $15.00/SF to modernize the space for a new tenant; and you expect there will be six month of vacancy. Leases in this property are "triple-net" with the owner responsible for operating expenses associated with vacant space. Operating expenses are expected to be $5.50 in 2029, while market rent for triplenet leases is expected to be $14/SF. What is the expected property before-tax cash flow forecast (on a per sq. ft. basis) you will put in year 2029 of your proforma for this space?
Answers
The expected property before-tax cash flow forecast for the space in the year 2029, 0.625 on a per sq.
To calculate the expected property before-tax cash flow forecast for the space in the year 2029, we need to consider the different scenarios and their probabilities. let's break down the calculation step by step:
1. calculate the probability-weighted cash flows for each scenario:
scenario 1: existing tenant renews- probability: 50%
- cash flow: market rent - operating expenses - upgrade cost
cash flow = ($14/sf - $5.50/sf) - $5.00/sf
scenario 2: existing tenant does not renew- probability: 50%
- cash flow: market rent - operating expenses - modernization cost - vacancy cost
cash flow = ($14/sf - $5.50/sf) - $15.00/sf - 0.5 * ($14/sf - $5.50/sf)
2. calculate the expected cash flow by averaging the probability-weighted cash flows from both scenarios:
expected cash flow = (0.5 * cash flow scenario 1) + (0.5 * cash flow scenario 2)
now let's calculate the expected property before-tax cash flow forecast for the space in 2029:
expected cash flow = (0.5 * [($14/sf - $5.50/sf) - $5.00/sf]) + (0.5 * [($14/sf - $5.50/sf) - $15.00/sf - 0.5 * ($14/sf - $5.50/sf)])
expected cash flow = (0.5 * $3.50/sf) + (0.5 * ($3.50/sf - $4.75/sf))
expected cash flow = $1.75/sf - $2.375/sf
expected cash flow = -$0.625/sf ft. basis, is -$0.625.
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Which statement best describes the economic relationship between
households and product markets?
A. Households buy goods from product markets.
B. Households provide goods to product markets.
O c. Product markets supply households with natural resources.
O D. Product markets purchase resources from households.
Answers
The economic relationship between households and product markets is best described by the statement that households provide goods to product markets.
How do households and product markets interact economically?Households purchase goods and services from businesses via the product market. Meanwhile, businesses necessitate resources to create goods and services.
Through the resource market, members of households provide labor to businesses. Businesses then replace those resources into goods and services.
Therefore, option b is correct.
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According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a
Answers
Answer: See explanation
Explanation:
The journal entry to record accrued salaries would be calculated thus:
Dr FICA expenses $34500
Dr Federal unemployment tax $120
Dr State unemployment tax $630
Cr FICA tax payable $34500
Cr Federal unemployment tax payable $120
Cr State unemployment tax payable $630
Note:
Social security tax = $450000 × 6% = $27000
Medicare tax = $500000 × 1.5% = $7500
FICA tax = $27000 + $7500 = $34500
Federal unemployment tax = $15000 × 0.8% = $120
State unemployment tax = $15000 × 4.2% = $630
5x - 3y = 8
9 + 7y - 126
Answers
Answer:
x=7
y=9
Explanation:
:)
Steps in growing a good business?
A.) Rush everything and spend everything.
B.) Save up but work half way.
C.) Become a Good leader and work and save up.
Answers
Which represents the greatest acceleration?
200 m/s
200 cm/s2
0.020 km/s2
0.002 km/s2
Answers
Answer:
(3) 0.020km/s²
Explanation:
The option with greatest acceleration is the one with greatest magnitude.
To do this, we have to analyse each if the given options.
1. 200m/s.
This doesn't represent acceleration because acceleration is not measured in m/s. Rather, this option is a measure of velocity..
2. 200 cm/s²
[Convert to m/s²]
= 200 / 100 m/s²
= 2 m/s²
3. 0.020 km/s²
[Convert to m/s²]
= 0.020 * 1000m/s²
= 20m/s²
4. 0.002 km/s²
[Convert to m/s²]
= 0.002 * 1000 m/s²
= 2m/s²
By comparison options 1 through 4, option (3) has the highest magnitude of acceleration.
