Answer:
It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made
Explanation:
The Fed decides on required reserve ratio for the banks and other financial institutions; t can lower or raise it. Reserve ratio is the portion of all the money that bank are required to sets aside and hold onto; this means they are not allowed to lend that out to borrowers. This is a technique that is used to control the supply of money in the economy. By decreasing this ratio, banks will have more money to lend out and vice versa.
Answer:E. a flexible price policy
Explanation:
The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.
The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.
Answer:
6.43%
Explanation:
The internal rate of return shall be determined by the Insurance firm using the following mentioned method:
Cash flows Year involved Present [email protected]% Present [email protected]%
($100) 1-20 ($851) ($1,487.75)
$3,310 20 $492 $1,832.67
($359) $344.92
IRR=A%+ (a/a-b)*(B%-A%)
A%=10% a= ($359) B%=3% b=$344.92
IRR=10%+(-$359/-$359-$344.92)*(3%-10%)
=6.43%
