Q 39) You wish to make a loan earning 2% in real terms. If current CPI is 1.066 and you think it will be 1.083 next year, what is the nominal interest rate you will charge? If the CPI actually turns out to be 1.09, what will be your actual ex-post real return? 37) Current interest rates are as follows: 1 year 4%,2 year 6%,3 year 7%. According to the pure expectations theory, what is the one year interest rate for the next two years? Explain how the term structure predicts economic activity using the monetary policy story

Answers

Answer 1

Actual ex-post real return = -0.0496 or -4.96%

39) To calculate the nominal interest rate, we need to use the formula:

Nominal interest rate = (1 + Real interest rate) * (1 + Expected inflation rate) - 1

Given that the real interest rate is 2%, the current CPI is 1.066, and the expected CPI next year is 1.083, we can calculate the nominal interest rate as follows:

Nominal interest rate = (1 + 0.02) * (1 + (1.083 - 1.066)) - 1
Nominal interest rate = (1.02) * (1 + 0.017) - 1
Nominal interest rate = 1.02 * 1.017 - 1
Nominal interest rate = 1.03774 - 1
Nominal interest rate = 0.03774 or 3.774%

If the actual CPI turns out to be 1.09, we can calculate the actual ex-post real return using the formula:

Actual ex-post real return = (1 + Nominal interest rate) / (1 + Actual inflation rate) - 1

Given that the nominal interest rate is 3.774% and the actual inflation rate is (1.09 - 1), we can calculate the actual ex-post real return as follows:

Actual ex-post real return = (1 + 0.03774) / (1 + (1.09 - 1)) - 1
Actual ex-post real return = 1.03774 / (1.09) - 1
Actual ex-post real return = 0.9504 - 1
Actual ex-post real return = -0.0496 or -4.96%

The actual ex-post real return is negative, indicating a loss.

37) According to the pure expectations theory, the one-year interest rate for the next two years can be estimated by averaging the expected interest rates for those two years.

Given that the current interest rates are 4% for one year, 6% for two years, and 7% for three years, we can calculate the average as follows:

Average one-year interest rate for the next two years = (4% + 6%) / 2
Average one-year interest rate for the next two years = 10% / 2
Average one-year interest rate for the next two years = 5%

The term structure predicts economic activity using the monetary policy story by suggesting that changes in interest rates at different maturities can provide insights into market expectations about future economic conditions.

For example, a steep upward-sloping yield curve indicates expectations of future economic expansion, while an inverted yield curve suggests expectations of economic contraction.

This information can be useful for policymakers in determining appropriate monetary policy measures to support economic growth and stability.

The term structure of interest rates provides a valuable tool for analyzing market expectations and economic forecasting.

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Related Questions

The role of the Federal Reserve Board of Governors is to:
A. loan money to multinational corporations.
B. set discount rates and reserve requirements.
O c. enforce monetary policy on Federal Reserve banks.
O D. establish new Federal Reserve districts.

Answers

The role of the Federal Reserve Board of Governors is to enforce monetary policy on Federal Reserve banks. Hence, Option C is correct.

What is monetary policy?

In macroeconomics, there is a policy whose duty is to make sure that policies that are made by the  Board of Governors have been applied to all the central banks. This policy is known as monetary policy, which manages the flow or supply of money to all the banks.

This policy also manages the interest rate. Just like other policies, monetary policy also has some tools, With the help of these tools, it is easy to manage the policy. Tools are named as operations for the open market, requirements of the reserve, and lastly rate of discount.

Therefore, Option C is correct.

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Lydia is preparing financial statements for her company Who would be interested in the information provided in these financial statements? Financial statements are of prime importance to____, who will use the information to buy or sell stocks of the company. These statements are also inspected by____to look into any irregularities or fraud in the book of accounts.

Answers

Answer:

Lydia is preparing financial statements for her company Who would be interested in the information provided in these financial statements? Financial statements are of prime importance to Investors  who will use the information to buy or sell stocks of the company. These statements are also inspected by an auditor to look into any irregularities or fraud in the book of accounts.

Explanation:

Investors

Investors are individuals or firms who offer capital to a business in exchange for a share in ownership and profits. They are external users of financial statements. Investors use financial statements to know what returns to expect from their investments. Existing and potential investors rely on financial reports to decide on whether to buy or sell their shares.

