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3 years ago

The difference between the nominal interest rate and the real interest rate is

2 answers:

8 0

Answer: the correct answer is letter D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation: in financial maths when you speak about "real" rates you should consider the inflation impact.

anyanavicka [17]3 years ago

8 0

Answer:

D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation:

The nominal interest rate is that interest rate that is advertised by the financial institutions either as interest on loan or deposit. Since it is the interest rate stated in financial instruments like the ones quoted on bonds, it is also seen as the stated interest rate.

The real interest rate is the interest rate which has been adjusted to remove the effect of inflation. That is, to get the real interest rate, take the nominal interest rate and subtract the inflation rate. therefore, we can use the following formula.

Real Interest Rate = Nominal Interest Rate - Inflation Rate.

In fact the real interest rate can be sen as the real cost of borrowing money.

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In a ________, two or more companies at one level join together to follow a new marketing opportunity. franchise multichannel di

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<span>In a channel arrangement, two or more companies at one level join together to follow a new marketing opportunity.

When a company has a channel arraignment it allows for new marketing strategies and tactics. In this situation, companies are going in together at the same level with the same power to accomplish new opportunities and goals together. </span>

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3 years ago

What piece of legislation, one of the most complex areas of federal civil law, was established in 1974 mainly to protect the emp

Angelina_Jolie [31]

Employee Retirement Income Security Act is established in 1974 mainly to protect the employee pension system from employer fraud.

<h3>What is Employee Retirement Income Security Act?</h3>

The Employee Retirement Income Security Act serves as an act of 1974 that contains rules on the federal income tax to favor employees.

This act, provides employee with benefit plans and a protection against wicked employers.

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brainly.com/question/1083892

4 0

2 years ago

If a good is inferior, then an increase in income will result in a(n) a. increase in the demand for the good. b. decrease in the

Paul [167]

Answer:

b. decrease in the demand for the good.

Explanation:

An inferior good is a good whose demand falls when income increases and rises when income decreases.

A decrease in demand would lead to a leftward shift of the demand curve.

Inferior goods contrasts to a normal good. A normal good is a good whose demand increases when income rises and falls when income reduces.

Only a change in the price of a good leads to movement along the demand curve for that good.

I hope my answer helps you

7 0

3 years ago

XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 44,00

-Dominant- [34]

The XYZ Company's basic earnings per share are $0.71, while the diluted earnings per share are $0.72.

Data and Calculations:

Outstanding Common stock shares on Dec. 31, 2020 = 200,000 shares

July 1, 2021, Issuance of 44,000 shares

Total outstanding common stock

January 1, 2021, Issuance of 16,000 convertible preferred stock

Par value of preferred stock = $100 per share

The Dividend rate of preferred stock = 6%

Convertibility of preferred stock = 8 common shares

Net income = $270,000

Preferred dividend = $96,000 ($1,600,000 x 6%)

Earnings for common stockholders = $174,000 ($270,000 - $96,000)

Basic earnings per share = (Net income - Preferred Dividend)/244,000

= ($174,000)/244,000

= $0.71

Convertible Preferred into Common stock = 128,000 (16,000 x 8) shares

Total shares = 372,000 (244,000 + 128,000)

Diluted earnings per share = $270,000/372,000

= $0.73

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8 0

3 years ago

If an account has a credit balance it means

Brums [2.3K]

Answer:

If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.

Explanation:

Hope this help!!

6 0

2 years ago