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

Author Question: Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to ... (Read 81 times)

viki

  • Hero Member
  • *****
  • Posts: 525
on: Jun 30, 2018
Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth 2,500 plans to sell it after this drop in interest rate, he would realize (approximately) a:
 a. capital gain worth 99.
  b. capital loss worth 100.
  c. capital gain worth 100.
  d. capital loss worth 99.

Question 2

If demand is perfectly elastic, then
 A) demand and price are inversely related.
  B) quantity demanded and price are inversely related.
  C) the demand curve is a vertical line.
  D) the demand curve is a horizontal line.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

peilian

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


viki

  • Hero Member
  • *****
  • Posts: 525
Reply #2 on: Jun 30, 2018
Thank you


peilian

  • Sr. Member
  • ****
  • Posts: 316
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
How to convert units of any rate to another (Part 3) How to convert units of any rate to another (Part 3)
Outgroup role in relative rate test Outgroup role in relative rate test
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
A promissory note for $600.OO dated January 15, 2017. requires an interest payment of $120 00 ... A promissory note for $600.OO dated January 15, 2017. requires an interest payment of $120 00 ...
Video: Major Elements in Biological Molecules: Carbohydrates

For a complete list of videos, visit our video library