Answer:
0.0416483 or 4.16%
Explanation:
Annual percentage rate, APR = 4%
Value of toys sold = $200,000
Note period = 90 day
N = 365 ÷ 90
= $200,000 × [1 - (0.04 × 90/360)]
= $198,000
Effective annual financing cost:
= 1.0416483 - 1
= 0.0416483 or 4.16%
Answer:
a. The discount rate is the
- interest rate at which banks can borrow reserves from the Federal Reserve.
The discount rate is the interest rate that the FED charges commercial banks, credit unions, or other financial institutions for lending them money.
b. If the Fed were to decrease the discount rate, banks will borrow
- more reserves, causing an increase in lending and the money supply.
Lowering the discount rate is considered part of an expansionary monetary policy since banks will borrow more money and lend more money to the public, increasing the money supply.
1 5/7 would be the quotient
Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.
The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.
Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.
Hence, higher producer prices means that consumers will pay more when they buy.
To know more about producer price index here:
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Answer:
<h3>A limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. </h3>
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