which of the following events shifts the short-run aggregate-supply curve to the right? a. an increase in government spending on military equipment b. an increase in price expectations c. a drop in oil prices d. a decrease in the money supply e. none of the above

Answers

Answer 1

A drop in oil prices shifts the short-run aggregate-supply curve to the right. Due to  drop of oil price this raised.

The spot price of a barrel (159 liters) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Isthmus, and Western Canadian Select. Oil prices are determined by global supply and demand, not by the volume of domestic production in any given country.

During the nineteenth and early twentieth centuries, the worldwide price of crude oil was largely stable. This changed in the 1970s, when the worldwide price of oil rose dramatically.

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go to the st. louis federal reserve fred database, and find data on assets less liabilities, i.e. bank capital (ralacbm027sbog), and total assets of commercial banks(tlaacbm027sbog). starting in january 1973 until december 2021, using the fred graphing tool, calculate the bank leverage ratio and create a line graph of the leverage ratio over this sample (include the graph you created with your submission). given the path of bank leverage over time, what can you conclude about moral hazard in the banking system over the time period considered?

Answers

The moral hazard in the banking system over the period of time are the bank leverage will increase and liabilities will also increase.

What is the history of banking?

The first prototype banks in the history of banking were the merchants of the world, who lent grain to farmers and traders who transported products between towns. In Assyria, India, and Sumeria, this occurred circa 2000 BCE. Later, during the time of the Roman Empire and in ancient Greece, lenders headquartered in temples provided loans while also taking deposits and handling currency exchange. Evidence of money lending can also be seen in the archaeology of ancient China and India. The wealthy cities of Florence, Venice, and Genoa are among those where many academics locate the historical origins of the contemporary banking system. The Bardi and Peruzzi Families controlled the banking industry in Florence in the fourteenth century, opening branches across much of Europe.

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nton is a project manager at a large, multinational insurance company in the u.s. his team members are located in ireland, bangladesh, and australia, and they work remotely via the use of electronic communication. this is an example of a(n) blank team.

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Anton works as a project manager for a large global insurance firm in the United States. His team members are based in Ireland, Bangladesh, and Australia. This is an example of a virtual team.

A project manager is a project management specialist. Project managers are in charge of the planning, procurement, and execution of a project in any undertaking that has a specified scope, defined start, and defined completion; regardless of industry. As project representative, project managers are the initial point of contact for any difficulties or disagreements that arise among the leaders of several departments within a business before the matter escalates to higher authorities.

A project manager is responsible for project management. This individual rarely participates directly in the actions that produce the outcome, but rather attempts to maintain the progress, mutual interaction, and tasks of multiple parties in such a way that decreases the chance of overall failure and optimizes advantages.

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the multi resource company manufactures two lines of washing machines, regular and deluxe. the contribution margin per unit of a regular model is $110 and for deluxe model is $175. the company has two departments, assembly and testing. the regular model requires 3 hours to assemble, while a deluxe model requires 4 hours. the total time available in assembly is 12,360 hours. in the testing department, it requires 2.5 hours to test a regular model and 1.5 hours to test a deluxe model. a total of 6,030 hours of testing time is available. based on this information, the optimum production plan for multi resource is:

Answers

Based on this data, 3,090 Deluxe models provide the ideal production strategy for a multi-resource company.

What is the ideal production strategy?

The production strategy that generates the maximum amount of contribution margin per unit of the scarce resource is the most effective strategy.

Information and calculations:

Regular Deluxe Total

The contribution margin per unit is $110 and $175.

Assembly hours 3 4 12,360

Testing hours 2.5 1.5 6,030

Few resources = Assembly hours

Contribution rate per restricted unit

Resource = $36.67($110/3) $43.75 ($175/4)

The best manufacturing strategy is to produce 3,090 units of the Deluxe Model (12,360/4), which will increase the contribution margin per unit of the scarce resource.

A business's contribution margin – also called the gross margin – is the cash left over from income after paying all variable costs associated with generating a product. Subtracting constant costs, inclusive of rent, equipment rentals, and salaries from your contribution margin yield your internet earnings or earnings.

