Answer:
Because nothing is free in this world.
Explanation:
Answer:
Compound interest (or combining interest) is that the interest on a loan or deposit calculated supported each the initial principal and also the accumulated interest from previous periods.
Answer:
decrease bank reserves; decrease the exchange rate and real GDP
Explanation:
The Federal reserve uses various monetary policies to regulate cash flow in the economy with a view of managing various indices like inflation, GDP, deflation, and so on.
Interest rate is one of the monetary policies that can be used to.vonttol the economy.
When interest rate is high cost of borrowing cash from commercial banks will be high so people are discouraged from borrowing. There is higher reserve in banks, and cash flow is restricted.
However in a situation where the economy is troubled the Federal Reserve will reduce interest rate.
This results in cheaper cost of borrowing funds, commercial bank reserves will reduce because of increased outward flow of cash.
As the cash in the economy is in excess the rate at which it exchanges for foreign currencies will fall.
This in turn results in more money being spent on foreign goods and will reduce real GDP
Answer:
Paying 20% of your credit card.
Explanation:
Paying off your balance every month is the best way to avoid interest.
