I believe the answer is: A. <span>The Fed only loans money to member banks.
During inflation for example, the federal reserve could issue government owned bonds that can be bought by normal citizens (non member banks)
This allow them to take in a lot of money from market circulation and gradually increase the value of the currency.</span>
<span>The inflation rate is 16.67%. To find this, we first need to compute the GDP deflator for each year and then we need to calculate the percent change in the GDP deflator. The GDP deflator is given by GDPdef=(nominal GDP/Real GDP)*100. For the first year, the GDP deflator is 120. For the second year it is 140. Percent change is given by [(new value - old value)/old value]*100. Plugging in 140 for the new value and and 120 for the old value, we see get that the percent change is 16.6667. Thus the inflation rate is approximately 16.67%.</span>
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
Answer:
Economic factors directly impact business and are essential factors that can help or impede the organisation in accomplishing its targets. Financial factors that ordinarily influence organizations to incorporate wages, loan and banking transactions. Overall, micro and macroeconomic both factors play a crucial role in predicting and forecasting business dealings and there long-term stability and growth.
Explanation:
Some of the significant economic factors that influence businesses directly are exchange rate, interest rate, unemployment rate, inflation rate, monetary policy, fiscal policy, taxes and many other micro and macro variables factors undertake a critical job in assessing how the business will perform in long- run and how much profits they will make.
Interest rate directly affects the loan ratio, which is linked with banking transactions. Those businesses which are associated with banks and rely heavenly on taking out large loans are affected by the economic decision regarding interest rate fluctuations. The exchange rate has diverse effects of business; however, they significantly affect business which is linked with import and exports. Changing exchange rates may influence how a lot of an organization needs to pay to its global partners to fulfil them, which can influence overall revenues.
Taxes are an essential element of fiscal policies of the government which affect business, and usually, organisations make decisions by predicting next year’s fiscal policy. Increase in taxes negatively affects the revenue generation of businesses, and it affects their profitability. On the other hand, an increase in the gross domestic product (GDP) of a country positively affect businesses, and it helps businesses to go domestically, and globally it provides locals with job opportunities and more wealth generation for businesses. Furthermore, economic policy is also strongly linked with another all factors and play a vital role in overall business growth or decline in a country. In general, economics is an essential factor which can influence organizations. Although they relate to the economy on a broader scale, they significantly affect the inward activities of every business and organization.
