1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
swat32
2 years ago
7

Choose the correct word in brackets to complete the following:(1) Which fluctuate more-long-term or short-term interest rates? W

hy?(Short or long) -term interest rates are (more or less) volatile because the (Federal Reserve or Internal Revenue Service) operates mainly in the (short or long) -term sector, hence (Federal Reserve or Internal Revenue Service) intervention has its major effect here, and (short or long) -term interest rates reflect the average expected inflation rate over the next (1 to 2 or 20 to 30) years, and this average does not change as radically as year-to-year expectations.(2) What does it mean when it is said that the United States is running a trade deficit? What impact will a trade deficit have on interest rates?The (larger or smaller) the trade deficit, the (lower or higher) the tendency to (lend or borrow) . Foreigners will hold U.S. debt if and only if the rates on U.S. securities are (lower or competitive) with rates in other countries. This causes U.S. interest rates to be (highly or not very) dependent on rates in other parts of the world. This interdependency (limits or aids) the ability of the (Federal Reserve or Internal Revenue Service) to use (fiscal or monetary) policy to control economic activity in the United States. For example, if the (Federal Reserve or Internal Revenue Service) attempts to (lower or raise) U.S. interest rates and this causes rates to (fall below or rise above) rates abroad, foreigners will begin (selling or buying) U.S. bonds. Those (sales or purchases) will depress bond prices, which will push up rates in the U.S.. Thus, the large U.S. trade deficit (hinders or aids) the (Federal Reserve or Internal Revenue Service) ability to combat a recession by lowering interest rates.(3) Suppose you have noticed that the slope of the corporate yield curve has become steeper over the past few months. What factors might explain the change in the slope? (1) Inflation is expected to be (higher or lower) in the future.(2) There is a positive (default or maturity) risk premium.A downward sloping yield curve yield curve when inflation is expected to (decrease or increase) . Such a downward sloping yield curve often foreshadows an economic (upturn or downturn) because of weaker economic conditions generally lead to declining inflation, which in turn results in (lower or higher) long-term rates.Recall that corporate bonds include a risk premium (DRP) and a premium (LP). One recent study estimates that both the default risk premium and liquidity premium vary over time, and the majority of the corporate bond yield spread can be attributed to (default or liquidity) risk.For example, the (default or liquidity) risk on Coca-Cola's short term debt is very small because there is almost no change that Coca-Cola will go bankrupt over the next few years. However, Coke has some bonds that have a maturity of all most (100 or 500) years. There is a higher probability of default risk on Coke's (long or short) -term bonds than on its (long or short) -term bonds.
Business
1 answer:
mash [69]2 years ago
3 0

Answer:

(1) Which fluctuate more-long-term or short-term interest rates? Why?(Short or long) -term interest rates are (more or less) volatile because the (Federal Reserve or Internal Revenue Service) operates mainly in the (short or long) -term sector, hence (Federal Reserve or Internal Revenue Service) intervention has its major effect here, and (short or long) -term interest rates reflect the average expected inflation rate over the next (1 to 2 or 20 to 30) years, and this average does not change as radically as year-to-year expectations.

(2) What does it mean when it is said that the United States is running a trade deficit? What impact will a trade deficit have on interest rates?

The (larger or smaller) the trade deficit, the (lower or higher) the tendency to (lend or borrow) . Foreigners will hold U.S. debt if and only if the rates on U.S. securities are (lower or competitive) with rates in other countries. This causes U.S. interest rates to be (highly or not very) dependent on rates in other parts of the world. This interdependency (limits or aids) the ability of the (Federal Reserve or Internal Revenue Service) to use (fiscal or monetary) policy to control economic activity in the United States. For example, if the (Federal Reserve or Internal Revenue Service) attempts to (lower or raise) U.S. interest rates and this causes rates to (fall below or rise above) rates abroad, foreigners will begin (selling or buying) U.S. bonds. Those (sales or purchases) will depress bond prices, which will push up rates in the U.S.. Thus, the large U.S. trade deficit (hinders or aids) the (Federal Reserve or Internal Revenue Service) ability to combat a recession by lowering interest rates.

