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 77 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

Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Defensive mutualism involves species that receive food or shelter in return for providing protection Defensive mutualism involves species that receive food or shelter in return for providing protection
Factors that contribute to the growth of family members. Factors that contribute to the growth of family members.
dinosaurs were real dinosaurs were real
Why are members of the Hells Angels part of a counterculture and not a subculture? Why are members of the Hells Angels part of a counterculture and not a subculture?
Changes in Time Spent with Family Members Changes in Time Spent with Family Members
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
Video: Lower Limb Arteries Animation

For a complete list of videos, visit our video library