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3 years ago

Explain why the Federal Reserve Bank might be concerned if the economy begins growing too quickly.

Business

1 answer:

Katen [24]3 years ago

6 0

Answer:

To check against high inflation rate

Explanation:

Inflation is the steady increase in the prices of goods and services in the economy per period. Inflation is associated with economic growth. Naturally, as the economy grows, the prices of different products and services tend to increase.

When the economy is growing at a fast rate, the inflation rate tends to increase. A rise in the inflation rate means prices are increasing at a high rate. When prices are unstable, planning and budgeting become challenging for individuals, firms, and the government. Inflation erodes the strength of a currency, which causes unstable prices and other economic challenges. The Federal Reserve keeps monitoring inflation and applies appropriate monetary policies to regulate economic growth and the inflation rate.

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Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement

Mariulka [41]

Answer:

Option A. Liable, because notice to Emmett is notice to Fridley.

Explanation:

The reason is that the principle is liable for the outcome of the Emmett actions in the principle's behalf. So it is clear that Fridley is liable. The agent have to work in the best interest of its principal which means that the failure to notify the additional tax liability to Fridley was part of agent's fiduciary duty. This means that the principle can sue its agent for the consequences of not placing the sufficient care to its principle.

The Fridley is also responsible because Emmett is acting as Fridley which means the notice to Emmett is actually notice to Fridley.

6 0

2 years ago

Read 2 more answers

A portfolio is made up of stocks a, b, c, and d in the proportion of 20%, 30%, 25%, and 25% respectively. the nondiversifiable r

kow [346]

The portfolio beta would simply be the summation of the weighted average of each beta.

Where weighted average of each beta is calculated as:

Stock weighted average = Stock proportion * Individual beta

Therefore,

Stock A beta weighted average = 0.2 * 0.4 = 0.08

Stock B beta weighted average = 0.3 * 1.2 = 0.36

Stock C beta weighted average = 0.25 * 2.5 = 0.625

Stock D beta weighted average = 0.25 * 1.75 = 0.4375

The summation of all betas yield the overall portfolio beta:

Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375

<span>Portfolio beta = 1.5025 ~ 1.5</span>

4 0

3 years ago

Pera Inc. wishes to issue new bonds. These are 5-year bonds with semi-annual interest; $1,000 par value, and a yield to maturity

Gemiola [76]

Answer:

coupon rate= 13.5%

Explanation:

Giving the following information:

Number of periods= 5*2= 10 semesters

Par value= $1,000

YTM= 0.1/2 = 0.05

Price bond= $1,136

<u>To calculate the coupon rate, first, we need to determine the coupon per semester using the following formula:</u>

Bond Price= coupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

1,136 = coupon*{[1 - (1.05^-10)] / 0.05} + [1,000/(1.05^10)]

1,136 = coupon*7.722 + 613.91

522.09 = coupon*7.722

$67.61=coupon

<u>Now, the coupon rate:</u>

Coupon= par value*(coupon rate/2)

67.61= 1,000*(coupon rate/2)

67.61= 500coupon rate

0.135=coupon rate

coupon rate= 13.5%

5 0

2 years ago

Southland farm sold ten september futures contracts on wheat. Southland farm will:______.

Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

<h3>What is the payment?</h3>

Generally, the act or process of making a monetary contribution to someone or something, or of receiving a monetary contribution.

In conclusion, Wheat futures contracts were sold by Southland Farm for 10 contracts in September. September will be a busy month for the Southland farm, with both payments and deliveries.