Answer:
The correct answer is option D
D. The 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure
Explanation: Option D is incorrect regarding federal reserve independence.
The answer for this question is: Stabilize the reaction
Chemicals with highly energetic reaction will have more risk to create high-energy force if we somehow fail to contain it safely.
When you need to evacuate, this type of reaction could create an explosion, so it's really advised to stabilize the reaction first.
Answer:
Lenders loose and borrowers gain
Explanation:
Whenever inflation increases the value of money falls and technically erodes interest rates (hence real interest rate falls although nominal rate stays the same)
In the scenario, if the inflation rate rises to 5.5%, then the real interest rate falls further from 1.5% to (5.75% - 5.5%) 0.25%, demonstrating that the lender is loosing further.
Contrarily, the borrower will technically be paying lesser interest to the lender because he will be paying lesser money in value to the lender both in terms of interest and principal
Answer: False
Explanation:
A sudden stop refers to the sudden decline in net capital inflows in the economy from outside. This is a significant method by which the economy can have access to foreign exchange.
If the country therefore borrows internationally in foreign currencies whilst lending in domestic currency, the sudden stop will be difficult to navigate because it will impair the country's ability to pay off the international creditors it has because it will not have enough of the required foreign currency to pay them.
