This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose a credit union strives for a 3 real return on its loans to members, and expects a 2 ... (Read 45 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
on: Jun 29, 2018
Suppose a credit union strives for a 3 real return on its loans to members, and expects a 2 inflation rate. What nominal rate of interest should it charge its members?
 
  A) 0
  B) 1
  C) 3
  D) 6

Question 2

Suppose a bank wants a 5 real return on its loans, and contemplates a 1 annual inflation rate. The bank should therefore charge a nominal interest rate of
 
  A) 1.
  B) 4.
  C) 5.
  D) 6.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kristenb95

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


Alainaaa8

  • Member
  • Posts: 576
Reply 2 on: Jun 29, 2018
:D TYSM

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Each subculture provides its members with values and distinctive ways of viewing the world. What ... Each subculture provides its members with values and distinctive ways of viewing the world. What ...
With their specialized language and activities, surfers are highly recognized as members of a ... With their specialized language and activities, surfers are highly recognized as members of a ...
Return to the icehouse Return to the icehouse
Please advise 'How To' on Real Estate Math problem (Answer Provided)? Please advise 'How To' on Real Estate Math problem (Answer Provided)?
Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ... Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ...
Video: Hemodynamics Animation

For a complete list of videos, visit our video library