1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mumz [18]
4 years ago
12

2.5 If the nominal rate of interest is 4.25 percent and the expected rate of inflation is 1.75 percent, what is the real rate of

interest?
Business
1 answer:
Burka [1]4 years ago
3 0

Answer:

2.5

Explanation:

Real interest rate is the interest rate that has been adjusted for the effect inflation.

Nominal interest rate hasn't been adjusted for the effects of inflation. It is the one more popularly quoted .

Inflation is the rise in general price level.

Real interest rate = nominal interest rate - expected inflation rate

4.25 - 1.75 = 2.5

I hope my answer helps you

You might be interested in
A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the
love history [14]

Answer:

6.75%

Explanation:

Data provided in the question:

Beta of the stock = 1.12

Expected return = 10.8% = 0.108

Return of risk free asset = 2.7% = 0.027

Now,

Since it is equally invested in two assets

Therefore,

both will have equal weight = \frac{1}{2} = 0.5

Thus,

Expected return on a portfolio = ∑(Weight × Return)

= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]

= 5.4% + 1.35%

= 6.75%

8 0
4 years ago
The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. The new va
chubhunter [2.5K]

Answer:

competitive advantage

Explanation:

Based on the information provided within the question it can be said that this is an example of communicating a product's competitive advantage.  This term refers to a specific condition that allows a company to be placed in a favorable or superior position within the industry which it is in. Which in this case having high quality coffee at an extremely low price when compared to the competition puts it in this favorable position.

3 0
3 years ago
The ______ is a government-sponsored enterprise that works through a cooperative system to provide agricultural and rural loans.
makvit [3.9K]

The "Farm Credit System" is a government-sponsored enterprise that works through a cooperative system to provide agricultural and rural loans.

<h3>What is Farm Credit System?</h3>

A nationwide financing network with a focus on helping the agriculture sector is called as Farm Credit System (FCS). It is composed of banking industry and organisations that extend loans to people and companies around the country.

Some key features of farm credit system are-

  • From small farming families to multinational corporations, the FCS supports the rural community including organizations of all shapes and sizes.
  • The FCS is composed up several cooperative banks and organisations that lend money to Americans both personally and commercially.
  • There are 72 independent, customer-owned financial institutions that make up the FCS.
  • A vital source of financing for the agricultural sector, which is viewed as high-risk most traditional lenders, is the Farm Credit System.

To know more about the Farm Credit System, here

brainly.com/question/28097911

#SPJ4

5 0
2 years ago
From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ...
Sunny_sXe [5.5K]

Answer:

C. Letter C; demand exceeds supply, resulting in a shortage

Explanation:

I had put my answer as A on the test and got it wrong. But this is the correct answer C.

5 0
3 years ago
Susan can brew 5 gallons of root beer in an hour or she can make 4 pizzas in an hour. Becky can brew 7 gallons of root beer in a
Murljashka [212]

Answer:

Becky

Explanation:

A person has absolute advantage in the production of a good if she produces more quantities of the good compared to the other person.

Susan produces 4 pizzas in an hour while Becky produces 5 pizzas in an hour. So, Becky has an absolute advantage in the production of pizzas.

I hope my answer helps you

6 0
3 years ago
Other questions:
  • On January 3rd, Gates Gems returned merchandise they purchased on account from Jewelry Wholesalers in the amount of $1,450. What
    15·1 answer
  • Select all that apply. Which roles come through choices? husband or wife son or daughter sibling mother or father peacemaker or
    13·2 answers
  • Far Horizons, Inc. has experienced a lot of absenteeism and turnover among employees, particularly among ethnic and religious mi
    5·1 answer
  • A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an in
    12·1 answer
  • Which statement would apply to a consortium?
    15·1 answer
  • Salubre Pharmaceuticals invested $3.4 billion dollars to develop a new drug for individuals with diabetes. After Salubre receive
    11·1 answer
  • Marlo is a compulsive shopper. He shops for apparel online. He wants to get rid of the habit. He seeks help from his friend Thom
    7·1 answer
  • The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
    5·1 answer
  • which of these line items appears on both the statement of stockholders' equity and the balance sheet?
    12·1 answer
  • chapter 9 technology methodical application of scientific knowledge for practical purposes invention product or process which ca
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!