Answer:
Indication of correct terms:
a. The reward a saver expects on loaned funds: 3. Interest rate
b. The cost a borrower pays for loaned funds: 3. Interest rate
c. The -difference between the real interest rate and the nominal interest rate: 1. Inflation rate
d. The percentage of disposable income that is kept as personal savings: 2. Saving rate
e. The term that indicates most people need to be incentivized to save: 4.Time preference
f. The result consumption exceeding income over a particular period: 5. Dissaving
Explanation:
1. Inflation rate is the ratio of the change in the prices of goods when compared with an indexed figure.
2. Saving rate is the ratio of savings kept behind from disposable income earned. It shows the ratio of income not consumed when earned.
3. Interest rate is the ratio of the amount that is saved or loaned out that people would receive in order to incentivize them to save or lend and prefer the same amount today and in future.
4. Time preference is a term that shows that people value an amount of money today more than they value the same amount received in future. So, they would rather spend that amount today than spending it tomorrow.
5. Dissaving is spending more than income and even tapping into or consuming from the savings account.
Answer:
I am unsure of the answer but it can be narrowed down to B D or E because the GDP would decrease.
Answer:
B) GNMAs are considered to be the riskiest of the agency issues
Explanation:
The Ginnie Mae or GNMA pass through securities are mortgage backed. The Great recession taught us that mortgage backed securities are not always 100% secure, but they are still considered secure investments basically because they are guaranteed by the US government. They are similar to the securities sold by the US Treasury.
Ginnie Mae basically guarantees mortgages using federal funds (from Federal Housing Administration and Department of Veterans Affairs).
Answer:
a-1. How long do you have to pay before the account is overdue?
a-2. If you take the full period, how much should you remit?
- if you pay after the discount period (first 30 days) but before the 50th day, you must pay $84,800
b-1. What is the discount being offered?
- 2% if you pay within 30 days
b-2. How quickly must you pay to get the discount?
- you have up to 30 days to pay the invoice and still get the discount
b-3. If you do take the discount, how much should you remit?
c-1. If you don’t take the discount, how much interest are you paying implicitly?
c-2. How many days’ credit are you receiving?
- the total credit period is 50 days
