Answer:
One of my major financial decisions in life were when i chose to invest the money I save in the mutual funds present in the financial sector.
Mutual funds are a type of financial instrument which is made up like a pool from the money received from different investors. Many investors put their money collectively hence making a pool of it and then that instrument is known as Mutual fund, which the fund manager than invest it somewhere else.
there are different types of mutual funds, some types are fixed income mutual funds and equity mutual funds.
Fixed income mutual funds are those funds whose money is invested in the securities which give fixed return and are less risky, for example Govt. bonds, treasury bills etc.
Equity mutual funds are those funds whose money is invested in the stock market and are more risky.
So my decision making process was when I started earning a little money through working as a part time worker while studying, I thought why shouldn't I save the money I earn and invest it somewhere safe so that I can make It increase in value and have a good return on it. Hence, I opted to invest in Fixed Income mutual fund which gives me good less risky return which I earn on my savings and then reinvest it, this way I am making my earning grow in a better way. And definitely the opportunity costs I incurred while doing this was the money I could have used for buying different video games, different clothes, drinks, chocolates etc.
Even though I am incurring opportunity costs but I am proud of my financial decision which will benefit me in the longer run of life.
Thank You.
A 401(k) gives you tax breaks, therefore I'd say A.
A borrowed reserves target is <u>procyclical</u> because increases in income <u>increase</u> interest rates and discount loans, causing the fed to <u>increase</u> the monetary base, and everything else held constant.
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What are interest rates?</h3>
- The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount.
- Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
- A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD).
- The interest received on these deposit accounts is measured in annual percentage yields (APY). Simple interest is used in most mortgages.
- Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
- The interest rate will be lower for a borrower who the lender deems to be low risk.
To learn more about interest rates with the given link
brainly.com/question/13324776
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Depreciating Assets could be anything you own that is losing its value. It could be in the form of stocks, valuables, a car, a house.
The answer in the space provided is inflation. This occurs
when the prices of the goods and services that are being served to the
consumers are at the high rate while it makes the purchasing power of the
currency to decrease or to fall.