Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>
What is the following may I ask? You can invest in real estate by either buying a property or buying into a real estate investment fund.
Answer:
5. Word is that a new highway is being built in the next couple of years. making it easier to transport our products from the factory.
Explanation:
Answer:
The best alternative will be of 180,000 today.
Explanation:
We calculate the present value of the second and third alternatives and compare with the cash received today:
.2. A 20-year annuity of $16,000 beginning immediately
C 16,000
time 20
rate 0.07
PV $169,504.2279
3.- A 10-year annuity of $50,000 beginning at age 65.
C $ 50,000
time 10 years
rate 0.07
PV $351,179.0770
This start at age 65 currently he's 55 so we bring it to present:
Maturity $ 351,179.08
time 10 years
rate 0.07
PV 178,521.64
As non of the alternatives is better than 180,000 today we pick this alternative.
