Answer:
1. 0.35%
2. 1.15%
Explanation:
The federal funds rate is the rate at which a bank can borrow funds from other depository institutions such as other banks and credit unions for overnight without collaterals. It is a very short term interest rate.
Discount rate at which the federal reserve system provides funds to commercial banks at the discount window. The federal reserve can control the money supply by changing the discount rate.
Here, in the given example, the federal reserve rate is 0.35%, as it is the rate at which the bank can borrow from other banks. While the discount rate is 1.15%, as this is the rate at which banks can borrow from the federal reserve.
When shareholders are referred to as disenfranchised or having synthetic ownership it means that the shareholders while owning the majority stock have the real right in selling the stock and not in possession.
<h3>What is disenfranchised or synthetic ownership of stock?</h3>
Disenfranchise or synthetic ownership means that shareholders do not own the underlying stock but have the right to sell, thereby providing them with consistent cash flows.
Thus, when shareholders are referred to as disenfranchised or having synthetic ownership it means that the shareholders while owning the majority stock have the real right in selling the stock and not in possession.
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