Nominal interest Study guides, Class notes & Summaries

ECS2603 Assignment 4 Semester 2 2023 (Solutions/answers) questions: Question 1 Answer saved Marked out of 3.00 Flag question Question text Which of the following statements with regards to inflation are correct? Inflation is defined as a sustained increase in the general price level. This implies that for inflation to occur, it is sufficient for only the price of oil to increase. Inflation is a sustained increase in the general price level. This means that there is an overall increa...

ECS1601 Assignment 4 Semester 2 2023 (SOLUTIONS/ANSWERS) Question 1 Answer saved Marked out of 1.00 Flag question Question text The distribution effects of inflation are best described by … a. the elderly benefiting at the expense of the young. b. creditors benefiting at the expense of debtors. c. borrowers benefiting at the expense of lenders. d. the poor benefiting at the expense of the rich. Clear my choice Question 2 Answer saved Marked out of 1.00 Flag question Quest...

The current Fed chair is: (A) Bernanke (B) Greenspan (C) Mnuchin (D) Powell (E) Volcker (AB) Yellen correct answers D If the nominal interest rate is 5%, and the inflation rate is 2%, then the real rate of interest is: (A) -3%. (D) 5%. (B) 2%. (E) 7%. (C) 3%. (AB) 10% correct answers C Who receives the excess profits that the Federal Reserve Bank earns from printing money? (A) The Fed chair. (B) The U.S. Treasury. (C) The Social Security Trust Fund. (D) The private banks who ...

1. On his ninth birthday on 21 February Shelly received R420. His parents immediately invested the money in an account that earns 7,5% simple interest. The amount of money that can be withdrawn on 5 June for the same year equals [1] R411,21. [2] R428,89. [3] R428,98. [4] R429,07. [5] none of the above. 2. An interest rate of 16,4% compounded quarterly is equivalent to a weekly compounded interest of [1] 16,073%. [2] 16,098%. [3] 16,714%. [4] 16,741%. [5] none of the ab...

Test Bank for Corporate Finance: A Focused Approach 8th Edition 8e by Michael C. Ehrhardt; Eugene F. Brigham. ISBN 4638 Full Chapters test bank included Chapter 1: An Overview of Financial Management and the Financial Environment 1-1 The Five-Minute MBA 1-2 Finance From 40,000 Feet Above 1-3 The Corporate Life Cycle 1-4 Governing a Corporation 1-5 An Overview of Financial Markets 1-6 Types of Claims on Future Cash Flows: Financial Instruments, Financial Assets, and Financial Sec 1-7...

CHAPTER 3 Mortgage Loan Foundations: The Time Value of Money TRUE/FALSE 1. In order to solve a compounding problem, you must know all four of the variables in order to solve for the fifth variable. (T) 2. One way to calculate the present value of a single payment is with the following formula: PV = FV * (1+i)n. (F) 3. At 6%, the present value of a $1 payment in 12 months is .. At 7%, the present value of a $1 payment in 12 months is .. (F) 4. The future value of $800 deposited ...

Inflation (definition) -ANSWER Sustained upward movement in the aggregate price level that is shared by most products. inflation= %change in price level Output Ratio -ANSWER Ratio of actual real GDP to natural real GDP -If the ratio=100%, then price level (p) is constant -If the ratio=over 100%, then price level (p) is accelerating -If the ratio=less than 100%, then price level (p) is decelerating Types of Supply Shocks -ANSWER -Changes in business input costs -Weather ...

Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? - Correct answerProtectionism Which factors predict the degree of rivalry between a pair of competitors? 2 choices - Correct answer-Market commonality and Cost structure Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize - Correct answer-Market...

What are the main services offered by financial institutions? A. Soliciting charitable donations and then managing the distribution of these funds B. Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions C. Deciding which assets to invest in to create wealth in the future D. Evaluating sources of funding for a business project, the capital structure of a firm, or actions managers could take to increase the value of the fir...

ETS MFT BUSINESS EXAM The principal difference between variable costing and absorption costing centers on: a) whether variable manufacturing costs should be included as product costs b) whether fixed manufacturing costs should be included as product costs c) whether fixed manufacturing costs and fixed selling and administrative costs should be included as product costs d) none of these. General Bikes is debating which marketing research options to employ. The traditional p...