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3 years ago

The discount rate refers to which tool of monetary policy?

Business

1 answer:

jeyben [28]3 years ago

6 0

Answer:

D. The ability to change the cost banks have to pay to borrow money.

Explanation:

Reserve( FED) sets the discount rate and applies it on loans to commercial banks and other institutions. Commercial banks use the discount rate as the basis for determining the interest rate to charge customers for loans issued.

The discount rate is among the monetary policy tools available for use by the FED. An increase in the discount rate leads to a rise in commercial banks' loan interest rates, thereby discouraging borrowing. Reduced borrowing reduces the money supply in the economy.

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Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: (Use 36

snow_tiger [21]

Answer:

Maturity Date December 3 Interest $160
Maturity Date June 9 Interest $98
Maturity Date December 4 Interest $281.25
Maturity Date September 4 Interest $82.50
Maturity Date November 29 Interest $168.75

Explanation:

Working

Principal of the Note * Annual Interest Rate * Time= Interest

$6,000 * 8 * 120 days/360 = $160
$16,800 * 7 * 30 days/360 = $98
$25,000 * 9 * 45 days/360 = $281.25
$4,500 * 11 * 60 days/360 = $82.50
$9,000 * 9 * 75 days /360 = $168.75

Date of Note Principal Interest Rate (%) Term Maturity Rate Interest ($)

August 5 $6,000 8 120 days $160

Maturity Date December 3 Interest $160

May 10 $16,800 7 30 days $98

Maturity Date June 9 Interest $98

October 20 $25,000 9 45 days $281.25

Maturity Date December 4 Interest $281.25

July 6 $4,500 11 60 days $82.50

Maturity Date September 4 Interest $82.50

September 15 $9,000 9 75 days $168.75

Maturity Date November 29 Interest $168.75

Maturity Date Computation=

Days In August = 31

Minus the date of Note = 5

Days Remaining in August 26

Add Days in September 30

Add Days in October 31

Add Days in November 30

Maturity Date of Dec 3 3

Period of the note in days 120 days

Days In May = 31

Minus the date of Note = 10

Days Remaining in May 21

Maturity Date of June 9 9

Period of the note in days 30 days

Days In October = 31

Minus the date of Note = 20

Days Remaining in October 11

Add Days in November 30

Maturity Date of Dec 4 4

Period of the note in days 45 days

Days In July = 31

Minus the date of Note = 6

Days Remaining in July 25

Add Days in August 31

Maturity Date of Sept 4 4

Period of the note in days 60 days

Days In September = 30

Minus the date of Note = 15

Days Remaining in September 15

Add Days in October 31

Maturity Date of Nov 29 29

Period of the note in days 75 days

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3 years ago

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Maru [420]

Answer:

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Explanation:

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solmaris [256]

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4 years ago

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In the Solow growth model, where s is the saving rate, y is output per worker, and i is investment per worker, consumption per w

Vaselesa [24]

Answer:

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3 years ago