Gross margin is the amount of profit left after subtracting the price of goods bought from revenue, even as contribution margin is the number of earnings left after subtracting variable charges from sales.

it is an accounting time period that facilitates enterprise proprietors and bosses tuning product profitability. The contribution margin is critical to understand because it shows how much of a product's sales are available to cowl constant charges and makes a contribution to the company's earnings.

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the fasb has decided that the accounting principles for deferred tax assets resulting from deductible temporary differences versus operating loss carryforwards should be

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For the purpose of recognizing future tax impacts brought on by permanent differences and carryforwards, deferred tax liabilities and assets are set up.

Taxes that are due but won’t need to be paid until later are recorded as a deferred tax liability on a company’s balance sheet. Needed to a gap in time between when the tax was accrued and when it is due to be paid, the responsibility is delayed. Permanent disparities are those that start in one period and do not end later between taxable income and accounting income.

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How is the development of public goods instrumental in have a
mixed economic structure?

What are some public goods offered within the American
free enterprise system?

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The development of public goods is instrumental in having a mixed economic structure as a mixed economy features many of the desirable qualities of both capitalism and socialism.

Governments in the mixed economies tend to provide public goods as it simultaneously allows the government in order to intervene in some economic activities and as well as the industries. Thus, through providing public goods and also collecting taxes, the government creates more social welfare.

The U.S. economy is known as a free enterprise system. Which means that the individuals here and not the government own most of the country's resources.

Hence, in free enterprise system supply and demand determine how the resources are used.

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a third party can perform contractual obligations on behalf of the promisor (who of course remains responsible for proper performance) except in circumstances where c) a business has taken on more work than it can complete. a) personal performance is required. e) the original promisor dies. b) the contract is silent on the issue of performance. d) the original promisor goes bankrupt.

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A third party can perform contractual obligations on behalf of the promisor,  when the original promisor dies.

Contracts? Why do you say that?

An agreement between parties that produces mutually binding legal obligations is known as a contract. Mutual assent, conveyed through a contract-compliant offer, adequate consideration, capacity, and legality are the key elements required for the agreement to be a valid offer and acceptance.

What are the terms of business contracts?

A contract is an agreement between two parties that places a duty of performance on one of them. These are required for a contract to be enforceable in court.

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a worksheet is a a. part of the general ledger b. permanent accounting record c. required part of the accounting cycle d. device used in preparing financial statements

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D) A worksheet is a tool utilized in making ready economic statements.

What's a worksheet?

A worksheet, withinside the word's unique meaning, is a sheet of paper on which one plays paintings. They are available in many forms, maximum typically related to kids' college painting assignments, tax forms, and accounting or different commercial enterprise environments. Software is an increasing number of taking up the paper-primarily based totally worksheet.

It may be a broadcast web page that a baby completes with a writing instrument. No different substances are needed. It is "a sheet of paper on which paintings schedules, operating time, unique instructions, etc. are recorded.

A piece or scrap of paper on which problems, ideas, or the like, are set down withinside the tentative form." In accounting, a worksheet is, or was, a sheet of dominated paper with rows and columns on which an accountant should file data or carry out calculations. These are frequently known as columnar pads and are normally green-tinted.

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if mike thinks quality is more important than quantity and nick disagrees, what is likely the basis for their conflict? responses arbitration arbitration solution solution mediation mediation disagreement in values

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If mike thinks quality is more important than quantity and nick disagrees, then disagreement in values is likely the basis for their conflict.

What is Value Conflict?

Differences in deeply held beliefs and views of the world lead to a difference of opinion known as a value conflict. Because the disagreements are founded on beliefs rather than facts, the conflict cannot be easily resolved with facts.

People can be persuaded to change their ideas when given rational and compelling arguments, yet reasoning and persuasion are ineffective for altering core values. Value conflicts put the conventional approaches to dispute resolution to the challenge, from disparities between individuals to differences between nations. Appealing for consensus on a value that is more highly valued and deeply ingrained than the one in dispute is an effective way to reach a resolution.

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a project purchasing agent is trying to order the concrete needed to continue the project. however, the supplier will not be able to deliver it until next week. this is an example of what kind of resource constraint? multiple choice

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An employee of the project is attempting to order the concrete required to complete the project. The supplier will be able to deliver it, but not until the following week. this is an example of Materials kind of resource constraint.

The typical examples of resource limitations include food, oil, and water. But we should also take into account metals, phosphorus, gas, and land. All are under strain, albeit to varying degrees.

