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VARVARA [1.3K]
4 years ago
12

Which of the following statements is correct? A. The Federal funds rate is the rate banks charge their most creditworthy custome

rs. B. The prime rate involves longer, more risky loans than the Federal funds rate. C. The discount rate is the rate banks charge one another on overnight loans. D. The Federal funds rate is derived based on the prime rate.
Business
1 answer:
SIZIF [17.4K]4 years ago
6 0

Answer: Option (B) is correct.

Explanation:

Correct Option: The prime rate involves longer, more risky loans than the Federal funds rate.

It was seen that prime rate is higher than the federal funds rate because it involves more risk, longer term loans than one day or overnight loans occurred between the commercial banks.

Both federal rate and prime rate keep tracking the each others rate.

Remaining all the statements are not correct in the question.

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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an
xenn [34]

Answer:

-3.41%

Explanation:

The computation of the annual rate of return is shown below;

We use the formula:

Future value = Present value × (1 + rate of interest)^number of years  

$10,710,500 = $12,738,500 × (1 + rate of interest)^5

($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)

(1 + rate of interest) = 0.965913622

r = (0.965913622 - 1) × 100

= -3.41%

3 0
3 years ago
Lakeside Inc. produces a product that currently sells for $64.80 per unit. Current production costs per unit include direct mate
iren [92.7K]

Answer:

a. Incremental costs = (Direct materials + Direct labor) * 20%

Incremental costs = ($26 + $28) * 20%

Incremental costs = $54 * 20%

Incremental costs = $10.8

Incremental selling price = $72 - $64.8 = $7.2

Incremental profit (loss) = Incremental selling price - Incremental costs = $7.2 - $10.8 = $(3.6)

b. No. As there is Incremental loss, it should not be processed further

5 0
3 years ago
Which one of the following statements is correct concerning the concept of materiality?
Alchen [17]

Answer:

D) Materiality is a matter of professional judgement

Explanation:

5 0
3 years ago
In a market economy, buying decision are made by consumer
stiv31 [10]

Answer:

customers

Explanation:

they are the one who buys products that factories make

5 0
3 years ago
The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than fin
ryzh [129]

Answer:

False

Explanation:

The strike price is used at the time of trading of the options, while on the other hand the option that could be exercised is when take place when there is a delivery of the stock. Basically it means that the stock that can be predicted value and it is set by the seller of the contract. Also it is to be termed as the convertible bonds, but it should be more used for the option trading

Therefore the given statement is false

3 0
3 years ago
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