When one commercial bank borrows from another commercial bank, it pays the discount rate.
The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.
The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.
The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.
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While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Paula and her assistant are using the contingency approach.
True
Answer:
(A) $500 million
(B) This type of analysis is used to show that Special Interest Groups tend to press the government for TRANSFERS instead of ECONOMIC GROWTH.
Explanation:
1/10,000 of the real GDP is = $50,000
RGDP = 50,000 ÷ 1/10,000
RGDP = 50,000 × 10,000 = $500,000,000
If special interest group Q would have to be indifferent (not care which policy is applied at the given time) between the 2 policies, then the economic growth policy would have to increase the size of the RGDP (the economic pie) by an amount sufficient enough for them to get their net benefit of $50,000.
The RGDP figure above ($500 million) is the amount by which RGDP (real gross domestic product) should grow, if Group Q will still get their net benefit when only the economic growth policy (EGP) is applied.
In this case, the EGP applied in place of the TP (transfer policy) would still fetch Group Q the minimum net benefit of $50,000
(B) This type of analysis is used to show that Special Interest Groups tend to press the government (policy makers and enforcers) for TRANSFERS instead of ECONOMIC GROWTH.
The communication barrier Yessica is likely to face as an exchange student from Spain is language.
<h3>What is a communication barrier?</h3>
Communication barrier is a thing or a factor that stands in the way of effective communication. Yessica is from Spain and she is studying in Maryland. In Spain, Spanish is spoken and in Mayland, English is spoken, thus there is a difference in language and this would stand in the way of effective communciation.
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