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2 years ago

The discount rate refers to which tool of monetary policy?

Business

1 answer:

jeyben [28]2 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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You have $250,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 12.9 percent, and Stock L

prisoha [69]

Answer:

The investment in stock H will be $104837.5 while the investment in stock L will be $145162.5

Explanation:

The portfolio return is the weighted average return of the individual stocks that form up the portfolio. The weightage of each stock in the portfolio is the investment in a stock as a proportion of investment in the portfolio.

Let x be the weightage of Stock H.

Weightage of Stock L will be (1-x).

Portfolio return = wH * rH + wL * rL

Plugging in the values,

0.111 = x * 0.129 + (1-x) * 0.098

0.111 = 0.129x + 0.098 - 0.098x

0.111- 0.098 = 0.031x

0.013 / 0.031 = x

x = 0.41935 or 41.935% rounded off to 3 decimal places

(1-x) = 1 - 0.41935 = 0.58065 or 58.065%

Investment in Stock H = 250000 * 41.935% = $104837.5

Investment in Stock L = 250000 * 58.065% = $145162.5

6 0

3 years ago

There are several methods used to classify restaurants, experts agree that the two main categories of restaurants would be:

ludmilkaskok [199]

Answer:

independent, chain are the answer

Explanation:

3 0

2 years ago

The _______________ on Lay's potato chips informs customers that the chips received the "Best Taste Award" among leading classic

MA_775_DIABLO [31]

Answer:

seal

Explanation:

Based on the information provided within the question it can be said that this information is found of the seal of the Lay's potato chips bag. This is is a type of award symbol that demonstrates excellence in a certain area for the product in question. Which in this scenario refers to the "Best Taste Award" that was given to the company by the American Culinary Institute.

4 0

2 years ago

Which statement is true of adolescent cognitive skills? a. Adolescent processing speed slows because of numerous changes in seve

sveta [45]

Answer: Option (A)

Explanation:

From the following given options, we can state that "Adolescent processing tends to speed slows and easy, this is so since there happens to be numerous changes in an individuals hormones." An individual go through changes through out his/her life especially these changes are in accordance with their hormones and tend to affect the cognitive skills.

6 0

2 years ago

If you own a small retail shop and you put ads in the local paper, put flyers on doors in every neighborhood, and buy billboar

statuscvo [17]

Answer:

The correct option is A

Explanation:

Mass marketing is the kind of market approach, in which the business or the firm decides to ignore or disregard the differences in the market segment and reconsider the full market with the one approach or the strategy, that supports the broadcasting idea, so that it will reach to the huge number of people.

This kind of marketing is the one which is a point of convergence on the newspapers, radio and television as the media used to approach the audience. So, it is engaging or involving in the mass marketing.

4 0

2 years ago