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 79 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?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

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?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Independent assortment produces 50 percent recombinants Independent assortment produces 50 percent recombinants
How to calculate simple interest (Part 1) How to calculate simple interest (Part 1)
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Video: Adolescent Diabetes

For a complete list of videos, visit our video library