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kupik [55]
3 years ago
7

Suppose, for simplicity, that a bank uses a single interest rate for loans and deposits, there is no inflation, and all unspent

money is deposited in the bank. The interest rate measures which of the following?
a. the cost of using a dollar today rather than a year from now
b. the benefit of delaying the use of a dollar from today until a year from now
c. the price of borrowing money calculated as a percentage of the amount borrowed
Business
1 answer:
nikitadnepr [17]3 years ago
3 0

Answer:

All the options are correct.

Explanation:

It is assumed that a bank uses a single interest rate for both loans and deposits. There is no existing inflation in the economy. Money which is not spent is deposited in the bank.  

On the basis of these assumptions, we can say that the interest rate is the cost of borrowing money which is calculated as a percentage of the principal or the amount borrowed.  

For a depositor, it is the return on depositing money or benefit of depositing money instead of using it immediately.  

It can also be referred to as the opportunity cost of not depositing the money in the bank but spending it instead.

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Choose the correct description of variable and fixed costs. A. A variable cost is related to a particular cost object and can be
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Answer:

B.

Explanation:

Fixed costs are those costs which are not output dependent. Are fixed till certain level of output. The fixed cost per unit changes with output.

Variable costs are those costs which are output dependent. There is a positive correlation between the production output and the variable cost. The variable cost per unit remains constant.

With the classification of cost into fixed and variable, the manager can count the break even point, in amount terms as well as in the number of unit terms.

The ratio between the variable cost and fixed cost shows how much adjustable is the organization.

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Jade puts a picture of a collection of rare sports memorabilia up for bids on BuyBay, an Internet auction site. Khalil makes the
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cyber fraud.

Explanation:

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In the broadest sense, economics studies the choices that
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The range rule of thumb roughly estimates the standard deviation of a data set as​ _______.
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5 0
3 years ago
A manuscript is sent to a typing firm consisting of typists A, B and C. If it is typed by A, then the number of errors made is a
spin [16.1K]

Answer:

(a) E(X) = 3

(b) Var(X) = 12.1067

Explanation:

(a) E[X]

E[X]T = E[X]T=A + E[X]T=B + E[X]T=C

         = (2.6 + 3 + 3.4)/3

         = 2.6 (1/3) + 3(1/3) + 3.4(1/3)

         = 2.6/3 + 1 + 3.4/3

         = 3

(b) Var (X) = E[X²]−(E[X])²

Recall that if Y ∼ Pois(λ), then E[Y 2] = λ+λ2. This implies that

E[X²] = [(2.6 + 2.6²) + (3 + 3²) + (3.4 + 3.4²)]/3

         = (9.36 + 12 + 14.96)/3

         = 36.32/3

         = 12.1067

Var(X) = E[X²]−(E[X])²

          = 12 - 3²

          = 12.1067 - 9

          = 3.1067

8 0
3 years ago
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