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Gemiola [76]
3 years ago
10

Your friend Ed has a money market mutual fund​ account, automatic deposit of his paycheck into an​ interest-bearing checking acc

ount at the company credit​ union, and a CD from the local branch of a bank that advertises​ "coast-to-coast" banking. What is the benefit of​ "mixing and​ matching" financial institutions and their​ services?
Business
1 answer:
kondaur [170]3 years ago
7 0

Answer:

Explanation:

Mixing and matching financial institutions and their services involves using services of different financial institutions. The benefits of doing this is to utilize their different lending and borrowing interest rates. One that has the lowest lending interest rate will be used to get credit and the one with the highest savings rate will be chosen for investments. Another benefit is to minimize fees, minimize risk of loss could there be a bank-run and to also enjoy the increase in flexibility that comes with managing money in different accounts.

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A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
3 years ago
Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in rea
Pepsi [2]

Answer:

The correct answer is: an expansionary gap; decrease the money supply.

Explanation:

An expansionary gap is when genuine output surpasses potential output. At the end of the day, the economy is incidentally working over its long-run potential as estimated by real GDP.

3 0
3 years ago
After getting a raise at work, Jennie now regularly buys steak instead of hamburger. Based on this behavior, we can assume: Mult
Sauron [17]

Answer:

Steak is a normal good, and hamburger is an inferior good for Jennie

Explanation:

Based on this behavior, we can assume steak is a normal good, and hamburger is an inferior good for Jennie. That is because a normal good is any good who's demand increases when there is a rise in the consumers' income, while an inferior good sees decreased demand due to a rise in income. Therefore, since Jenna buys more (increased demand) steak and less (decreased demand) hamburger due to her increased income this means that steak is a normal good, and hamburger is an inferior good for Jennie

7 0
3 years ago
Judge Karen, a state appellate court judge, decides that the precedent for the case she is hearing is no longer correct due to t
crimeas [40]

Answer:

Increased publicity

Explanation:

if a judge overturns a case from a trial court and rejects precedent, the judge should get publicity for her decision and modification of the precedent so that it becomes a new way or basis of judging similar cases. In other words if judge Karen decides that the precedent before her to judge the case is outdated as a result of technological changes, she will decide on the case before her based on what she believes the precedent should reflect(new technologies) and this becomes the new basis for judging all such cases and as a result should be publicised for other judges to take note

7 0
3 years ago
What effects did the great depression have on the credit industry
NikAS [45]
It expanded the credit industry because all americans credit was effected by the great depression

8 0
3 years ago
Read 2 more answers
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