Write the two types of interest rates used in equivalence calculation rates?

Q: Is everybody worse off when interest rates rise?

A: The interest rate is the rate charged by the lender on the asset lend by them. The asset lend can be…

Q: Discuss briefly how do interest rates affect the economy?

A: The amount of interest due per year, expressed as a percentage of the amount lent, invested, or…

Q: If government spending were increased, what would occur to interest rates

A: Government spending refers to the money spent by the government on things like health care,…

Q: WHAT IS THE IMPORTANCE OF BALANCE OF PAYMENT IN OUR ECONOMY?

A: Balance of Payment account of the economy records the transactions of goods and services  between…

Q: What is current yield?

A: Investments in the economy are important for the development, progress, and growth of economies…

Q: What is the difference between Market and Inflation-Free Interest Rates?

A: Market and inflation free interest rate are entirely different concepts. Market is the place that…

Q: Describe how interest could be  good or bad, depending on the situation, and explain why interest…

A: If properly managed, a LOW INTEREST RATE can be beneficial. Low interest rates reduce demand for the…

Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…

A: Given information,  Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…

Q: Which situation leads to the distinction between nominal and effective interest?

A: If the compounding is more frequent than once per year, then the nominal and effective interest rate…

Q: What are two advantages and one disadvantages of using cash as THE MAIN medium of exchange?

A: Medium of exchange: -any item that can be accepted as an exchange for goods and services serves the…

Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously?

A: Suppose the present value of sum be P and future value of the sum is A

Q: Why do bonds trade at prices different than par

A: Bond:- A bond is regarded as a definite-income asset because it pays bondholders a guaranteed return…

Q: How change in bond yield affect the economy?( 2000 words)

A: Monetary policy, specifically the direction of interest rates, has a significant impact on bond…

Q: How do interest rates affect bond yield and bond prices.

A: Bonds are a form of financial security in case of which the issuer owes the holder a debt. Borrowers…

Q: Evaluate (discussing positives and negatives of) the effect of interest rates on consumer choices.

A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower.

Q: complete this sentence: High interest rates might might purchasing a house, but at the same time…

A: High interest effects both the borrower and lender in the different manner As interest rate…

Q: What are the applications of partial derivatives in economics?

A: The derivative of a function of a single variable that depicts quickness of change in function value…

Q: If the yield curve suddenly became steeper, how wouldyou revise your predictions of interest rates…

A: The yield curve represents the relationship between the yields of fixed interest securities and…

Q: What might cause interest rates to be low one year and high the next?

A: Interest rates are best thought of as the "cost of money." If a borrower wishes to spend more money…

Q: How can market forces of supply and demand affect interest rates and the economy

A: The demand and supply affect interest rates in the money market. The money market is the market that…

Q: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed…

A: Financial economics deals with the financial markets, their operations and functions, and the…

Q: Distinguish between Market and Inflation-Free Interest Rates?

A: The Market interest Rate, also called the nominal interest rate (i) is the rate which is not…

Q: Retired persons often have much of their wealth placedin savings accounts and other interest-bearing…

A: Real interest rate refers to the interest rate that subtracts the inflation rate from the nominal…

Q: Discuss (IN DETAIL) the components of Balance of Payment

A: The Balance of Payments is a statement that records all monetary transactions between a country's…

Q: How the time based term effects interest rates and its yield curve?

A: A yield curve is a graph that compares the yields (interest rates) of bonds with similar credit…

Q: Explain what is interest Rate Swaps (IRS) and Who are the parties in an IRS.

A: Interest rate swaps (IRSs) are interest rate derivatives in the financial industry (IRD).  It's a…

Q: Explain the bond markets in the real world.

A: A bond is an advance that the bond buyer, or bondholder, makes to the bond backer. Governments,…

Q: What are the effects of balance of payment surplus?

A: When other things remain the same, balance of payment surplus in the fixed exchange regime leads to…

Q: How can we calculating effective Interest Rates based on Payment Periods?

A: The effective annual interest rate is the interest rate on investment or return on a savings account…

Q: What is meant by the neutrality of nominal interest rates?

A: In an economy, interest rate refers to the proportion of the actual money that an individual has to…

Q: At what rate of interest compounded annually will an investment double in five years? Find the…

A: The formulae for compounding is A=P(1+r)t A: Accumulated wealth P: Principle payment r: Annual…

Q: Why interest rates differ at any given time a range of interest rates prevails in the economy. what…

A: The money market equilibrium is determined where money demand is the money supply. It helps in…

Q: In what sense can you use commodity swaps to achieve the same goal as in signing commodity futures?…

A: Commodity swaps and commodity futures are used for hedging and speculation in the commodity market.…

Q: what is high interest rates?

A: In an economy, interest rate is one of the economic term used at the marketplace when people make an…

Q: 6. You have a balance of $1,500 on the credit card described in q5. You make the minimum payment…

A: Annual rate % (Nominal interest rate) : 10.95% Compounding : Monthly (12/Yr)   => The Effective…

Q: why does selling bonds by the Treasury to the financial market raise interest rates

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: what are the economic goals of high-interest rate?

A: The interest rate is a proportion of the principal, which is the amount borrowed, that a lender…

Q: Explain the three accounts of the balance of payment?

A: Three accounts of balance of payment are: 1) Current account - To track the inflow and outflow of…

Q: Who benefit from the laws and who loses when countries have policies that limit how much interest a…

A: The interest rate is the income earned by the capital in the economy. It is the reward paid to…

Q: Explain the relationship between a forward contract and a swap.

A: Derivatives are financial instruments whose value is determined by one or more underlying…

Q: you were offered either a simple interest note or a simple discount note with the following terms:…

A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…