Auditor

An auditor is a skilled individual authorized to assess, evaluate, and validate financial statements' accuracy as prepared by a company.  The auditor reviews and gives a professional and independent opinion on the company's financial affairs.

Which position in a business manages cash and cash equivalents?


-financial accountant
-controller
-cost accountant
-treasurer

Answers

Answer:

Financial Accountant

Explanation:

Research some examples of organizations that experienced bad publicity and how they dealt with it. Write a paper detailing your findings.

Answers

Answer:

did you finish it cuase i got the same one

Explanation:

Admit the error, apologize, and present a solution if you or your company is receiving negative press as a result of anything you did incorrectly. Negative publicity won't disappear if you ignore it.

What do you mean by Negative publicity?

When damaging material is revealed, negative PR or publicity can take many different forms in company and can impact everything from sales to your reputation.

Various forms of unfavorable PR for your company could include: negative coverage of your business in the media, online, in publications, or on television.

In particular, we contend that by raising product awareness, unfavorable publicity might boost sales and purchase likelihood.

Negative publicity should therefore affect products differently depending on whether they are recognized or unknown. This viewpoint is supported by three investigations.

Your brand's reputation can be severely damaged in a matter of minutes by false information, negative reviews, and nasty social media remarks. Even worse, rumors spread swiftly and negatively impact the reputation of your company.

Negative publicity can have a significant impact on how potential customers see your brand. When customers publicly disparage a company, product, or service, this is known as bad publicity.

Bad publicity includes posting or publishing negative evaluations on websites, review pages, and social media accounts.

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Does anyone know what the definition of expanding manufacturing is?

Answers

Definition - To make your business grown larger or faster by diversifying your current product line

Hope this help :)

What is the difference between a salary and an hourly wage?​

Answers

Answer:

Explanation:

A salary stays the same amount no matter how many hours you work. An hourly wage, you get paid for each hour you work; you get payed on WHAT you work.

Select the best alternative for the following questions:
i. Which of the following transactions are not recorded in book keeping?
a) Sold Goods on Credit.
b)
Introduce capital in the business.
c) Resignation of marketing manager.
d) Drawing cash from business for personal use.
..​

Answers

Answer:

c. the resignation

Explanation:

this would not affect the bottom line of the company and is therefore irrelevant

The correct answer is c

How are technology and technical profession related

Answers

Without technology there would be no technical profession because technology is what technical profession is based off of

What type of industry would Tim Hortons and McDonalds be classified as?

Answers

they would be classified as restaurants

Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category?

Answers

Answer:

see below

Explanation:

The Zero-based budgeting technique assumes there will be no balance bought forward nor balance carried forward. Budget preparation for a particular period must start from zero or scratch. Each expense must be on merit. Income and expenses must match.  In the zero-based budget, the difference between income and expenditure must be zero.

If Sam has an income of $800 and expenses of $675, she has to re-work her costs again to ensure they match her income. The zero-based budget demands she draws her expenses list again and comes up with a way of spending the $125 difference.

Match the financial statement with its description. To match them, click the Description and then click the Financial Report Name

Answers

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

Financial statements refer to how company communicates their finance. The financial statement that reflects a company’s profitability is hereby given below.

Financial statements in sheets

The various accounting activities that precedes financial statements are hereby matched below:

A. Statement of retained earnings or owner's equity

Include information of owner's retained earnings and dividends.

B. Income statement - Revenues

Shows revenues and expenses over a period of time.

C. Statement of cash flow

shows money moving in and out, categorized by operations, investing and finance

D. Balance Sheet

A snapshot of a company's assets, liabilities and equity at a specific moment in time.

Therefore, the answers are Statement of retained earnings or owner's equity, Income statement - Revenues, Statement of cash flow, Balance Sheet respectively.

