Which of the following statements is correct? 1. The federal funds rate is derived based on...

Which of the following statements is correct?

1. The federal funds rate is derived based on the prime rate.

2. The discount rate is the rate banks charge one another on overnight loans.

3. The prime rate involves longer, more risky loans than the federal funds rate.

4. The federal funds rate is the rate banks charge their most creditworthy customers.

Expert Solution

Rahul Sunny answered 2 years ago

1. Which of the following statements is correct regarding the Fed? a. Under the Federal Reserve...

1. Which of the following statements is correct regarding the Fed? a. Under the Federal Reserve System, there is one Federal Reserve Bank whose location changes every 14 years. b. Under the Federal Reserve System, there is one Federal Reserve Bank, located in Washington D.C. c. Under the Federal Reserve System, there are 12 Federal Reserve banks, one in each of the 12 Federal Reserve districts. d. Under the Federal Reserve System, there is a Federal Reserve Bank in each...

Question 3 (1 point)Which of the following statements is not correct about Exchangetraded funds...

Which of the following statements is not correct about Exchange traded funds (ETFs)? a) ETFs limit diversification benefits b) ETFs are funds an investor can buy or sell on a stock exchange c) ETFs are open-ended d) ETFs represent shares of ownership The spot and 180day forward rates for the euro are $1.3310 and $1.3402, respectively. The euro is said to be selling at a forward a) discount of 1.4% b) premium...

1) Which of the following statements is correct?

1) Which of the following statements is correct? a. If a project has an IRR greater than the required return, the NPV of the project should be positive. b. Major strengths of the traditional payback method include the fact that it accounts for time-value-of money and for cash flows subsequent to the payback period. c. The typical payback for the cost of a student’s education at WWU is at least 20 years. d. Of all the capital budgeting methods,...

which of the following statements about the loanable funds market is (are) correct? (x) When the...

which of the following statements about the loanable funds market is (are) correct? (x) When the supply of loanable funds shifts to the right then the equilibrium real interest rate decreases and the equilibrium quantity of loanable funds decreases. (y) When the demand for loanable funds shifts to the right then the equilibrium real interest rate increases and the equilibrium quantity of loanable funds increases. (z) If the demand for loanable funds shifts to the right and the supply of...

Which of the following statements is not correct? a. The modified internal rate of return is...

Which of the following statements is not correct? a. The modified internal rate of return is similar to the realized compound yield method used with bonds. b. The modified internal rate of return attempts to correct the reinvestment rate assumption implicit with the internal rate of return method. c. The modified internal rate of return takes the outflows back to the present time and the inflows to the terminus of the project. d. The modified internal rate of return solves...

1) What is the federal funds rate? 2) How does the current 2.00-2.25% federal funds rate...

1) What is the federal funds rate? 2) How does the current 2.00-2.25% federal funds rate affect consumers today? 3) How does an increasing federal funds rate up to 2.5% by next year mean for the economy?

Which of the following are TRUE about the Federal Funds Rate? (Select all that apply.) a....

Which of the following are TRUE about the Federal Funds Rate? (Select all that apply.) a. It is influenced by the Federal Reserve b. It is a rate at which banks can borrow long-term cash reserves c. It is set in the market d. It is the rate at which banks can borrow cash reserves on an overnight basis e. It is the rate at which individual investors may borrow cash from the Federal Reserve

Which of the following statements concerning target date mutual funds is correct? (A) Asset allocations...

Which of the following statements concerning target date mutual funds is correct? (A) Asset allocations by these funds are made on the basis only of time horizon. (B) Asset allocations for target funds with the same target must be the same. (C) Asset allocations will change in these funds as retirement approaches. (D) Asset allocations for these funds will change as the market conditions change.

Which of the following statements is correct? Question 1 options: 1) A messaging-based workflow system sends...

Which of the following statements is correct? Question 1 options: 1) A messaging-based workflow system sends work assignments through an email system. The workflow system automatically tracks the order for the work to be assigned; and each time a step is completed, the system automatically sends the work to the next individual in line 2) Database-based workflow systems store documents in a central location and automatically ask the team members to access the document and work on it simultaneously 3)...

What is the federal funds rate? Would you classify the federal funds rate as a policy...

What is the federal funds rate? Would you classify the federal funds rate as a policy instrument, and operating target, an intermediate target, or a policy goal? Explain.

Question