Answer:
A. Money Market checking account
Explanation:
A money market account represents a savings account with some features of a checking account provided by a bank. Herein, a customer deposits money, and such funds are invested into money market instruments which are highly liquid, such as commercial papers, treasury bills, certificate of deposits, etc.
Such accounts provide debit card and checks and allow a certain number of withdrawals every month. The rate of interest offered under these accounts is usually higher than the ordinary savings account.
In the given case, the customer has $20,000 to invest and also requires immediate access to the funds to pay his bills. The best recommendation would be to deposit such funds to a money market checking account, which would provide him with access i.e liquidity, a higher rate of interest than on savings account and safety of investment.
It is noteworthy that all other options specified are not as liquid as money market checking account since, those alternatives either require considerable time in redeeming and selling or do not provide immediate access to funds.
Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
Answer:
Secular bear market
Explanation:
A secular bear market is a long term trend that lasts between 5 to 25 years which consists of a smaller bull market and a larger bear market. It means that a small period of increase in prices is followed by a prolonged period of a decrease in price.
A secular bear occurred between January 1980 to June 1999 in the gold market. During this time, the price of gold fell $850/oz to $253/oz
A secular bull market is a long term trend that lasts between 5 to 25 years which consists of a small period of decline in prices is followed by a prolonged period of a rise in price.
The task that Kenneth may perform as a part of his job is: B . research stock price histories.
<h3>Who is a stock trader?</h3>
- A stock trader is a person who trades equities and securities with the intention of making profits from them. For a person to be successful in this job he has to keep abreast with the current prices of stock and equities.
- So, Kenneth needs to research price histories in his role as a stock trader. This will help him to advise clients on the most profitable.
Learn more about stock trading here:
brainly.com/question/25818989
