Answer: Pay fixed rate while receiving floating rate.
Explanation:
According to the given question, If the second national bank contain more rate of liabilities as compared to the rate of asset in any organization then it basically reducing the risk of the interest rate by using the technique swapping with paying some fixed amount of rate at the time of receiving the floating rate.
The process of fixed to floating swap is one of the contractual process between any two types of companies or members so that they can swap their cash flow system.
Therefore, The given answer is correct.
Answer:
E) -2.50 ; inferior
Explanation:
Before you earned $3,500 per month, you consumed 7 units per month. That means that you consumed 1 unit every $500 earned.
When your income increased to $4,000, you only consumed 5 units per month. That means that your consumption decreased to 1 unit for every $800.
The income elasticity of demand using the midpoint method is calculated by using the following formula:
income elasticity = {change in quantity demanded / [(old quantity + new quantity) / 2]} / {change in income / [(old income + new income) / 2]}
= {-2 / [(7 + 5) / 2]} / {500 / [(3,500 + 4,000) / 2]} = (-2 / 6) / (500 / 3,750) = -0.333 / 0.133 = -2.5
Since the income elasticity of demand is negative, the good X is an inferior good.
Answer
the correct answer is
Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.
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Answer: See explanation
Explanation:
Based on the information given, we should note that the bond will trade at par at $1000 after six month
The holding period return will be:
= [ P1 - P0] / P0
= [ 1000 - 896.81 ] / 896.81
= 103.19 / 896.81
= 0.1151
= 11.51%
Then, the Annualized rate will be:
= HPR at 6 Months / 6/12
= HPR × 12 / 6
= 11.51% × 12 / 6
= 11.51% × 2
= 23.01%
Annualized Rate = 23.01%
The phrase that describes his investment strategy is "Risky and Long term investor".
Basically, an investment strategy refers to set of rules, behaviors or procedures which are designed to guide an investor's on the selection of an investment portfolio.
- Majority of investors fall between lower risk investor, moderate risk investor and higher risk investor.
- The portfolio that he invests in ( stocks and high-yield bonds) is an example of high risk portfolio
In conclusion, the phrase that describes his investment strategy is "<em>Risky and Long term investor</em>"
Read more about investment strategy:
<em>brainly.com/question/1101043</em>
