Answer:
D. 3.
Explanation:
A bank can have different types of assets, including physical assets, such as equipment and land; loans, including interest from consumer and business loans; reserves, or holdings of deposits of the central bank and vault cash; and investments, or securities.
Answer:
the interest rate rises.
Explanation:
When interest rate increase, borrowing money from the banks become expensive. Individuals and companies will not be able to borrow money to finance investments as the interest rates would be discouraging. When the interest rates are high, saving with banks becomes more attractive. Interests earned of deposits become more appealing than the rate of return of an investment project.
Investments increase when the economy is doing well. If real GDP is to increase or consumers are more optimistic, it means the economy is doing well. Firms operate at near capacity if the economic conditions are favorable. In these three situations, investments will increase, not decrease.
Answer:
$146,105.22.
Explanation:
First, find the monthly interest rate from an effective rate of 6%
Rate = (1.06) ^ (1/12) - 1 = 0.00486755
Present value = 1692 [1 - (1.00486755) ^ - (180-100)] / 0.00486755 = 111,894.78
At closing = 258,000 - 111,894.78 = $146,105.22
