Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
Answer: I decreases; II decreases; III decreases
Explanation:
Debt Covenants becoming more restrictive means that less people want to borrow money. This shifts the demand curve to the left and this Decreases interest rates.
The Fed increasing money supply means that there is more money in the economy. This shifts the supply curve to the right thus having the effect of reducing Interests rates as there is more money available for loans.
Total Household Wealth increasing means that Households have less of an incentive to borrow money. This reduces the demand for interest rates so interest rates decrease.
Answer:
The correct answer is C
Explanation:
Economies is the study of how the society uses the resources which are limited and it deals with the consumption, production as well as distribution of the goods and services.
And under the economics the cost of something like or product is defined as what the person give up in order to get something.
For example, a person wants to purchase to product, he needs to give up the money against it in order to have the product or item with him.
Answer:
$1,700
Explanation:
Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.
It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.
Answer:
Multibranding strategy
Explanation:
Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.
In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.
A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.