(3) Suppose you have noticed that the slope of the corporate yield curve has become steeper over the past few months. What factors might explain the change in the slope?

(1) Inflation is expected to be (higher or lower) in the future.(2) There is a positive (default or maturity) risk premium. A downward sloping yield curve yield curve when inflation is expected to (decrease or increase) . Such a downward sloping yield curve often foreshadows an economic (upturn or downturn) because of weaker economic conditions generally lead to declining inflation, which in turn results in (lower or higher) long-term rates. Recall that corporate bonds include a risk premium (DRP) and a premium (LP). One recent study estimates that both the default risk premium and liquidity premium vary over time, and the majority of the corporate bond yield spread can be attributed to (default or liquidity) risk. For example, the (default or liquidity) risk on Coca-Cola's short term debt is very small because there is almost no chance that Coca-Cola will go bankrupt over the next few years. However, Coke has some bonds that have a maturity of all most (100 or 500) years. There is a higher probability of default risk on Coke's (long or short) -term bonds than on its (long or short) -term bonds.

Explanation:

The Federal Reserve manages the monetary policy by influencing short-term interest rates and the availability and cost of credit in the economy.  While its monetary policy directly affects interest rates, it also indirectly affects stock prices, wealth, and currency exchange rates.

You might be interested in
What is valuable goods
tankabanditka [31]
Anything that is possessed with funds or luxury or heirloom items
4 0
3 years ago
State and explain ways to set-up business in domestic market?
Murljashka [212]

Answer:

Explanation:Buy products in bulk to sell.

Sell homemade products you make yourself.

Start a dropshipping store.

Start a print-on-demand store.

Sell your service or expertise.

Productize your service or expertise.

Grow an audience you can monetize.

Buy an existing ecommerce business.

3 0
3 years ago
g A joint product is: Select one: a. Any product which consists of several parts. b. Any product produced by a company with more
mr_godi [17]

Answer:

The correct answer is letter "D": One of several products produced from a common input.

Explanation:

Joint products are those manufactured by large companies whose production process is the same at an early stage for all the different products being produced, but at a certain stage, called a split-off, the products begin to have their own characteristics.

Since the products initially come from the same input, the costs are allocated in the bundle. After the split-off, the cost of production is allocated to each type of product.

8 0
3 years ago
Dixie is a product of the Digby company. Digby's sales forecast for Dixie is 506 units. Digby wants to have an extra 10% of unit
n200080 [17]

Answer:

556.6 or 557 units

Explanation:

Given that,

Digby's sales forecast for Dixie = 506 units

Digby wants to have an extra units on hand above and beyond their forecast = 10%

Production units = Sales × (1 + Reserve Percentage)

                             = 506 × (1 + 10%)

                            = 506 × 110%

                             = 556.6 or 557 units

Therefore, the Dixie's will produce 557 units in order to have a 10% reserve of units available for sale.

5 0
3 years ago
Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
kipiarov [429]

Answer:

Yes

Explanation:

The 0.01 percent of the deviation plus the 0.01 percent of the sales average is not enough to get to the $6,300 daily, which means that the factor of the increase sales is the advertising campaign.

4 0
3 years ago
Other questions:
  • ∆DEF, FE=5 and angle D=43
    14·1 answer
  • For which persons may a taxpayer deduct medical expenses?
    13·1 answer
  • A metallurgical engineer decides to set aside money for his newborn daughter's college education. He estimates that her needs wi
    5·1 answer
  • During the employee selection process, the screening interview is often conducted by: the current workers in the applicant's dep
    9·1 answer
  • Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to
    12·1 answer
  • An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu
    8·1 answer
  • Harry recently raised his employees' wages, which has increased production costs. Which factor did the salary hike affect?
    15·2 answers
  • A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended
    13·1 answer
  • Plz helpppp
    7·1 answer
  • Data entered into a computer is called a...
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!