Question
In: Finance
The purchase of which of the following products is most affected by interest rates? A) Around-the-world...
The purchase of which of the following products is most affected by interest rates?
A) Around-the-world cruise
B) Season tickets to a sporting event
C) Motorcycle
D) Apartment
Solutions
Expert Solution
Answer is option D) Apartment.because it involves very long payment periods and involves very bigger amounts when compare to other options.when the interest rates are low people show interest in buying houses because of low cost and vice versa.
jeff jeffy answered 2 years agoRelated Solutions
Which of the following investments is most affected by changes in the level of interest rates?...
Which of the following investments is most affected by changes
in the level of interest rates? Suppose interest rates go up or
down by 50 basis points(+/- 0.5%). Rank the investments from most
affected (largest change in value) to least affected (smallest
change in value).
(a) $1 million invested in short-term Treasury bills.
(b) $1 million invested in STRIPS (zero coupons) maturing in
December 2025.
(c) $1 million invested in a Treasury note maturing in December
2025. The note pays...
You are an investment manager in Denmark. You see different interest rates around the world and...
You are an investment manager in Denmark. You see different
interest rates around the world and your foreign exchange trading
team (as always staffed by Stern alums) has provided you with the
current spot rate and an expected future spot rate between the
Danish and Mexican currencies. Hint/Warning: Be sure to check if
you’ve adjusted interest rates for period and if you are really
looking at “e” in the info.
*Current spot exchange rate is 3.60 Pesos per Danish Krone....
Which of the following statements regarding bond prices and market interest rates are most likely to...
Which of the following statements regarding bond prices and
market interest rates are most likely to be true?
1. Interest rate risk can be described as the changes in market
interest rates that will cause fluctuations in a bond’s price.
2. Bond prices and market interest rates are negatively related
to each other.
3. Coupon paying bonds will trade at a premium to their face
value because of the future cash flows expected by bond
investors.
Which of the following events would most likely explain a general increase in interest rates and...
Which of the following events would most likely explain a
general increase in interest rates and a decrease in private
investment in the loanable funds model, ceteris paribus?
A. The U.S. federal government generates a surplus of $1
trillion and uses it to pay down the national debt.
B. The U.S. federal government budget goes from deficit to
surplus.
C. The U.S. federal government reduces the tax rate on
savings.
D. The U.S. federal government budget deficit increases.
_______________________________________________________________________________________________________________________________________________
2....
Which of the following is the most abundant protein in the animal world?
Which of the following is the most abundant protein in the animal world?
(A) RuBisCO
(B) Keratin
(C) Collagen
(D) All of these
1. Which of the following pulmonary measurements will be most affected in an individual with COPD?...
1. Which of the following pulmonary measurements will be most
affected in an individual with COPD?
a.) SVC
b.) Percentage of the FVC that can be exhaled in 1 sec
(FEV1/FVC)
c.) Total lung capacity
d.) Tidal Volume
2. The Biodex Balance System may be used to assess
a.) Two of the choices listed
b.) All the the choices listed
c.) balance deficits associated with a head injury.
d.) risk of falling.
e.) unilateral postural stability on an unstable surface....
Which of the following statements is true?A. Life expectancy around the world was much higher...
Which of the following statements is true?A. Life expectancy around the world was much higher 70 years
ago than it is today.B. Life expectancy around the world was much lower 70 years
ago than it is today.C. There is no gap between the life expectancy rates in rich
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rate around the world.Consider two countries: A and B. In country A, the annual
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The recent COVID-19 pandemic has affected not only the healthcare systems all around the world but...
The recent COVID-19 pandemic has affected not only the
healthcare systems all around the world but it has also given rise
to severe economic crises all over the world. The main argument
that is heard about lockdowns is that there should be a balance
between the health situation of people and the related economic
impact of lockdowns as well. Analyze this statement in light of
critical thinking concepts that you have learnt in class. Your
response should not be more...
The recent COVID-19 pandemic has affected not only the healthcare systems all around the world but...
The recent COVID-19 pandemic has affected not only the
healthcare systems all around the world but it has also given rise
to severe economic crises all over the world. The main argument
that is heard about lockdowns is that there should be a balance
between the health situation of people and the related economic
impact of lockdowns as well. Analyze this statement in light of
critical thinking concepts that you have learnt in class. Your
response should not be more...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all...
Monitoring the Cost Of Money: Interest
Rates
Interest rates, the cost of money, influence most all factors
related to personal and corporate capital budgeting. The more
obvious personal information for the cost of money is the rates
associated with a mortgage or car loan. As a CFO you would “shop”
interest rates to find the best rate for your financing needs.
1. Would you, as the CFO, finance your projects as soon as
possible if the cost of capital was...
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