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Rainbow [258]
3 years ago
9

As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo

ney, so the interest rate falls. c. people will want to hold less money, so the interest rate falls. d. people will want to hold less money, so the interest rate rises
Business
1 answer:
icang [17]3 years ago
8 0

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

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Wind damage occurs to your car costing $800 to repair. If you have a $500 deductible for collision and full coverage for compreh
Igoryamba

Answer:

$300

Explanation:

Deductible referred to as the amount paid from one's pocket to join the amount of one's loss, while the insurance company balance up the remaining.

The loss which is $800 is a little bit more than deductibles.

Damage=$800

Deductibles=$500

The damages is just $300 more than deductibles.

As stated in the question there is a collision and comprehensive insurance for the driver , therefore the driver will pay $500 from his own pocket.

THE PORTION OF CLAIM THE INSURANCE COMPANY PAY =($800-$500)=$300

$300 will only be received from the company.

In Higher deductibles the premium insurance is reduced in cost.

In lower deductibles there is higher premium but with the cost from one's pocket is low.

Deductible has influence on

one's claim.

Comprehensive insurance is one of automobile insurance,it covers damages or event that occurs to a car that is out of one's control.It covers for replacement or repairment of one's car if damaged by something or to repair bit, other a collision.

Comprehensive insurance can cover up for

theft ,natural disasters or from fire incident.

5 0
3 years ago
Read 2 more answers
Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C
sertanlavr [38]

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

6 0
2 years ago
pJimmy is a client of yours and he has some holdings in U.S. T-Bonds. Over the past year, he received $500 in interest from thes
Firdavs [7]

Answer:

Jimmy must pay federal income taxes for the $500 earned in dividends during last year = $500 x 28% = $140

Since interest earned on federal securities are not taxed by state or local governments, there is no state tax liability.

Jimmy's total taxes due from dividends earned = $140

5 0
2 years ago
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased
weqwewe [10]

Answer:

$320.59 decrease

Explanation:

The computation of the change in the value is shown below:

As we know that

The Value of perpetuity is

= Annual inflows ÷ interest rate

Current value is

= $170 ÷ 0.082

= $2,073.17

And,

New value is

= $170  ÷ 0.097

= $1,752.58

Now change in value is

= $2,073.17 - $1,752.58

= $320.59 decrease

We simply applied the above formula

8 0
3 years ago
A land title search office has a staff of three, each working eight hours per day (for a total payroll cost of $480/day) and ove
miv72 [106K]
<span>Well, your costs per title have decreased from: $780/7 = $111.43 to: $1080/12 = $90 That represents a decrease in costs of almost 20%. Then. taking the change in titles processed per dollar of cost (the reciprocals of previous calculations), means that total productivity has increased by around 23.8%. Are you calculating labor productivity as including overhead? Because then the answer is 23.8%.</span>
4 0
2 years ago
Read 2 more answers
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