Time-constrained initiatives adhere to a set completion date, whereas resource-constrained projects use fixed resources. A cost limitation means you have a limited project budget, but a time constraint means you have to finish your project by a certain deadline. Constraint management is essential for project success since the majority of project restrictions have mutually reinforcing effects.

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a customer requests a $5,000 partial surrender of his universal life insurance policy. the agency producer notices that the customer has made a $5,000 premium deposit just a week before. the producer should:

Answers

In this life insurance policy, the producer should discuss the situation with his/her manager.

Life insurance policy

Life insurance policy refers the contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

Given,

The customer requests a $5,000 partial surrender of his universal life insurance policy. the agency producer notices that the customer has made a $5,000 premium deposit just a week before.

Here we need to find what the producer should do.

Here we know the the customer requests the partial surrender of $5,000 from his universal life insurance policy.

And the agent identified that the customer has made a $5,000 premium deposit just a week before.

So, the agent discuss this with the producer.

Now, the producer further discuss this with the his/her manager before, make the decision.

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the maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called: group of answer choices

Answers

Potential GDP is the maximum amount that an economy can create given its current levels of labor, physical capital, technology, and institutions.

What does GDP mean?

The Gross Domestic Product (GDP) is a measure of the financial value of finished goods and services, which are said to be purchased by the ultimate user.

How much is potential GDP?

The maximum rate or quantity that an economy is known to be able to make or produce under full employment of its previous levels of labor, physical capital, and other resources is known as potential GDP, also known as full-employment GDP.

Consequently, the maximum amount that an economy may generate under its current

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At the end of the year 2 accounting period, deyoung company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,400. Defazio uses the perpetual inventory method. Assuming the amount is material, how will the entry necessary to reduce the inventory to the lower of cost or market affect the elements of the company’s financial statements?.

Answers

Using the method of perpetual inventory Assuming the amount is significant, the entry required to reduce inventory to the lower cost or market affects the financial statements of the company by decreasing total assets, gross margin, and net income.

A perpetual inventory system is a program that estimates your inventory on a continuous basis based on your electronic records rather than a physical inventory. This system starts with a physical count as a baseline and updates based on purchases made in and shipments made out.

A good's value can change over time. This is important because if the price at which the inventory can be sold falls below the item's net realizable value, resulting in a loss for the company, the lower of cost or market method can be used to record the loss.

Net sales are subtracted from direct expenses or cost of goods sold (COGS) to calculate the gross profit margin (gross revenues minus returns, allowances and discounts). The gross margin ratio is calculated by dividing that figure by net revenues and multiplying it by 100%.

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the manager of a publishing company plans to give a $20,000 bonus to the top 15 percent, $10,000 to the next 30 percent, and $5,000 to the next 10 percent of sales representatives. if the publishing company has a total of 200 sales representatives, what is the expected bonus that the company will pay?

Answers

We can often find expected values for probabilistic events, like the expected value of making a number of uncertain investments.

However, we can also find expected values for less uncertain expectations, like the amount of money a company plans to pay sales representatives in bonuses.

30 people comprise the top 15% of 200 sales representatives. A subtotal of 30 times $20,000 equals $600,000, with a bonus of $20,000 for each of these.

How does Expected Value work?

A random variable's long-run average value is the expected value, which can also be referred to as EV, expectation, average, or mean value. The probability-weighted average of all possible values is also shown. The concept of expected value is frequently used in finance.

How is the expected value determined?

Simply multiply each value of the discrete random variable X by its probability and add the products to get the expected value, E(X), or mean. The formula is as follows: E (X) = = x P (x)

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symington corporation uses the periodic inventory system. at december 31, 2024, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. the following items were not included in the physical count: goods held on consignment at murphy corporation $ 23,000 merchandise shipped to a customer on 12/30/2024 free on board destination (merchandise arrived at customer's location on 1/3/2025) 12,000 merchandise shipped to a customer on 12/29/2024 free on board shipping point (merchandise arrived at customer's location on 1/2/2025) 6,000 merchandise purchased from a supplier, shipped free on board destination on 12/29/2024, in transit at year-end 24,000 symington's 2024 ending inventory should be:

Answers

In transit at year-end, 24,000 Symington's 2024 ending inventory should be $355,000.

