Answer:
Federal Funds Rate:
d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves.
Explanation:
Federal funds rate is the target interest rate set by the FOMC (Federal Open Market Committee) at which commercial banks with deficit reserves borrow and banks with surplus reserves lend their excess reserves to each other overnight without collateral. The rates are set eight times a year in line with prevailing economic situations. The rates are lowered to boost economic growth and reduce unemployment by increasing money supply. They are increased to check inflation.
the answer is in the word doc
Answer:
Explanation:
Giving the following information:
The firm must pay $6 million now and $4 million in one year. Two years from now the project is expected to pay back $5 million, and three years from now it is expected to pay back another $10 million.
Io= -6,000,000
1= 4,000,000
2= 5,000,000
3= 10,000,000
i=0.25
We need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= 5,520,000
The firm should do the project when the net present value is positive.
Answer:
The returns of Stock A are 20% more sensitive to changes in the market than the returns of Stock B.
<h3>
Explanation:</h3>
- We are given that the beta of Stock A is 1.2.
- The markets have a beta of 1.0. Since Stock B has a beta of 1, the beta of Stock B is equal to the market beta.
- In other words, it would move in sync with the market. Stock A's beta of 1.2 would mean that the stock has a higher beta implying the stock is 20% more volatile than the market.
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