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 66 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?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Temperature Changes on Heart Rate Temperature Changes on Heart Rate
A compression gauge designed for the higher compression rate of a diesel engine should be used when ... A compression gauge designed for the higher compression rate of a diesel engine should be used when ...
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
How to calculate simple interest (Part 2) How to calculate simple interest (Part 2)
A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
Video: Studying the Left and Right Brain Independently

For a complete list of videos, visit our video library