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- True or false 1. Interest Rate Parity allows a company to lock in profits by borrowing in the low interest rate currency and investing in the high interest rate currency? 2. When calculating Days Sales Oustanding, it is important to include all credit and cash sales in the equation.Investment is a larger portion of GDP than consumption, but is substantially less volatile. Investment rises OA. sharply during recessions and falls sharply during booms OB. slowly during booms and falls slowly during recessions OC. sharply during booms and falls sharply during recessions OD. sharply with exports and falls sharply with importsQ3. You borrowed $150,000 with a 30-years payback term and a variable APR that starts at 9% and can be changed every five years a. What is the initial monthly payment b. If, at the end of the five years, the lender's interest rate changes to 9.75% APR, what will the new monthly payment be?
- What is the market equilibrium price and quantity ? Typed and correct answer please.Why is money neutral in the short run in the real business cycle model? If money is neural what causes business cycles in the real business cycle model?( no plagarism)Answer Any two questions Q1. What is financial market? Explain its functions.
- Q2. Who are the different dealers in the stock exchange? Mention 5 of themQuestion Since the high cost of rent has been an issue, I've been wondering what would happen if the rent was set at a percentage of the minimum salary after taxes? What would happen if the maximum rent that could be charged was 30 or 40% of someone's take-home pay? Due to my limited understanding of sophisticated economic systems and how they interact with one another, I've tried to uncover any material that relates to this subject but have been unable to do so. My main hope is that pursuing this line of thought will lead to a solution that allows you to pay rent and advance in your career regardless of your Income.Construct the cost living index number by (i) Aggregative expenditure method. (ii) Family budget method for the year 2004 taking 200 as base. Commodity Quantity Unit price($) 2000 2004 |2 Qnts Qnt 25 kg Qnt 10 kg kg kg 25kg Clothing 25 met Meter 4 Qnts Qntl |House woeat 50 75 Rice 100 120 Sugar Pure Ghee5 kg Veg. Ghee 5kg Qnt 80 120 10 10 Oil Qnt 200 200 4 Fuel 8 10 Rent |One 20 25
- 7. If a consumer views a unit of consumption in period 1 as a perfect substitute (one for one) for a unit of consumption in period 2 and if the real interest rate is positive, the consumer will А. consume only in period 1. В. consume only in period 2. С. consume equal amounts in each period. D. consume more in period 1 than in period 2 if income elasticity exceeds 1, otherwise consume more in period 2 than in period 1. Е. equalize expenditures but not consumption in the two periods. 8. The nominal interest rate is 2% and the inflation rate is 3%. A rational consumer А. will not save since the real interest rate is negative. В. will save less than 1% of her income. С. will save the same amount regardless of the inflation rate; only the nominal interest rate matters. D. might save despite the negative real interest rate. Е. will necessarily save less if the inflation rate rises and the nominal interest rate does not change.B Why do lenders need liquidity? to qualify for FHA insurance so they can put their money in long- term assets so they have the funds to originate more loans so loans can be packaged together to create MBSS 19:31 ✓What form of hypothesis state that stock prices reflect all relevant information, including inside information. a. Strong b. Weak c. Semi-strong d. Perfect