I am thinking of expansionary because the federal reserve will probably inflation the money supply to help other systems of the military branch and security
Answer:
When financing a vehicle, the lienholder is the bank or company that loaned you money in order to purchase the car. The lender holds a lien against the car, giving them the legal right to take possession of the car if you fail to settle your debt. That institution's name will appear on the title of your vehicle and your car insurance policy for the duration of the loan. Buying or selling a car with a lien is perfectly legal, but the process takes more work, and it poses some inherent risks to the buyer.
Explanation:
A lien is the legal right to take possession of a piece of property if the debt underlying that property is not settled. A lienholder (also known as a lienor) is a person, company, or financial institution that co-buys that property or sells it to you on credit. For example, if your local bank writes you an auto loan to finance your car, they are the lienholder. You are the practical owner of the car. You have exclusive rights to use and even sell the vehicle, assuming you can pay off the loan.
But as long as the lienholder has a financial stake in your vehicle, they're the legal owner, and their name will appear on important documents. This is a different situation than leasing a car in that, when you lease a car, the lessor is the full owner of the vehicle, and you are merely renting it from them. You cannot legally sell a car you're only leasing.
Answer:
Nominal Interest rate
Explanation:
According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money. So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.
Answer:
The answer is a. 14.33.
Explanation:
We apply the net present value (NPV) methodology to approach the two options.
+ The lifetime subscription's npv = $(850)
+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.
To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:
85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.
So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.
So, a is the correct choice.