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.
Answer:
PV= $62,158.4
Explanation:
Giving the following information:
Annual payment= $6,400
Number of periods= 15 years
Interest rate= 6% = 0.06
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {6,400*[(1.06^15) - 1]} / 0.06
FV= $148,966.21
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 148,966.21 / (1.06^15)
PV= $62,158.4
Answer:
None of the choices describe offshore outsourcing.
Explanation:
Offshore outsourcing is when a company hires a third party in another country to do some tasks for the company.
Answer: Sales promotion
Explanation:
Promotion includes all the techniques sellers use to motivate/persuade people to purchase their product or services.
Sales promotion is a part of the promotional mix that uses media and non-media outlets to improve product awareness, increase consumer demands and marketability. It helps in stimulating consumers' interest in a product.
Sales promotion programs are designed to enhance personal selling, advertising, public relations, and other promotional efforts.
Sales promotions can take place both within/inside and outside an organization. It helps to attract new customers, with old existing customers and ease competition.
