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zavuch27 [327]
3 years ago
15

Assuming that liquidity and interest rate expectations are both important for explaining the shape of a yield curve, what does a

flat yield curve indicate about the market’s perception of future interest rates?
Business
1 answer:
stepan [7]3 years ago
4 0

Answer:

A flat yield curve indicates that there is perception that there will be little difference in the future short term interest rate and long term interest rate.

Explanation:

Yield curves are used to illustrate yield of a bond over a period of time. It is illustrated graphically in the attached.

It gives an idea of variations in short term and long term rates in the future.

A rising yield curve indicates that investors will get higher yield as time goes on.

However when the grid curve is flattening it means there is no foreseeable increase in yield in the future.

Flattening of yield curve occurs when there is anticipation of slow economic growth.

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Please help meeee!!!!!
mestny [16]

Answer:

Banks are owned by shareholders, while credit unions are owned by members

Explanation:

Banks are financial institutions established by the founders to make profits. Due to their capital requirements, banks are large corporations owned by the private sector or government. Like other corporations, the owners of a bank are its shareholders.

Large organizations form credit unions to cater to their employees well being. Credit unions are not for profit organizations since they are formed to cater to its members' well beings. It means membership to the credit union is limited to the founding organization's employees unless otherwise stated. The members of the credit unions are its owners.

8 0
3 years ago
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
Lostsunrise [7]

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
  • When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
  • The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
  • Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

To learn more about lineage, refer to:

brainly.com/question/18939014

#SPJ4

7 0
2 years ago
If a Starbucks vanilla latte costs $5 in Seattle and 4 euros in Paris, what must the exchange rate be if purchasing power parity
anzhelika [568]
D <span>20 euros per dollar</span>
7 0
3 years ago
Mandy Ewing has been working as a veterinarian's assistant for almost a year. Her friend recently told that her employee was in
Crank

Answer:

The correct answer is letter "B": Fair Labor Standards Act.

Explanation:

The Fair Labor Standards Act or FLSA is the U.S. federal law that sets regulations on employees' payments. The FLSA aims to provide fair wages to all workers by <em>establishing minimum wages</em>, compensations for overtime work, and it also builds barriers for child labor.

6 0
3 years ago
How do we know how much to fix when selling a house?
Sophie [7]
Depending on the location if the house and how much you want to sell it for. Just make sure basic things such as Holes in wall’s are fixed or more noticeable details. Otherwise if the house is in good shape and appliances, heating, water are all fine then not a lot.
5 0
3 years ago
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