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2 years ago

How does the Federal Funds Rate affect consumers looking to take out a loan?

Business

1 answer:

Artyom0805 [142]2 years ago

6 0

Answer:

The federal funds rate is the rate at which banks borrow money overnight. When the Fed wants to stimulate the economy, it will lower the short-term funds borrowing rate. In response, banks typically lower the interest rates they charge to consumers for a variety of loans.

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Ruby, age 50, is considering going back to school. She would like to retire at age 67. She currently earns $50,000 per year. If

weeeeeb [17]

Answer:

Ruby should go to college.

Explanation:

Ruby is currently 50 years old and earning $50,000 per year.

She would like to retire at 67.

She is thinking of going back to college, to complete a graduate degree.

After completing a graduate degree from the college she would earn $55,000.

The total cost of a graduate degree is $75,000.

Ruby still has 17 years to work and earn.

Her income will increase by $5,000 after college

The increase in income earned after college until retirement

= $5,000 $\times$ 17

= $85,000

Since the increase in income is greater than the cost of going to college, Ruby should go to college.

4 0

2 years ago

A nation has a GDP of 685m. It has a growth rate of 4%. How long will it take the nations GDP to double?

katovenus [111]

<span>The Rule of 70 can be used to determine the length of time it would take for a variable to double. In this case, using a growth rate of 4%, we can divide 70/4 to find that it would take 17.5 years for the GDP of this nation to approximately double.</span>

7 0

2 years ago

You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are m

nasty-shy [4]

Answer:

The correct answer is to put the two variables in the same type of measure.

Explanation:

To begin with, in order to compare to different variables that are in different measures the correct way to proceed is to put them in the same measure so therefore they will be comparable with each other. Once said that, in this case the person should put the psychological benefits in economics benefits as it is the other variable and in order to do that the person should think of what aspects of his productivity would increase if he takes the vacations and gains the psychological benefits. For example, after getting back from the holidays he may feel himself less stress and more relax and therefore that he may be able to either do more job, more studies or more excercises and all that can impact in an economic way.

7 0

2 years ago

Chang industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these

Fynjy0 [20]

If the company calls these bonds at a price of $201,000, the gain or loss on the retirement would be $2,000.

Here, $203,000 is the net carrying value of the liability - $201,000 is the price the bonds were called at and the price that Chang industries paid to retire the bonds and the associated liability.

Therefore, $203,000 - $201,000 = $2,000

The gain or loss on the retirement would be $2,000.

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. Thus, the issuer retires the bonds at the scheduled maturity date of the instruments.

Hence, bond retirement involves the cashing out of a bond that has been invested in.

To learn more about bond retirement here:

brainly.com/question/13960495

#SPJ4

4 0

10 months ago

Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of

DedPeter [7]

Answer:

The supply of tortillas decreased

Explanation:

7 0

2 years ago