A borrowed reserves target is <u>procyclical</u> because increases in income <u>increase</u> interest rates and discount loans, causing the fed to <u>increase</u> the monetary base, and everything else held constant.
<h3>
What are interest rates?</h3>
- The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount.
- Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
- A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD).
- The interest received on these deposit accounts is measured in annual percentage yields (APY). Simple interest is used in most mortgages.
- Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
- The interest rate will be lower for a borrower who the lender deems to be low risk.
To learn more about interest rates with the given link
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Answer:
-1 to +1
Explanation:
The correlation coefficient range is from -1 to +1.
-1 shows that there is perfect negative correlation.
+1 shows that there is perfect positive correlation.
0 shows there is no correlation.
Positive correlation shows that with the increase of let's say X, there would also be increase of Y. They would positively move together
Negative correlation shows that two variable move in opposite direction.
Answer:
a) Find the attached jpeg file for the cash flow diagram
b) The company should purchase Device B.
Explanation:
a) Draw cash flow diagram for each option
A project cash flow diagram is a tool that is used to present a visual representation of the cost of a project and cash it is expected to generate over a specified period of time. On the diagram, x-axis represents the year, and y-axis represents cash out flows and/or inflows.
Note: See the attached jpeg for the cash flow diagram.
b) If interest rate is 7%, which device should your company purchase?
To determine this, we compare the Net Present Value (NPV) of the 2 devices.
Note: See the attached excel file for the calculation of the NPVs of the two devices.
From the attached excel file, we have:
NPV of Device A = $230
NPV of Device B = $262
Decision: Since $262 NPV of Device B is greater than the $230 NPV of Device A, <u>the company should purchase Device B.</u>
Answer:
15%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 0.9 × (16% - 6%)
= 6% + 0.9 × 10%
= 6% + 9%
= 15%
Since the expected rate of return is 15% and its expected to earn is 14%. So, the expected or minimum rate of return is 15%
Answer:
may conflict with an organization's legitimate interests.
Explanation:
The right to privacy of an employee may conflict with an organization's legitimate interests.
Right to privacy generally refers an individual's rights that is backed within the context of the law of the country of that individual. In an employee-organization's situation, the right to privacy generally refers to the concept that the employee's private information is shielded from the eyes of the public.
<em>While the right to privacy may not take priority over other moral consideration (take the case of embezzlement of funds in a workplace for examples) and may not be given up in the face of competition, it may also be a bit fuzzy and not clearly spelled out by the law. However, it may sometimes conflict with the legitimate interests of an individual's organization.</em>