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3 years ago

Which factor is the least affected by interest rate changes?

Business

1 answer:

ehidna [41]3 years ago

8 0

Answer:

Option C. GNP

Explanation:

The business cost and the price of the product is of-course get affected by the increase or decrease in the interest rate. So both of these options are the answer to the question.

The GNP measures the value of the products and services that is owned by the country's residents which also includes the production output in warehouse, individual product holdings, etc. for the year. So GNP is least affected by the interest rate changes.

Though the value of the major investments in the foreign country can not be affected easily. Other factors that also effect the earnings from the abroad are profitability, dividend policy, taxes, etc that affects the earnings from the foreign countries. However the small investments would definitely be affected by the investments made in the foreign stock exchange with the change in the interest rate in the home country. So this change in the interest rate would definitely affect the earnings coming from abroad as the investment in foreign countries has been lessened. So can have considerable affect on the earnings coming from abroad.

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Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record. This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

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3 years ago

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Answer:

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Explanation:

Hierarchical organizational structure is the type of organization structure where the level of management are divided according to function and services they are performing.

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3 years ago

One of the best ways to overcome fear is to know what happens in a typical interview

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Answer:true

Explanation:

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3 years ago

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3 years ago

Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad

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Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

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3 years ago