Hence, 0.020km/s² is the highest acceleration
Think of a favorite product that you have. What do you think ALL of the things are that have to happen before you see the product in the store?
Answers
The transformation of raw materials into finished goods. Natural items are transformed into goods that can be sold on the market through manufacturing.
What are the initial steps ?The acquisition and monitoring of raw materials is the initial step in inventory management. The environment can be mined for raw materials or they can be purchased from sources. Once received, raw materials must be kept in storage until they are needed for manufacturing. Systems of inventory keep track of the quantity, location, and state of each raw item.
Work in process refers to the production process from storage to the assembly line. Production might be carried out internally or contracted out to manufacturers. Inventory management systems monitor the production process and the finished goods as they are produced in both scenarios.
The number, location, and state of each end product must be monitored. The system is updated in response to product purchases to account for the drop in inventory following distribution.
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how can interest rate on loan for rental property determine the rent
Answers
what is integrity
A.the attitude that you are better than others
B.The belief in your own ability to do well
C.The ability to come up with new plans or ideas
D.The practice of using ethical behavior
Answers
Answer:
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C.The ability to come up with new plans or ideaswhich of the following capital investment models would be preferred when choosing among mutually exclusive alternatives? a.accounting rate of return b.npv c.irr d.payback period
Answers
Choosing between projects that are mutually exclusive is done using IRR, not NPV. As a result, choice c is right.
We have seen both the benefits and drawbacks of the two approaches. However, NPV is far superior to IRR. 1. The single discount rate assumed by IRR is not the case in practice.
IRR is a measure that is used to examine capital budgeting projects and assess real estate over time. Investors, company managers, and real estate experts all utilize IRR to assess profitability. Continue reading if you're interested in learning how others make wise investments. The method can be applied either ex-post or ex-ante.
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On a large college campus first-year students and sophomores live in dorms located on the eastern part of the campus and juniors and seniors live in dorms located on the western part of the campus. suppose you want to collect student opinions on a new housing structure the college administration is proposing and you want to make sure your survey equally represents opinions from students from all years.
Answers
Remainder Part:
(a) What type of study is this?
(b) Suggest a sampling strategy for carrying out this study?
Answer:
A. Observational Study
B. Stratified Sampling
Explanation:
Requirement A. I have to carry an Observational study because in the observational study the observer does not interfere with the variables or the subjects. Hence all I have to do here is just collect the opinions of the students.
Requirement B. The stratified sampling method is the method that includes the representation from every small strata (Group) which helps in assessing the complete sample because samples are extracted from each small separate group. Hence it is the best available option when the sample is the mixture of different small groups. In this case, the small groups would be first year, second year, Business student, Science student, etc.
To make sure that my survey reflects the opinions of students of all grades equally, I survey the following:
A. Observational Study
B. Stratified Sampling
Now my research will go as follow:
Observers in observational studies do not interfere with variables or subjects, so I have to do observational studies. So we need to hear the students' opinions here.
Stratified sampling is a method that includes a representation of each sublayer (group), and because the sample is extracted from each subgroup, it is useful for evaluating the entire sample. Therefore, it is the best option available when the sample is a mixture of different small groups. In this case, the small group will be 1st grade, 2nd grade, business students, science students, etc.
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assume the beta for the stock market in general is 1.0 and the beta for world-wide television productions is 2.4. if the stock market increases in value by 10 percent, what is the expected increase in value for the world-wide productions stock? group of answer choices 14 percent 48 percent 24 percent 20 percent 12 percent
Answers
24 percent, Assume that World-Wide Television Productions' beta is 2.4 and that the beta for the stock market as a whole is 1.0. The predicted rise in value for the World-Wide Productions shares is 24% if the stock market appreciates by 10%.
Consider the stock market as a network of stock exchanges where investors and traders may buy and sell shares of publicly listed corporations. This is a simple way to think about the stock market. A procedure known as an initial public offering allows private firms to list shares of their stock on a market (IPO). The investment includes real-time trading of the stocks of the firms, making it also referred to as a "stock market." Primary and secondary stock markets are two different categories. Please be aware that it only deals in shares, whereas the stock market deals in bonds, derivatives, and foreign exchange, and that both markets operate in different ways.
