Question
In: Economics
Katarina puts money into an account. One year later she sees that she has 6 percent...
Katarina puts money into an account. One year later she sees that she has 6 percent more dollars and that her money will buy 4 percent more goods. The nominal interest rate was
a. 10 percent and the inflation rate was 6 percent.
b. 6 percent and the inflation rate was 2 percent.
c.4 percent and the inflation rate was 2 percent.
d. 10 percent and the inflation rate was 4 percent.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
1Mia puts money into a piggy bank so she can spend it later. What function of...
1Mia puts money into a piggy bank so she can spend it later.
What function of money does this illustrate
store of value
medium of exchange
unit of account
None of the above is correct.
2) The primary difference between commodity money and fiat money
is that
commodity money is a medium of exchange but fiat money is
not.
fiat money is a medium of exchange but commodity money is
not.
commodity money has intrinsic value but fiat money does...
Last year, the yield on AAA-rated corporate bonds averaged approximately 5 percent; one year later, the...
Last year, the yield on AAA-rated corporate bonds averaged
approximately 5 percent; one year later, the yield on these same
bonds had climbed to about 6 percent because the Reserve Bank of
Australia increased interest rates during the year. Assume that BHP
Billiton Limited issued a 10-year, 5 percent coupon bond one year
ago (on 1 January). On the same date, Rio Tinto Limited issued a
20-year, 5 percent coupon bond. Both bonds pay interest annually.
Assume that the market...
Last year, the yield on AAA-rated corporate bonds averaged approximately 5 percent; one year later, the...
Last year, the yield on AAA-rated corporate bonds averaged
approximately 5 percent; one year later, the yield on these same
bonds had climbed to about 6 percent because the Reserve Bank of
Australia increased interest rates during the year. Assume that BHP
Billiton Limited issued a 10-year, 5 percent coupon bond one year
ago (on 1 January). On the same date, Rio Tinto Limited issued a
20-year, 5 percent coupon bond. Both bonds pay interest annually.
Assume that the market...
1) Tuya Miya puts 10,000 euros in a savings account that pays 5% annually. She wants...
1) Tuya Miya puts 10,000 euros in a savings account that pays 5%
annually. She wants to buy a 20,000 euro car with her savings. With
this investment plan, how many years will it take her to reach her
goal?
2)To save for her newborn son's college education, Kelli
Peterson will invest $1,500 at the end of each year for the next 18
years. The interest rate she expects to earn on her investment is
9%. How much money will...
a man puts 100 dollars in a bank account every six months. this account has 10%...
a man puts 100 dollars in a bank account every six
months. this account has 10% compound interest that happens once
yearly. how much money will be in this account after 18
years
Zana has a money market account that earns 1.2% interest. She wants to purchase a matched...
Zana has a money market account that earns 1.2% interest. She
wants to purchase a matched pair of French Bull Dogs for $3,600.
How much must she set aside (invest) monthly so that she can buy
them in two years?
If you deposit $2,000 at the end of each of the next 18 years
into an account paying 4.2% interest, how much money will you have
in the account when you retire?
You invest in annuity paying $4,000 a year,...
8. Ann deposited RM1,000 in a bank account, and 10 years later she closes out the...
8. Ann deposited RM1,000 in a bank account, and 10 years later she
closes out the account,
which is worth RM2,158.90. What annual rate of interest has she
earned over the 10
years?
1. Suppose the velocity of money is constant. Real GDP grows by 6 percent per year,...
1. Suppose the velocity of money is constant. Real GDP grows by
6 percent per year, the money stock grows by 10 percent per year
and the real interest rate is 5 percent. According the information
above the nominal interest rate is ____________ percent.
a. 1
b. 9
c. 16
d. 4
e. 11
2. The natural rate of unemployment may be reduced by
a.
increase in minimum wages.
b.
efficiency wages.
c.
generous unemployment insurance.
d.
public retraining...
13. During the last tax year you lent money at a nominal rate of 6 percent....
13. During the last tax year you lent money at a nominal rate of
6 percent. Actual inflation was 1.5 percent, but people had been
expecting 1 percent. This difference between actual and expected
inflation
A. transferred wealth from the borrower to you (lender) and caused
your after-tax real interest rate to be 0.5 percentage points
higher than what you had expected.
B. transferred wealth from the borrower to you (lender) and caused
your after-tax real interest rate to be...
The National Bank of Mayville quotes an APY of 3.5 percent on a one-year money market...
The National Bank of Mayville quotes an APY of 3.5 percent on a
one-year money market CD sold to one of the small businesses in
town. The firm posted a balance of $2,500 for the first 90 days of
the year, $3,000 over the next 180 days, and $4,500 for the
remainder of the year.
How much in total interest earnings did this small business
customer receive for the year?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
ADVERTISEMENT