She will be indifferent between these plans if her rate of time discount is equals 21 percent. If her rate of time discount is less than this amount she will opt for a plan B.
<h3>What is
discount rate?</h3>
The bank rate, sometimes known as the discount rate in American English, is the interest rate charged by a central bank on its loans and advances to commercial banks.
In a discounted cash flow (DCF) analysis, the discount rate is the interest rate used to calculate the present value of future cash flows. This helps establish whether the future cash flows from a project or investment will be worth more than the initial capital outlay required to support the project or investment.
The discount rate is an essential measure of an economy's credit situation.
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To increase the money supply using the open market operation strategy, the Fed should buy Treasury Bonds.
<h3>How can the Fed increase money supply?</h3>
Increasing money supply would mean the Fed releasing more currency into the U.S. economy.
This can be done by buying back treasury bonds from the public because the Fed would pay for those bonds with currency which would then float into the economy.
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The New York Federal Reserve Bank Group of president always gets to vote at the FOMC meetings.
A. president always gets to vote at the FOMC meetings.
<u>Explanation:</u>
The FOMC (Federal open market committee) is the the group which implements policies for the federal reserve systems. The New York Federal Reserve Bank Group, The president always gets to vote at the FOMC meetings.
There are 12 members who can vote and nine of the voting presidents of the reserve bank vote once in every three years. The president of the federal reserve bank also votes. the votes are casted in a rotating basis.
The reasons why it is crucial to form positive customer relationships as a novice entrepreneur are:
- Customers are the lifeblood of a business
- it gives the entrepreneur more information about the customer's problems and how they can be solved
- It builds trust and trust translates to improved buying decisions
- happy customers create more opportunities for your business.
<h3>What are the keys to positive customer relationships?</h3>
The keys to positive customer relationships are:
- great communication
- empathy
- Rewarding loyalty
- Seeking feedback
- consistency etc.
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