Answer:
(a) $45
(b) 4.45%
(c) 1.41%
Explanation:
a) Dollar return:
= Selling Price - Buying Price + Coupon
= $985 - $1,010 + $70
= $45
b) Rate of return:
= Dollar return ÷ Buy price
= 45 ÷ 1,010
= 4.45%
c) Based on Fisher relation,
(1 + Nominal rate) = (1 + Real rate) × (1 + Inflation)
(1 + 4.45%) = (1 + Real rate) × (1 + 3%)
Therefore,
Real rate = 1.41%
When the Federal Open Market Committee allows treasury securities to be sold in the open market, the result is a) decreases the money supply.
<h3 /><h3>What happens when treasury securities are sold?</h3>
When treasury securities are sold by the FOMC of the Federal Reserve, people will buy those securities which means that the Federal Reserve gets that money.
As a result, the money supply in the economy will decrease as the amount of money in the economy will be reduced by the amount that went to the Fed.
In conclusion, when treasury securities are sold on the open market, this decreases the money supply.
Find out more on open market operations at brainly.com/question/14256204
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"The use of a buyer's agent guarantees that the buyer will get a property for the lowest price possible" is NOT an advantage of buyer's agency.
It is true that the efforts that a buyer's agent exerts on behalf of the buyer cannot be compromised and that the buyers can freely communicate confidential information without fear that disclosing that information will weaken their negotiating position. The buyers will also have the benefit of a licensee's expertise in finding the right property, negotiating the purchase and attending to closing details.
However, using a buyer's agent won't guarantee that the buyer can get the best deal on a property; as a result, this is not one of the advantages of buyer's agency. The agent would only consider what is best for the buyer and not the cheapest.
Agents will also charge extra fees and commissions for representing their buyers. To avoid additional expenses, some buyers and sellers choose not to use an agent. In order to save more money and find a property for the lowest price, buyers should avoid using an agent and instead deal directly with the seller.
Learn what happens when there's no buyer agency agreement in place here: brainly.com/question/28066390
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Answer:
The correct answer is letter "A": The maximum level of production of goods and services for a society.
Explanation:
Production efficiency or productive efficiency is the point in which an economy cannot increase output in a good or service without lowering the production level of another product. An economy that operates along its production possibility frontier (<em>PPF</em>)<em> </em>has maximized its production efficiency. In other words, that economy is working at its maximum possible level.