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
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.

You might be interested in
Explain two barriers to entry for a new business
Marianna [84]

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). <em>Government regulation</em>- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). <em>Economies of scale</em>- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.


6 0
3 years ago
Read 2 more answers
A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If intere
ohaa [14]

Answer:

The price of the bond will be $879

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually

Number of periods = n = 2 x 8 years = 16 periods

Current Yield = r = 8.3% / 2  = 4.15% semiannually

Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]  

Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]  

Price of the Bond = $521.74 + $357.26   = $879

7 0
3 years ago
Help !! I’ll mark the best one
aleksley [76]
E: grape and shapes is the answer
3 0
3 years ago
What is one way you can get singled out as a leader by using body language?
Mashutka [201]

Answer:

Explanation:

In a group meeting or any setting that requires a leader, many body language signs can accidentally cause someone to be singled out or chosen as a leader. Such signs as smiling, making eye contact, good posture, assertive attitude, hand gestures, etc are all body language signs that give off confidence to those around you, and confidence is the main trait of a leader.

3 0
3 years ago
using pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the marke
OleMash [197]

Using penetration pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the market.

In order to attract customers, the penetration pricing approach entails launching a new good or service at a cheap price. Gaining market share and aggressively attracting clients through low costs are the objectives. In a pricing strategy known as penetration pricing, a product's price is first set very low to quickly reach a large portion of the market and spread word of mouth. The tactic relies on the notion that consumers will transfer to the new brand as a result of the price reduction.

When companies launch a low price for a brand-new good or service, this is known as penetration pricing. Competitors are compelled to match the offer or immediately implement alternative techniques since the first price undercuts it. Customers of rivals could switch to the less expensive product.

Learn more about penetration pricing here: brainly.com/question/3521758

#SPJ4

5 0
11 months ago
Other questions:
  • Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a se
    14·1 answer
  • After watching both videos above, explain the importance of understanding intercultural communication. Identify the role that co
    13·1 answer
  • Is there anyone good in Accounting?
    10·1 answer
  • A company's flexible budget for 44,000 units of production showed variable overhead costs of $57,200 and fixed overhead costs of
    11·1 answer
  • A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate, g, is 4.0%.
    7·1 answer
  • The Accounts Receivable account has a beginning balance of $10,000 and the company provides services of $50,000 on account durin
    14·1 answer
  • Read the scenario and answer the question.
    8·1 answer
  • What is a similarity between a term life insurance policy and a whole life insurance policy?
    5·1 answer
  • What determines the foreign exchange rate?
    8·1 answer
  • Most financial securities have some level of ________ risk. Multiple Choice unsystematic asset-specific diversifiable industry s
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!