= Ending inventory balance at December 31, 20X1 + Goods held on consignment at Murphy corporation + Merchandise shipped to customer on 12/30 and arrived at customer' location on 1/3/2017

= $320,000 + $23,000 + $12,000

= $355,000.

inventory or stock refers to the goods and accouterments a business holds for the ultimate resale, product or utilization. force operation is a discipline primarily about specifying the shape and placement of graded goods. Inventory is the raw accouterments used to produce goods as well as the goods that are available for trade. It's classified as a current asset on a company's balance distance. The three types of force include raw accouterments, work-in-progress, and finished goods.

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how can a manager use the communication skill of listening like a professional? group of answer choices to focus, maintain eye contact, and ask clarifying questions if thoughts wander, nod the head to appear to be paying attention formulate a response while the speaker is talking so a lull doesn't occur to remind senders of their responsibility to send an understandable message

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Manager use the communication skill of listening like a professional to focus, maintain eye contact, and ask clarifying questions if thoughts wander.

Good communication skills are required to allow others and oneself to absorb information more effectively and quickly. In contrast, poor communication skills lead to frequent misunderstandings and professional. Great communicators choose their words carefully, understand their audience, and connect with them at the right time and place. You can master the abilities and learn how to be a successful communicator by using these ideas and practising frequently. Being able to communicate effectively is essential for being an effective instructor.

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on a cvp chart, the slope of the line which starts at the level of fixed costs and slopes upwards is the:

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On a CVP chart, the slope of line which starts at the level of fixed costs and slopes upwards is variable cost per unit 3.

What is CVP analysis?

When deciding on short-term business strategies, leaders use the financial planning tool known as Cost Volume Profit (CVP) Analysis, also referred to as break-even analysis. This demonstrates to business decision-makers the impact of variations in selling price, costs, and volume on profits. Leaders in financial planning and analysis use break-even analysis as their most frequent method of applying CVP. The most straightforward way to describe break-even analysis is to say that it involves figuring out how many sales are required to reach the breakeven point in terms of cost of operations. A CVP analysis is immediately necessary given the risks of not performing one. In his book Pizza Tiger, Tom Managhan, the creator of Domino's Pizza, provides a real-world illustration of a CVP issue he encountered in the beginning.

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What causes the total amount of interest paid on a mortgage to be so much higher than on other types of debts?.

Answers

Credit Score causes the total amount of interest paid on a mortgage to be much higher than other types of debts. Your credit score is one issue that may affect your charge per unit.

In general, shoppers with higher credit scores receive lower interest rates than shoppers with lower credit scores. Lenders use your credit scores to predict how reliable you will be in paying your loan.

Mortgage rates area units tied to the fundamental rules of provide and demand—factors like inflation and economic process. A mortgage is that the transfer of an associate interest in specific unmovable property for the aim of securing the payment of a cash advance. Investors, even those with prime credit ratings, were far more seemingly to default than non-investors once costs fell.

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the first apple iphone was introduced in 2007 at an initial price of $600. people waited in line overnight so they could be one of the first to own this unique smartphone. which pricing strategy did apple use to help recoup its costs for developing the smartphone?

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The first apple iPhone was introduced in 2007 at an initial price of $600. skimming pricing strategy did apple use to help recoup its costs for developing the smartphone.

A strategy explains how the means will be used to accomplish the ends (goals). As an organization competes or adapts to its environment, strategy may be intentional or develop as a pattern of behavior. Strategic planning and strategic thinking are among the tasks involved. A smartphone is a portable computer that combines computing power and a mobile phone into one device. Early smartphones were primarily targeted at the business sector and attempted to combine the functionality of standalone personal digital assistants (PDA) with cellular telephony support. However, these devices were constrained by their bulky design, short battery life, slow analog cellular networks, and the infancy of wireless data services.

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In paragraph form (5-6 sentences), what are some of the pros and cons about entrepreneurship? Give your views on it in-depth.

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The advantages and drawbacks of something are its pros and negatives, which you carefully weigh in order to come to a wise decision. One of the biggest advantages of being an entrepreneur is that you get to learn a lot and wear many different hats.

