What is an interest rate? Explain how interest rates may be unrelated to money or financial...
|
What is an interest rate? Explain how interest rates may be unrelated to money or financial assets? How are interest rates are determined? Why do we observe a number of interest rates in the economy rather than a single interest rate? What are some of the reasons interest rates vary? |
Homework Answers
Interest rate:It is an percentage charged by the Lender : It is compensation paid for using the lender assets ...
interest rate is unrelated to money and Financial assets What is an Financial asset ..Like debtor is an financial asset … Which the compensation for the assets used by debtor then he need not pay any extra for assets …
Interest rates are determined based on the expected return what market if looking for …. or based on the risk of investment …
There are no of interest rate like risk free interest rate , Since risk in not same on all the investment so interest rate vary based up o the nature of risk involved ...
1. Risk of investment...
2. Inflation ..etc
Add Answer to:
What is an interest rate? Explain how interest rates may be
unrelated to
money or financial...
1. What is the cost of money, and how is it determined? What factors affect the...
1. What is the cost of money, and how is it determined? What factors affect the cost of money? 2. What is a yield curve? Why do yield curves differ? 3. Discuss the explanations for various shapes of yield curves. How can yield curves by used to forecast future interest rates? How does the Federal Reserve change the money supply in the United States? What actions would the Fed take to increase interest (decrease) rates? 5. How does general business...
Mexican interest rates are normally substantially higher than U.S. interest rates. a. Assuming that interest rate...
Mexican interest rates are normally substantially higher than U.S. interest rates. a. Assuming that interest rate parity exists, do you think hedging with a forward rate would be beneficial if the spot rate of the Mexican peso was expected to decline slightly over time? b. Would hedging with a money market hedge be beneficial if the spot rate of the Mexican peso was expected to decline slightly over time (assume zero transaction costs)? Explain. c. What are some limitations on...
1. Why are financial markets important to the health of the economy? 2. When interest rates...
1. Why are financial markets important to the health of the economy? 2. When interest rates rise, how might businesses and consumers change their economic behaviour? 3. How can a change in interest rates affect the profitability of financial institutions? 4. Is everybody worse off when interest rates rise? 5. What effect might a fall in stock prices have on business investment? 6. What effect might rise in stock prices have on consumers’ decisions to spend? 7. How does a...
short answer required 3. Suppose that velocity of money and output are . Gulf constant and the fresher effect both hold what happens to inflation real interest rate and nominal interest rate when...
short answer required
3. Suppose that velocity of money and output are . Gulf constant and the fresher effect both hold what happens to inflation real interest rate and nominal interest rate when the money supply growth rate increases from (096) to (5%)? 4. Why might a favorable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase frictional unemployment? 5. How young population effect economic development? 6....
“Interest rates can be measured more accurately and more quickly than money supply. Hence interest rate...
“Interest rates can be measured more accurately and more quickly than money supply. Hence interest rate is preferred over the money supply as an intermediate target”. Do you agree or disagree? Explain you answer. (500 words)
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing,...
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing, and GDP. Make sure to include the money graph. --answer with graph displaying the increase and decrease effect to the interest rates each tool has.
11. Which of the following statements correctly describes the relationship between the interest rate and money...
11. Which of the following statements correctly describes the relationship between the interest rate and money demand? A. When the interest rate increases, money demand increases because interest-paying bonds become more attractive than the money balance. B. When the interest rate increases, money demand increases because interest-paying bonds become less attractive than the money balance. c. When the interest rate increases, money demand decreases because interest-paying bonds become more attractive than the money balance. D. When the interest rate increases,...
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing,...
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing, and GDP (20 points). Make sure to include the money graph. I need the graph for Financial markets and Housing.
1. What is money? In the contemporary global economy, why has fiat money supplanted commodity money...
1. What is money? In the contemporary global economy, why has fiat money supplanted commodity money in economic and financial transactions? 2. Discuss the importance of depository institutions in the contemporary global financial system. Over the years, some banks have failed woefully; with reference to any two banks, briefly explain the reasons for bank failures Please answer in full sentences. thank you
The Financial Markets and Interest Rates To most of the public, the financial markets are an...
The Financial Markets and Interest Rates
To most of the public, the financial markets are an enigma. They go
up, they go down, and most have very little idea as to why. If you
fall into this category don't feel bad because many who work in the
financial industry are puzzled as well! The truth is that there are
many factors which influence the markets such as: economic cycles,
consumer preferences, taxation, regulation, high frequency trading,
and news among many...
1. What is the cost of money, and how is it determined? What factors affect the cost of money? 2. What is a yield curve? Why do yield curves differ? 3. Discuss the explanations for various shapes of yield curves. How can yield curves by used to forecast future interest rates? How does the Federal Reserve change the money supply in the United States? What actions would the Fed take to increase interest (decrease) rates? 5. How does general business...
short answer required
3. Suppose that velocity of money and output are . Gulf constant and the fresher effect both hold what happens to inflation real interest rate and nominal interest rate when the money supply growth rate increases from (096) to (5%)? 4. Why might a favorable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase frictional unemployment? 5. How young population effect economic development? 6....
11. Which of the following statements correctly describes the relationship between the interest rate and money demand? A. When the interest rate increases, money demand increases because interest-paying bonds become more attractive than the money balance. B. When the interest rate increases, money demand increases because interest-paying bonds become less attractive than the money balance. c. When the interest rate increases, money demand decreases because interest-paying bonds become more attractive than the money balance. D. When the interest rate increases,...
The Financial Markets and Interest Rates
To most of the public, the financial markets are an enigma. They go
up, they go down, and most have very little idea as to why. If you
fall into this category don't feel bad because many who work in the
financial industry are puzzled as well! The truth is that there are
many factors which influence the markets such as: economic cycles,
consumer preferences, taxation, regulation, high frequency trading,
and news among many...
Most questions answered within 3 hours.
-
I am trying to answer a question that is asking why there was no
evidence of...
asked 49 seconds ago -
Power elecrtonics: buck converter?
Calculate and plot (via excel/MATLAB) the average V(out) of a
buck converter...
asked 2 minutes ago -
PLEASE USE PYTHON
training error should strictly decrease as the degree of the
hypothesis polynomials increases....
asked 6 minutes ago -
Using the Table and data below, create a procedure that accepts
product ID as a parameter...
asked 8 minutes ago -
Suppose X follows an exponential distribution with mean 7.5.
Determine the conditional probability P(x > 2.5...
asked 31 minutes ago -
Young softball batters are often instructed to “choke-up on the
bat” by their coach. In terms...
asked 34 minutes ago -
Suppose that you are an official with Mexico's economic
development agency. Write a one-page memo detailing...
asked 1 hour ago -
If you were an international firm, why would you support the
concept of global free trade?...
asked 1 hour ago -
Cisco packet tracer
Q1) Do you get any changes of IP address when packet is
traversing...
asked 2 hours ago -
What is the pressure inside a 33.0 L container holding 106.4 kg
of argon gas at...
asked 2 hours ago -
Question no 2
A housekeeping support department budgets its costs at
SR 40,000 per month plus...
asked 2 hours ago -
A 1400Kg sports car accelerates from rest to 90km/h in 7.0s.
What is the average power...
asked 3 hours ago