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3 years ago

What happens when the fed aims to change interest rates?

1 answer:

6 0

What happens when the fed aims to change interest rates? It buys or sells government bonds on the open market to achieve the desired rate. The fed can change interest rates based on sales or purchase of government bonds. Interest rates are defined as the amount of money you can accrue while you have your money in an interest barring account. They can also represent money that is applied to the principle of a loan or credit card when financing an item.

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3 years ago

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The U.S. Treasury offers to sell you a bond for $715.00. No payments will be made until the bond matures 15 years from now, at w

nalin [4]

Answer:

interest rate is 2.25 %

Explanation:

given data

sell bond = $715

bond matures = 15 years

redeem = $1,000

solution

we apply here formula that is

amount = principal × $(1+r)^{t}$ ................1

here put value and we get

1000 = 715 × (1+r)^{15}

$(1+r)^{15}$ = $\frac{1000}{715}$

solve it we get

r = 0.022617

so rate is 2.25 %

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3 years ago

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Answer:

A) none of these

Explanation:

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2 years ago

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Suppose that your monthly net income is $2,540. Your monthly debt payments include your student loan payment and a gas credit ca

ira [324]

Answer: 30%

Explanation:

We should note that debt payments-to-income ratio is calculated as:

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3 years ago

The increased use of the Internet presents a lot of potential for which types of businesses?

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Answer:

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3 years ago

What happens when the fed aims to change interest​ rates?

What happens when the fed aims to change interest rates?