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The ability to organize and evaluate what you watch, hear, and read is known as

Answers

Answer:

critical thinking skills

Explanation:

the definition is this word

Automation has improved the quality and efficiency of repetitive tasks. True or False

Answers

Answer:True

Explanation:

Stear Corp. decides to deposit $1,000 in its bank account. This cash was paid from the cash register of the company. What will be the entry made by the accountant in the company’s journal?
A.
Cash in Bank Account (debit) 1,000 Cash Account (credit) 1,000
B.
Cash Account (debit) 1,000 Cash in Bank Account (credit) 1,000
C.
Cash in Bank Account (debit) 1,000 Register Account (credit) 1,000
D.
Deposit Account (debit) 1,000 Cash Account (credit) 1,000

Answers

Answer:

Cash Account (debit) 1,000

Cash in Bank Account (Credit) 1,000

Explanation:

Given

[tex]Amount = \$1,000[/tex]

Required

Write a journal entry

In this case:

The company deposits $1000.

This means that, $1000 will be debited from the company's cash account.

So, the entry for that will be:

Cash Account (debit) 1,000

In the same vein, $1000 will be credited into the company's bank account.

So, the entry for that will be:

Cash in Bank Account (Credit) 1,000

Answer:

A

Explanation:

The employees of xitrex, inc., are paid each friday. the company's fiscal year-end is june 30, which falls on a wednesday for the current year. salaries and wages are earned evenly throughout the five-day work week, and $11,000 will be paid on friday, july 2.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Debit side is not given on 30th June. So, no journal entry will made.

2. Salaries and wages expenses Dr, $6,600  ($11,000 × 3 ÷ 5)

          To Salaries and wages payable $6,600

(Being accrued wages and salaries is recorded)

Here the salaries and wages expense is debited as it increased the expenses and credited the salaries and wages payable as it also increased the liabilities

the liquid that pass through the filter is know as

Answers

Answer:

FILTRATE is the fluid that passes through a filter paper

RESIDUE is the left-over substances on the filter paper

FEED is the liquid poured on to the filter paper

It’s a filtrate

The clear liquid which passes through the filter paper is called the filtrate

Which of the following is the best definition of marketing?
All advertising done by a business
O Establishing a target market and maintaining it
O Thinking about what kinds of promotions a business should create
All methods of reaching and attracting potential customers

Answers

Answer: Marketing is an organizational function and a set of business activities designed to make profits.

Explanation:

Answer:

All methods of reaching and attracting potential customers.

Explanation:

This is because marketing is the practice of getting customers.

When a site is unsafe, it means a. Your personal information may be used in ways you do not want c. Permission to use that site at school is always allowed b. That site is okay to visit often d. All of the above Please select the best answer from the choices provided A B C D

Answers

Answer:A, Your personal information may be used in ways you do not want

Explanation:

If it is a unsafe site than there for your personal information can go places you do not want them to.

When a site is unsafe, it means your personal information may be used in ways you do not want. Thus, option 'A' is the correct option.

What does it mean when a website is unsafe?

External connections to websites with phishing, malware, or unwanted software are known as unsafe domains. Phishing is when a website imitates another one in an effort to fool visitors into divulging personal or financial information. When you visit an insecure website, you run the risk of having your personal information compromised and/or having malicious malware installed on your system.

Additionally, you can fall prey to a phishing attack, or someone else might watch your activity or use your resources for their own gain. If the content you're seeking to view is harmful or misleading, a warning will appear. These websites are frequently referred to as phishing or virus sites. If you clicked on a phishing link, the first thing you should do is immediately unplug your device from the internet.

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which savings account will earn you the most money

A: One that compounds interest monthly
B: One that earns simple interest monthly
C: One that compounds interest daily
D: One that earns simple interest daily ​

Answers

B hope this helps with your test

How many Tim Hortons franchises are there? (franchises not including franchisees)

Answers

4,932 worldwide franchises

Waylon is back-to-school shopping with his mom at a large department store. He’s picked out the following items: 3 pair of pants for $87 total, 4 t-shirts for $48 total, 1 backpack for $35, 1 hoodie for $26, 1 pair of shoes for $37. When they get to the register, they see this sign:

Answers

Answer: uhhhh

Explanation:

Answer: Waylon's Purchase will cost $198.05, and section B depends.

Explanation: Section A is 85% of 233 since thats the total, making the answer to section A $198.05. The answer to section B depends because if he wants more school supplies, then yes, he would want to buy more things for better deals. But if he’s on a budget, then he wouldn't want to spend as much money since saving 20% on something over $300 is more than saving 15% on something over $200. THIS IS ONLY THE ANSWER IF YOU SEE A SIGN IN THE ASSIGNMENT THAT SAYS: Spend $100, save 10%, spend $200, save 15%, spend $300, save 20%, and spend $400, save 30%.