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Alright y'all, I made a cover for my powerpoint, for a school project, and it took me an embarrassingly long time to make. Please give me some feedback on it. What do you like and what don't you?(There's no wrong answer, but please give a relevant one because I really want to know what y'all think.)
Answers
Answer:
I saw the pic. I think it looks great :)
Explanation:
Also it doesn't matter how long it took, I bet it feels good knowing you made that yourself.
will be marked the brainlist plz help
- Which business structure should they adopt for their new business and explain and state the costs and benefits of your advice.
Jayden, Andrew, and Mateo have been close friends since they met freshman year in college. They all graduated last year- Jayden with a degree in Computer Science, Andrew with a degree in Graphic Design, and Mateo with a degree in Business Administration. All three are computer whizzes and have worked part-time through high school and college fixing computer problems. Each has
approximately $50,000 in savings for this business venture. They have been talking about starting a computer company (JAM Computer Solutions) in their local town to help businesses and individuals with computer problems or those who need
help developing and designing websites. In doing research, Jayden found that there are only two other computer companies in their town of 100,000 people,
and neither one will do both web design and computer hardware/software troubleshooting.
Answers
Jayden, Andrew, and Mateo should adopt a S corporation business structure.
What is a S corporation?A S corporation is a special type of corporation that avoids double taxation of regular C corporations. As S corps because profits and losses pass directly through the owners's personal income. This business structure implies the income of the owners are not subject to higher corporate tax rates.
Thus, by avoiding corporate tax rates, Jayden, Andrew, and Mateo will avoid double taxation and pay less in taxes, especially until the company develops fully.
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Let's say that the economy consists of 100 people. Each person is to divide 1 unit of time between work and leisure given the wage rate w (paid on the labor market). Each person also receives dividends of T. The final total profit of this firm is n. The person's utility function depends on consumption c and leisure I and it is assumed to satisfy u(c, l) = 0 ln(c) + (1 - 0) ln(l), where 0 € (0, 1). On the flip side of the market, there are firms who hire workers and produce output. The representative firm operates with a Cobb-Douglas production technology Y = 2K ¹N ², Z = total factory productivity K = fixed amount of capital. Each of these firm's employees receive a wage of w (total labor cost of the firm is equal to wN). The profit is then given back equally to the shareholder as dividend income. G=0 0=3,2=1, K = 1600. Let's say initially 1. Write the equation that will show relation between each person's dividend income and firms total profit П. 2. Write the consumers budge constraint and maximization problem. Plot these 3. Write down the maximization problem of the firm. 4. Write down the government budget constraint. 5. Find the equilibrium price w, allocations c, N
Answers
The equation T = П / 100 relates each person's dividend income (T) to the firm's total profit (П), distributing profit equally among the 100 individuals.
The consumer's budget constraint, c + w - T = 1, constrains consumption (c), wage income (w), and dividend income (T), while the maximization problem aims to optimize utility subject to the budget constraint. Firm maximization problem and equilibrium price w are not provided.
The equation T = П / 100 represents the relationship between each person's dividend income (T) and the firm's total profit (П). Since there are 100 people in the economy, the total profit is divided equally among them, resulting in each person's dividend income being equal to the total profit divided by 100.
The consumer's budget constraint, c + w - T = 1, defines the limitations on the individual's consumption (c), wage income (w), and dividend income (T). It states that the sum of consumption, wage income, and dividend income should equal 1 unit of time available to each individual, indicating that all income must be allocated between consumption, leisure, and other expenses.
The consumer's maximization problem involves maximizing the utility function u(c, l) = 0 ln(c) + (1 - 0) ln(l), where c represents consumption and l represents leisure. The objective is to find the combination of consumption and leisure that maximizes the individual's utility, subject to the budget constraint. By solving this problem, the optimal levels of consumption and leisure can be determined.
The information provided does not include the maximization problem of the firm, which would involve determining the optimal combination of inputs (capital and labor) to maximize output or profit based on the Cobb-Douglas production technology given.
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3. Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in question?
a
A subordination clause in a debenture.
b
A call provision.
c
A convertible feature.
d
Having relatively few restrictive covenants.
e.
