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weqwewe [10]
3 years ago
6

Classify each of the ofllowing as either a policy instrument or an intermediate target, and explain why?

Business
1 answer:
Solnce55 [7]3 years ago
5 0

Answer: The answers are given below

Explanation:

An intermediate target is a variable this isn't controlled directly under the central bank, but one that has a quick response to policy actions. e.g money supply.

A policy instrument is a tool used to manipulate a variable in the economy and achieve a desired objective. e.g. tax rates, interest rates, subsidies etc.

a. The ten-year Treasury bond rate

It is an intermediate target because isn't controlled directly under the central bank but can be linked to an activity in the economy.

b. The monetary base

This is a policy instrument because used to manipulate a variable in the economy and achieve a desired objective.

c. Ml

This is an intermediate target as it cannot be affected directly by the Federal tools.

d. The fed funds rate

This is a policy instrument as it can be affected directly by Fed tools.

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In 269th Payment the principal component is greater than half of the payment

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Amortization schedule is attached please find it.

The loan payment includes the interest and principal portion. After deducting the interest on the due balance the residual amount is paid towards the principal.  

Loan is paid per month, the amount of each payment can be calculated as follow:

Loan Payment per month = r ( PV ) / 1 - ( 1 + r )^-n

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What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 p
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Profit of $8,500

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paul paid $663 for a new freezer. he paid for the freezer with his credit card, which has an interest rate of 15.28% compounded
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Cindy goes to the lumber yard to buy lumber for a deck that she is building. She tells the salesperson at the lumber yard that s
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Answer:

<em>c. Implied warranty of fitness for a particular purpose </em>

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The warranty of fitness for a particular purpose is inferred whenever a purchaser depends on the supplier to pick the products to fit a particular query.

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