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SSSSS [86.1K]
3 years ago
6

Describe how interest rate changes affect the saving rate in the united states. how do banks adjust interest rates on deposits a

nd loans​
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

When the Fed lowers the rate, the opposite occurs. Banks are more likely to borrow from each other to meet their reserve requirements when rates are low. Credit card rates drop, so consumers shop more. With cheaper bank lending, businesses expand.

Explanation:

You might be interested in
Ford Motor Company has a 1.40 beta. If the overall stock market increases by 8 percent, how much will Ford change?
oksian1 [2.3K]

Answer:

11.2

Explanation:

Your formula would be I = Overall market increased * Beta

"I" being Fords increase

so just plug in and solve

So your volatility would be 11.2

6 0
3 years ago
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more tha
iris [78.8K]

Answer:

2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates

Explanation:

Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line

So the option 2 is correct

7 0
3 years ago
Transactions for Sheridan Company for the month of May are presented below. Prepare journal entries for each of these transactio
babymother [125]

Answer:

May 1

Cash $4,350 (debit)

Common Stock $4,350(credit)

May 3

Equipment $1,055 (debit)

Accounts Payable $1,055 (credit)

May 13

Rent Expense $394  (debit)

Cash $394  (credit)

May 21

Accounts Receivable : Noble Corp $530 (debit)

Service Revenue $530 (credit)

Explanation:

Note that, When stockholders invest cash in exchange of common stock, we recognize the increase in assets of cash and also the increase in equity item common stocks.

6 0
3 years ago
A group of athletic shoes in a shoe factory are partially completed but still lack their innersoles and shoestrings. these shoes
gogolik [260]
<span>These would be work in-progress inventory. They are further along in production than the basic raw materials, but are not completed to the point where they could be put out for sale as finished goods. They are still requiring some work to get to this point.</span>
5 0
3 years ago
A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.
lbvjy [14]

When you see a journal entry that leads to a debit of Raw Materials and a credit of Accounts Payable, this is a<u> C. purchase of materials. </u>

<h3 /><h3>What happens when materials are purchased?
</h3>

As materials are an asset, the raw materials account will be debited to show that raw materials are increasing.

If the Accounts Payable is credited, it means that it is increasing as well because it is a liability. The transaction was therefore done by buying the materials on credit.

In conclusion, option C is correct.

Find out more on raw materials purchases at brainly.com/question/26446159.

5 0
2 years ago
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