True it will cause a movement
When the Federal Open Market Committee allows treasury securities to be sold in the open market, the result is a) decreases the money supply.
<h3 /><h3>What happens when treasury securities are sold?</h3>
When treasury securities are sold by the FOMC of the Federal Reserve, people will buy those securities which means that the Federal Reserve gets that money.
As a result, the money supply in the economy will decrease as the amount of money in the economy will be reduced by the amount that went to the Fed.
In conclusion, when treasury securities are sold on the open market, this decreases the money supply.
Find out more on open market operations at brainly.com/question/14256204
#SPJ1
Democracy have a broad appeal as the political system around the world because it gives the citizen more power to select their representatives exercising their votes.
Explanation:
The meaning of democracy is a form of government which is selected by the citizens of that country. Democracy gives power to the people in the form of votes through which they can elect their representatives to whom they find eligible or suitable to run a particular area, state and country.
This type of government works for the people for their betterment and development because the selected candidates know that they can be eliminated after a certain time if they wouldn't work according to citizen's preferences.
Answer:
Ans.
a. The effective interest rate on the LIBOR loan is 8.95%
b. The loan with the lower effective rate is the LIBOR.
Explanation:
Hi, well, the Prime loan is pretty straight forward, the cost is 9%, on the other hand, the LIBOR loan requires some work. First, we have to find the future value of the loan, that is:
That is:
In order to find the effective rate of the loan, and knowing that it is going to be paid one year from now, we need to use the following formula.
So, the cost of the LIBOR loan is 8.95% effective annual, and still lower than the PRIME loan.
Best of luck.
