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Ber [7]
3 years ago
12

Which item below is an incorrect statement about the difference between the discount rate and the federal funds rate? a) The fed

eral funds rate has a higher interest rate than the discount rate to encourage borrowing b) The discount rate is the interest rate at which the Fed charges the bank for loans c) The federal funds rate is the interest rate at which banks charge each other for loans d) The discount rate is directly changed by the Fed while the federal funds rate is changed indirectly.
Business
1 answer:
mestny [16]3 years ago
5 0

Answer:

a) The federal funds rate has a higher interest rate than the discount rate to encourage borrowing

Explanation:

The Feds fund rate is the rate at which banks borrow from each other usually overnight, while the discount rate is the interest rate charged by the Fed to commercial banks for borrowing directly from the Fed.

These borrowings help the commercial banks meet up their liquidity requirements.

The discount rate is higher than the Fed funds rate. This is to encourage banks to borrow from each other instead of borrowing directly from the Federal Reserve.

The Fed fund rate also tends to affect the prime lending rate (rate at which banks lend money to their clients).

So the statement - The federal funds rate has a higher interest rate than the discount rate to encourage borrowing. Is not correct

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Jackie has been reading about international trade and that one nation has the ability to produce a specific product more efficie
ludmilkaskok [199]

Answer: (A) Cooperative advantage

Explanation:

  A cooperative advantage is the term which is used by an organization for providing the various types of benefits and advantages to all the employees in the company and it also helps in achieving the specific goal in an organization.

 The main objective of the cooperative advantage is to providing the various types of economical benefit in an organization.  

According to the given question, Allie is basically using the cooperative advantage over Jackie for the process of making the power point presentation about the international trade and so that by using the presentation method they can easily convey their opinions and message to the audience.  

 Therefore, Option (A) is correct answer.

6 0
3 years ago
beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The
gregori [183]

Answer:

RA=11.6%

Explanation:

RA=Rf+(Rm-Rf)Ba

RA=?

Rf=5.25%

Rm=12.5%

Ba=.88

RA=5.25%+(12.5%-5.25%).88

6 0
3 years ago
You are writing a recommendation report on which vendor of audiovisual services to hire for your company's annual conference. Th
amm1812

Answer:

I suggest you delay your choice until you learn more of Zenith's current management

Explanation:

The management is just a position that doesn't carry the same character. Every manager carries different values and principles and one person might be satisfactory to you while another might not be. The new management may have some characters which might be off-putting to you and might ruin the company's conference. Best to go with what you know than what you don't.

4 0
3 years ago
Dublin Inc. had the following common stock record during the current calendar year: Outstanding-beginning of year 2,600,000 Addi
larisa86 [58]

Answer:

The correct answer is 3,175,300.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the number of shares by using following formula:

Number of shares = [ Outstanding + ( Additional share × Months) + ( Additional share × Months)] × 1+Dividend

By putting the value, we get

= [2,600,000 + (280,000 × 6/12) + (280,000 × 3/12)] × 1.13

= [ 2,600,000 + 140,000 + 70,000 ] × 1.13

= 3,175,300

4 0
3 years ago
Tobang Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere b
Alex787 [66]

Answer:

The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.

At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.

Explanation:

3 0
3 years ago
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