All of the above.
Answers
The bond in question's coupon interest rate would typically be reduced by a convertible feature.
Define the term "convertible feature"?An asset that can be changed by the shareholder into common stock is known as a convertible, which can be a bond, preference share, or other type of financial instrument. Convertible securities aren't considered to be either debt or equity; rather, they're viewed as a cross between the two groups because they have the cash flow characteristics of both bonds and stocks.
What distinguishes a convertible bond from other bonds?An investment that may be converted into a predetermined number of shares of common stock is known as a convertible bond. It pays fixed-income interest payments. During the bond's term, the bond can be converted into stock at precise points at the bondholder's option.
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for human services pleaseeeeeeeeeeee help <3
Answers
Answer:
gghddhshdjshsjgsgsgshsnssmadWhich factor doesn’t describe management as science
Answers
Which of the following statements is CORRECT?a. Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.b. A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.c. A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.d. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.e. A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.
Answers
Answer:
a. Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
Explanation:
Diversifiable risk can as well as be regarded as unsystematic risk, it is specific risk of a firm which impacts the price of the stock of individual rather than affecting the industry as a whole or sector where the the firm is carrying out it's operation. It a risk whereby there is possibility that change in the price of a security will be experienced because of the specific characteristics that the security have. It should be noted that Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
Describe how the U.S. private enterprise economy works
Answers
Answer: Go ahead and copy and paste
Explanation: As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. Producers take production initiative on the basis of price and profit-and-loss signals essentially given by consumers.
Answer:
As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. Producers take production initiative on the basis of price and profit-and-loss signals essentially given by consumers. ... Private enterprise is open to all comers.
Give an overview of the Key Performance Indicators (KPI) that your organisation uses in evaluating the performance of its suppliers
Answers
These Key Performance Indicators (KPIs) may vary based on the industry, organizational goals, and specific supplier relationships. Some commonly used KPIs in supplier performance evaluation are on-time delivery, quality performance, and financial stability.
On-time Delivery: This KPI measures the supplier's ability to deliver goods or services according to the agreed-upon schedule.
Quality Performance: This KPI evaluates the quality of the products or services provided by the supplier.
Financial Stability: This KPI assesses the financial health and stability of the supplier.
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Shelley was initially moderately in favor of a proposal to build a city bike path. At a meeting, she learns that not only will the path provide recreational opportunities and allow for some decrease in traffic, but that in towns with paths, the crime rate tends to go down and businesses along the path do better. She is now strongly in favor of the proposal. The theory that best explains her change of opinion is the __________ theory.
Answers
Answer:
The appropriate response is "Persuasive arguments".
Explanation:
A noninteractional concept or philosophy of community judgment predicting choice results via cognitive or conceptual claims produced by individuals before the debate is determined as Persuasive arguments theory.It doesn't see dialogue as an important element of judgment results, although as a potential mechanism for facilitating communication.Thus the above is the right answer.
The set of all possible outcomes of a probability experiment is called Select one: a. Event b. Outcome c. probability experiment d. Sample Space.
Answers
The set of all possible outcomes of a probability experiment is called sample space.
What is a sample space?A sample space is a set of all potential results from a probability experiment. It specifies the collection of all possible occurrences in an experiment. In probability, the sample space is significant because it gives a clear and comprehensive perspective of all potential outcomes, allowing the chance of each occurrence to be calculated.
A sample space's size is determined by the number of items it includes and might be limited or infinite. To assign probabilities to events, the sample space must be properly specified, and all events must be mutually exclusive and exhaustive, which means that they must not overlap and must cover all potential outcomes.
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How much is a standard tip?
•10-15 percent
•15-20 percent
•20-25 percent
•25-30 percent
Answers
In the course of the communication process, which of the given steps logically follows after the listener receives the message sent by the communicator?
Answers
Answer:
b. Interpreting the message
Explanation:
As we know that the communication process involves sender, encoding, message, receiver, decoding and feedback
After the listener received the message sent by the communicator the step that is followed is message interpreted that means how the message would be interpreted it would be the same as the sender send to the receiver or it would be in understanding in a different way
Hence, the correct option is b.