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oksian1 [2.3K]
2 years ago
12

Savers make deposits and investments in order to earn what?

Business
1 answer:
lyudmila [28]2 years ago
3 0

Answer:

Savers make deposits and investment in order to earn interest on their money. This often works very well because they do not earn only interest as a percentage of their money, but also interest as a percentage of previously accrued interest, something known as compound interest.

Savers do not invest their money directly with the businesses because real economic activity tends to be riskier (although it could also be more profitable for this same reason). This is why they often prefer to invest the money on financial instruments.

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Assume that the money demand function is (M/P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M is 2
liubo4ka [24]

Answer: The nominal money supply should set at 1,600.

Explanation:

Given that,

Money demand function: (M/P)d = 2,200 – 200r

r - Interest rate

Money supply (M) = 2,000

Price level (P) = 2

If the fed wants to set the interest rate at 7% then,

Money supply = money demand

(\frac{M}{P})^{s} = (\frac{M}{P})^{d}

\frac{M}{P} = 2,200 – 200r

P = 2 and r = 7%

\frac{M}{2} = 2,200 – 200 × 7

                            M = 800 × 2

                            M = 1,600

The nominal money supply should set at 1,600.

6 0
3 years ago
Which sentence indicates that Roger's company, Fine Jewelry, follows a subscription business model? Roger's company, Fine Jewelr
nlexa [21]

Answer:

Its "Customers get a new piece of jewelry every three months.

Explanation:

The first option, never tells what the customer gets in return.

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6 0
3 years ago
Andrew volunteered for the American Red Cross after a recent hurricane. He traveled 200 miles and helped the victims of the disa
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Answer: 1.

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3 0
3 years ago
Read 2 more answers
Organizations have three levels of management: first-line, middle, and top. Each of the managers at these levels has different l
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Management is of three levels. managerial, middle and top level management.

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levels of management can be defined as a part of an organization that maintains responsibility for the overall productivity and the work performance of employees.

Managerial or top level management consists of board of directors. It also consists of the board of directors. Executive or middle level management consist of line or department managers and in this level mostly the managers report top the top level management. next lowest level is the operative or supervisory level management.

Thus mostly consists of supervisors, first line managers. It comes under the organisational hierarchy of a company. top management is responsible and controls the entire organisation.

8 0
3 years ago
Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annu
vladimir2022 [97]
4.65% is the component cost of the debt for use in the wacc calculation
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