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 32 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
Excellent

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

dinosaurs were real dinosaurs were real
Members of the Lemba ethnic group from southern Africa. Members of the Lemba ethnic group from southern Africa.
A mound of buffalo skulls. In 1870 an estimated 30 million buffalo roamed the plains; by 1900 there A mound of buffalo skulls. In 1870 an estimated 30 million buffalo roamed the plains; by 1900 there
The frequency of bipolar illness in members of monozygotic twin pairs and in first-degree relatives The frequency of bipolar illness in members of monozygotic twin pairs and in first-degree relatives
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Real skeleton of a lion Real skeleton of a lion
Video: Digestive chemicals - types & enzymes

For a complete list of videos, visit our video library