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3 years ago

If a bank is offering a higher interest rate of return to investors, the MOST LIKELY impact on borrowers from the same bank is

2 answers:

7 0

The answer is D. An increased interest rate. The bank will increase the interest rates on loans to get a return on their expences.

forsale [732]3 years ago

6 0

If a bank is offering a higher interest rate of return to investors, the most likely impact on borrowers from the same bank is D. an increased interest rate. An increased interest rate is what gives investors a higher return because they make money off the interest rates. Banks collect the interest as 'repayment' for the loans they are giving out. This serves as a way for them to protect their investment and also make money off of someone else's loan.

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The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate

rusak2 [61]

Answer:

Explanation:

real interest rate ≈ nomial interest rate - inflation

ratereal interest rate ≈ 6 - 3 ≈ 3%

Please mark as brainliest if you find this useful, I need it to rank up

5 0

2 years ago

Using percentages or ratios based upon unforeseen differentials in prices, Forward Pricing Rates Agreements (FPRAs) protect the

krok68 [10]

Rates for corporate outings is NOT an example of an FPRA rate

Explanation:

The FPRA is an agreement between an entrepreneur and a governmental agency in which some indirect charges are determined over a set period of time. All such rates are price forecasts used for cost agreements and contract changes.

By using an FPRA the contracting system can be accelerated by removing the need for audit and analysis of rates. The Contracting Officer (COO) oversees the prices of the contracting party. The ACO should always be asked any questions about the prices. After a FPRA is reached, a copies of the agreement should always be provided for in any ensuing proposal.

6 0

3 years ago

In two to three sentences, explain why a small amount of inflation encourages economic growth. will give brainliest

mylen [45]

Answer:

A small amount of inflation can be really good for the economy. It can boost consumer demand and consumption. This encourages spending and investing.

4 0

3 years ago

If investors expect inflation to increase over the next 20 years and the maturity risk premium is expected to increase over the

olganol [36]

Answer: normal /upward sloping

Explanation:

The yield curve is a curve that shows the relationship that exist between interest rate and time to maturity. According to the expectation theory, it is stated that the yield curve will be upward sloping when there's increase in inflationary expectations.

The slope of the yield curve helps in giving a clue to know the direction of future interest rates. It should be noted that an upward sloping curve means that there is an expectation of higher interest rates in the future.

Therefore, when investors expect inflation to increase over the next 20 years and the maturity risk premium to increase over the next 5 years, the general yield curve will be upward sloping.

5 0

2 years ago

The Phelps Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at th

Lynna [10]

Answer:The correct option is C = 0.98%

Explanation:

Ok so we do 25.50 - 2.80 because its being taken out

then we divide the answer we get by 10

or multiply it by .10

Hope this helps :)

3 0

2 years ago