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3 years ago

Determinants of market interest rates

Business

1 answer:

ollegr [7]3 years ago

7 0

Answer:

1. Real risk-free rate.

2. Nominal risk free-rate.

3. Inflation premium.

4. Liquidity risk premium.

5. Liquidity risk premium.

6. Maturity risk premium.

Explanation:

Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;

1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*

2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.

3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.

4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.

5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.

6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.

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To reduce product development time, Caterpillar connected its engineering and manufacturing divisions with its active suppliers,

Sergio [31]

Answer: an extranet

Explanation:

An extranet is a private network that is controlled that gives access to vendors, suppliers, partners, vendors or a group of customers that are authorized.

Therefore, to reduce product development time, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through an extranet.

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2 years ago

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basi

vazorg [7]

Answer:

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

Explanation:

Actual variable overhead rate = $\frac{Actual variable overhead}{Actual Hours}$ = $\frac{66,170}{6,400} = 10.34$

Therefore variance with the budgeted standard variable overhead

= (Standard Overhead rate - Actual overhead rate) $\times$ Actual Hours

= ($9.70 - $10.34) $\times$ 6,400 = -$4,096

And Fixed Overhead variance = Standard Fixed Overhead - Actual Fixed Overhead = $69,000 - $74,000 = -$5,000

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = -$4,096 + -$5,000 = -$9,096

Since the value of variance is negative it means the expense both variable and fixed are over absorbed, which means it is unfavorable.

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

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2 years ago

Zahra, a self-employed, single taxpayer, reports all her income on Schedule C. During the tax interview, her Tax Professional de

marusya05 [52]

Answer:

Explanation:

Explain to Zahra that she must report all her business income and expenses.

To qualify for the Earned Income Credit you must have earned income from working for someone or from running or owning a business and meet basic rules.This is a reason for Zahra to report all her business income and expenses.

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3 years ago

1. What are the three key assets that Walmart can leverage (build on) to compete with Amazon and other online retailers

Colt1911 [192]

Answer:

The 3 important assets that Walmart can be used to remain competitive with Amazon have been listed below.

Explanation:

Driven by the increasing utilization of internet shopping, retail chains, together with Walmart, were concerned about its business model. However, as Walmart is still in a safe stance and has been for some moment, it could be said that this same corporation does have some methodologies to encourage Amazon, its biggest throughout the world corporation.

Walmart seems to have the biggest independent water channel transportation system.
It would have the fastest-growing traditional retail stores across the U.S. Just because of this, this has become a density.
Also, this same strategy will enhance the percentage of warehouses and therefore a retail distribution channel.

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2 years ago

Estion 6<br> How much will a $1.42 loaf of bread cost in 25 years based on inflation?

Alex17521 [72]

Answer:

It will cost $17.60 in 25 years based on inflation

Explanation:

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2 years ago