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Leni [432]
4 years ago
9

Countries with strong balance sheets and declining budget deficits tend to have lower interest rates. When the economy is weaken

ing, the Fed is likely to increase short-term interest rates. During the credit crisis of 2008, investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and liquidity of several securities in the United States and several other nations. The demand for US Treasury bonds increased, which led to a rise in their price and a decline in their yields. The Federal Reserve’s ability to use monetary policy to control economic activity in the United States is limited because US interest rates are highly dependent on interest rates in other parts of the world.
Business
1 answer:
Sergeu [11.5K]4 years ago
3 0

Answer:

Solution for question 1

It is not necessary that action that lower the short term interest rate will lower the long term interest rate also.

So given statement is false.

Solution for question 2

Because of subprime crisis in 2008 most of the Market collapsed and there is a huge problem of liquidity. Yield on US treasury security was decreased and so the price of treasury securities was increased.

Hence, given statement is true.

Solution for question 3

Countries with strong balance sheet mean countries are developed and so interest rate in these countries is lowered.

Hence, given statement is true.

Solution for question 4

One of the major function of Federal Reserve is to control economic activities. In the Era of globalization all countries economy is depend on other economy. So interest rate in USA highly dependent on other countries.

Hence, given statement is true.

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A personal financial statement is also called which of the following?
Phantasy [73]

Answer:

The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The statement can help individuals track their financial goals and wealth, and can be used when they apply for credit.

3 0
3 years ago
Preferred stock valuation Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has
Nesterboy [21]

Answer:

(a) $51.92

(b) She will face a loss of $7.66

Explanation:

(a) Market Value of Preferred Stock:

= Dividend ÷ Required Return

= $5.40 ÷ 10.4%

= $51.92

(b) If she sells the stock when the required return on​ similar-risk preferred stocks has risen to 12.2​%.

Market value of the securities:

= $5.40 ÷ 12.2%

= $44.26

therefore,

Market value of the securities - Market Value of Preferred Stock

= $44.26 - $51.92

= $7.66

She will face a loss of $7.66

3 0
3 years ago
SDLC is: 1. A plan to outsource and insource an information system to meet the organization's information needs 2. An informatio
algol13
<h3>SDLC is a way to deliver efficient information systems that fit with an organization's strategic business plan </h3>

Explanation:

Software Development Life Cycle (SDLC) is a method used by the software industry for designing, producing and reviewing applications of high quality. The SDLC strives to create a high-quality product that meets or exceeds customer requirements, completes in time and estimates of costs.

A life cycle of software development is close to that of a life cycle of a project.  In fact, in many situations, SDLC is considered to be a phased project model that matches the organizational business plan, personnel, policy, and budgeting constraints of a huge scale systems project.

4 0
3 years ago
Mirr, Inc. was incorporated on January 1, year 1, with proceeds from the issuance of $750,000 in stock and borrowed funds of $11
KonstantinChe [14]

Answer:

$885,000

Explanation:

Calculation for the total assets should be reported

Using this formula

TOTAL ASSETS =Total of liabilities + Total stockholders' equity

Initial equity $750,000

Income $18,000

($82,000-$64,000)

Dividends ($3,000)

12/31 Total stockholders' equity $765,000

Add Liabilities of $120,000

Total ASSETS $885,000

Therefore On Mirr's December 31, year 1 balance sheet, total assets should be reported at $885,000

8 0
3 years ago
Margaret puts money into her savings account each month. in this example money is functioning as a
astraxan [27]

Answer: a store of value

4 0
2 years ago
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