These advantages lessons cover a variety of topics, like marketing, money management, dealing with people, managing risks, getting the job done as efficiently as possible, etc. in addition to your own industry. Entrepreneurs have a significant risk of failure, and the expenses are occasionally paid for by the public. If established businesses close, entrepreneurial initiatives could result in layoffs in the medium term. Self-employment is not always a reliable predictor of entrepreneurial activity.

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the price level is aa. nominal variable.b. dichotomous variablec. relative variable.d. real variable

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The price level is a nominal variable. The three different categories of categorical variables are nominal, dichotomous, and ordinal.

A nominal variable subtype known as a dichotomous variable can only have two levels or categories. On the other hand, an ordinal variable may have two or more categories, but these may also be ranked or ordered. Other forms of variables, like interval and ratio variables, are also employed in addition to category variables. A categorical variable with two or more categories is called a nominal variable. There isn't a hierarchy among these groups, though. Nominal variables are qualitative in nature and lack any numerical properties. An ordinal variable is one that has an appropriate numerical ordering. Although nominal variables can be coded, they cannot be subjected to mathematical processes. In other words, it is impossible to quantify nominal variables. We will learn more about a nominal variable, a nominal scale, and other related examples in this post.

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which of the following are advantages of secondary research in preparing a business report? (choose every correct answer.)It is usually less time-consuming.It usually costs less than primary research.It provides access to more sources of information.

Answers

The following are advantages of secondary research in preparing a business report:

It is usually less time-consuming.It usually costs less than primary researchIt provides access to more sources of information.

What is a secondary research?

Secondary research relates the short piece, gathering and/or analysis or review of subsisting study. Secondary research is not the same as the primary research in that primary research demands the finding or gathering of raw data, whereas secondary research uses primary research sources as a background or data pool of data for analysis.

Therefore, the correct answer is as given above

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which account will be credited when a promissory note is used to replace an accounts receivable balance? multiple choice notes receivable cash short or over cash

Answers

Notes receivable account will be credited when a promissory note is used to replace an accounts receivable balance.

What is accounts receivable?

The term "accounts receivable," often known as "AR" or "A/R," refers to a company's legally enforceable claims for payment for items delivered or services provided that consumers have requested but haven't paid for.

The proceeds or money that the business will receive from its clients who have financed their purchases of its goods and services are known as accounts receivable (AR). The credit term is often brief, ranging from a few days to several months or even a full year in rare situations.

The amount of money that clients owe a company for goods or services already rendered is measured by accounts receivable. Investors can get a better understanding of a company's overall financial stability and liquidity by looking at its accounts receivable.

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the excess of government spending over tax collections is: multiple choice national income. national saving. national wealth. the government budget deficit.

Answers

The excess of government spending over tax collections is Option (d) the government budget deficit.

Current expenses surpass the amount of income obtained through routine operations when a budget deficit is detected. A government may boost revenue-generating activities or reduce specific expenditures in order to balance the country's budget deficit, also known as a fiscal deficit.

A budget deficit may result in increased borrowing, greater interest costs, and insufficient reinvestment, all of which reduce revenue for the next year. Overspending by the government and insufficient revenue are the two main contributors to budget deficits.

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what are project deliverables? multiple choice a temporary endeavor undertaken to create a unique product or service the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project key dates when a certain group of activities must be performed

Answers

Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project brief or part of a project  are project deliverables.

A project brief is an clean-to-digest record that outlines the crucial additives of a undertaking for your crew and stakeholders.

Whilst a venture plan details how a mission will get executed, a undertaking brief defines the who, what, while, in which, and why.

The project brief is a way to deliver this records in a summary to be able to outline the targets of the undertaking, its scope, the main deliverables, milestones and the timeline. Taking the time to create an intensive challenge quick enables deliver anyone collectively to higher satisfy the mandate of the venture.

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liz zackery just launched a firm in the sporting goods industry. on the day the company was launched, liz issued a press release, indicating that the vice president of new balance, a highly respected athletic shoe and sports apparel company, had agreed to serve on her board of directors. liz knows that such a high quality appointment will send an important message to her potential clientele. this phenomenon is referred to as .

Answers

Signaling is the phenomenon where Liz knows that such a high quality appointment will send an important message to her potential clientele.

What is Signaling?

