A borrowed reserves target is <u>procyclical</u> because increases in income <u>increase</u> interest rates and discount loans, causing the fed to <u>increase</u> the monetary base, and everything else held constant.
<h3>
What are interest rates?</h3>
- The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount.
- Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
- A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD).
- The interest received on these deposit accounts is measured in annual percentage yields (APY). Simple interest is used in most mortgages.
- Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
- The interest rate will be lower for a borrower who the lender deems to be low risk.
To learn more about interest rates with the given link
brainly.com/question/13324776
#SPJ4
B is the most reasonable answer
Answer:
B. 6,4
Explanation:
The clothing company has 5 locations and now is considering moving into vertical integration. The new production plant will supply fabric to all clothing plants. The vertical integration circumstances lead installation of new fabric plant The current location of clothing plant are given among which the best location to install the new plant is (X,Y) (6,4).
Answer:
$1,102,820
Explanation:
The computation of the net present value is shown below:
= Present value of yearly cash inflows - initial investment
where,
Present value of yearly cash inflows is
= Annual year cash inflows × PVIFA factor
= $300,000 × 2.9906
= $897,180
And, the initial investment is
= $1,500,000 + $500,000
= $2,000,000
So the net present value is
= $897,180 - $2,000,000
= $1,102,820