What percent of the federal budget was spent on education in 2019?

Answers

Answer:

The President requests $59.9 billion in discretionary appropriations for the Department of Education in fiscal year 2019, an $8 billion or 12 percent reduction below the 2018 annualized Continuing Resolution (CR) level.

What are preferred stocks?

Answers

Answer:

See below

Explanation:

Preferred stocks are a special group of shares issued by a company to raise capital. They combine features of ownership and debts, which make them hybrid securities. Like bonds, preferred shares are issued at par value.

Preferred stocks pay fixed dividends following a set schedule. Holders of preferred shares do enjoy voting rights. However, they get preference in dividends sharing. They also enjoy priority claims to the company assets in case of a dissolution.

Answer:

The term "stock" refers to ownership or equity in a firm. There are two types of equity—common stock  and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.1  The details of each preferred stock depend on the issue.

The ______is a financial statement detailing a firm's assets, liabilities, and owners' equity.
A. balance sheet
B. statement of cash flows
C. manufacturing statement
D. income statement

Answers

I had this question before, the answer I got correct is D

The income statement is a financial statement detailing a firm's assets, liabilities, and owner's equity. Thus, option 'D' is the correct option.

What is an income statement?

One of a company's financial accounts, an income statement or profit and loss account, lists the company's revenues and costs for a specific time period. It describes the process through which revenues are converted into net income or net profit.

A period of time is represented by an income statement (as does the cash flow statement). The balance sheet, on the other hand, only depicts one point in time. There are two ways to create an income statement. The Single Step Income Statement calculates the net income by adding up all receipts and deducting all costs.

In order to get at the net income, the Multi-Step income statement makes a number of calculations, beginning with the gross profit and moving on to operational expenditure estimation. then, after taking the gross profit into account, you get income from operations.

Therefore, option 'D' (income statement) is the correct option.

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The Break-Even Point in your business is when


your company has repaid all of its debt

your company has exceeded its start up expectations

your company makes enough in revenue regularly to cover its expenses

your company repays all of the start up cost funding

Answers

Answer: In this letter you want to make sure that you are being clear and concise, so as to avoid any confusion about what your relationship will be in the future (ended). This means that you want to avoid any potential legal liability, and explain yourself in order to show that you are being fair and reasonable in your request.

Explanation:

9. Suppose the principal of a public school re-
quired all students to recite a prayer at the start
of each school day. What level of government
(federal, state, or local) would most likely deter-
mine whether or not the principal's action was
constitutional?

Answers

Answer: Federal government

Explanation:

Based on the scenario in the question, the federal government would most likely determine whether or not the principal's action was constitutional.

This is a national issue and shouldn't be left in the hands of the local or state government. It should be noted that in 1962, school sponsored prayer in the public schools was banned by the United States Supreme Court, on the basis that the First Amendment was being violated.

The court later ruled that students can meet and then pray on their respective school grounds so far it's done privately and no one is forced.

Hence, the federal government would most likely determine whether or not the principal's action was constitutional.

Why are personal care aides expected to be paid so little in spite of being in such great demand?

Answers

Answer: Because they were the least educated, (something to do with that).

Explanation:

Even when maintaining open communication, you should not discuss

Answers

Answer:

C....

Explanation:

i took the quiz on edge

Even in the case of the open communication, the person should not discuss about his personal life. Thus option (C) is correct.

What is the meaning of Open Communication?

Open communication refers to the way of the communication between the two or more persons who openly expresses and shares the ideas, thoughts, information, beliefs etc.

In every organization, the leaders, managers or subordinates should encourage the open communication in the form of the feedback and suggestions.

However, Even in an open conversation, the subject shouldn't bring up personal matters. Therefore, The correct option is (C).

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which of the following is a material used for salad making and dessert that need great care to ensure long shelf life?

A. glass
B. aluminium
C. cast iron
D. stainless steel ​

Answers

Answer:

I thoughts B becaisedvfdhjdshjhh

1. Give the three (3)
business resources​

Answers

Answer:

Financial Resources

Human Resources

Educational Resources

Explanation:

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