In contract theory, signaling refers to the notion that one party (the agent) knowingly and credibly communicates information about itself to another party. Since it was so intuitive, signaling theory has been applied to many other fields, including human resource management, business, and financial markets, even though it was initially developed by Michael Spence based on knowledge gaps between organizations and potential employees. According to Spence's job-market signaling model, obtaining educational credentials allows (potential) employees to communicate with employers about their level of skill. The fact that the employer thinks the credential is positively correlated with having greater ability and difficult for low ability employees to obtain gives the credential its informational value.

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alpha corporation began using the mark zing for chocolate candy bars in new york and new jersey in 2010. in 2015, without any knowledge of alpha's prior use, beta corporation began using the mark zing for chocolate candies in hawaii. in 2020, alpha corporation obtained federal registration for zing and has filed suit to enjoin beta from using the mark in hawaii. what is the most likely result

Answers

The result of the corporation is most likely trademark infringement.

When a trademark or service mark is used without authorization on or in connection with products and/or services in a way that can cause confusion, deception, or mistake about the source of the goods and/or services, this is referred to as trademark infringement.

A trademark owner who believes their mark is being used improperly may, depending on the circumstances, bring a civil action (i.e., a lawsuit) for trademark infringement in either a state or a federal court. However, trademark owners typically opt to bring an infringement claim before a federal court. Even if the plaintiff files in state court, the defendant may be able to have the case "removed" to federal court.

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The toxicity that was reported to exist at the management level within uber made rachel whetstone’s job of communicating to others more difficult because it acted as.

Answers

The toxicity that was reported to exist at the management level within Uber hampered Rachel Whitstone's ability to communicate with others because it acted as noise.

Even communications written with a careful and detailed process approach can go wrong in terms of your audience understanding your message in the way you intended. Interference in communication is commonly referred to as "noise," and it can be physical noise, such as a loud hallway conversation, or it can be caused by a variety of other factors.

The following types of noise can derail the act of communication by diverting your audience's attention away from your message:

Physical noisePhysiological noiseTechnical noiseOrganizational noiseCultural noisePsychological noiseSemantic noise (language, words)

Too much noise pollution in a call center, or in this case, at Uber, causes disruptions and reduces Rachel's employee performance.

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happy maids cleans commercial buildings. in march, happy maids started and completed two jobs, job 1000 and job 1001. the job cost sheet for job 1000 showed $1,200 of direct materials and 30 direct labor hours. the job cost sheet for job 1001 showed $2,000 of direct materials and 50 direct labor hours. overhead is applied at $7 per direct labor hour. the employees who worked on these two jobs were paid $15 per hour. what is the total cost for each of these two jobs for march?

Answers

The total costs for Job 1000 is $1860 and Job 1001 is $3100 for March.

For Job 1000:

Total cost of direct material = $1200

Cost of direct labor = 30×15 = $450

Total cost of direct labor = $450

Overhead cost = 30×7 = $210

Overhead cost = $210

Total cost=  $1200 + $450 + $210 = $1860

The total costs for Job 1000 is $1860.

For Job 1001:

Total cost of direct material = $2000

Cost of direct labor = 50×15 = $750

Total cost of direct labor = $750

Overhead cost = 50×7 = $350

Total cost= $2000 + $750 + $350 = $3100

The total costs for Job 1001 is $3100.

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12.
Which statement BEST describes the relationship between supply and demand?
A.
A product with high demand and low supply will experience an increase in price.
B.
A product with low demand and high supply will experience no change in price.
C.
A product with low demand and low supply will experience an increase in price.
D.
A product with high demand and high supply will experience a decrease in price.

Answers

The answer is
A. A product with high demand and low supply will experience an increase in price

ou take out student loans to help pay for your degree at a 5% annual interest rate. assume the bank expected inflation to average 3% per year. a. what real interest rate did the bank expect to earn from your loan?

Answers

The real interest rate did the bank expect to earn from your loan is 0.02 = 0.2 %.

Providing the following details:

Interest rate nominal = 5%

3% inflation rate

The following formula must be used to determine the real interest rate:

Nominal interest rate minus inflation equals real interest rate.

0.05 to 0.03 percent real interest rate

Real interest rate = 0.02 and equals 2%

The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount. Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).

A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD). The interest received on these deposit accounts is measured in annual percentage yields (APY).

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