Interest rate on a federally insured deposit declines

Assignment Help Business Economics

Reference no: EM131173816

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 loss worth $100.

b. capital gain worth $99.

c. capital gain worth $100.

d. capital loss worth $99.

Reference no: EM131173816

Questions Cloud

Assume the short-run aggregate supply curve : Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π and the dynamic aggregate demand curve can be written as: Y = 5,000 – 1,000π. Find the numerical value for the short-run inflation rate? Find the numeri..

The us stock market is efficient : "The US stock market is efficient." In preparing to contribute to this discussion, you should first think about what is it that the market is supposed to do efficiently. Having identified what it means to say that the market is efficient, consider th..

Explain the benefits of a market economy : Explain the benefits of a market economy. What is to be produced? How are the goods to be produced? For whom are the goods produced?

Explains how to set up a festival booth : Write an instructional guide of 1–2 pages that explains how to set up a festival booth. Be sure to offer a clear heading that summarizes the task, use numbered lists if and when necessary, and do not mix instructions with conceptual information. Your..

Interest rate on a federally insured deposit declines : 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 (approximate..

Plot the consumption function : Plot the consumption function C = 150 + 0.7Y. Assuming no government sector, if planned investment spending is 250 billion dollars, what is the equilibrium level of aggregate output? Explain in full sentences, and show this equilibrium level of outpu..

About productivity and study the graphic figures : We can read about productivity and study the graphic figures that are in textbook and be able to understand the relationships of variable cost, fixed costs and average total cost and find the most optimal quantity of production. If a firm buys roboti..

How much money will tom and tricia have in fourty five years : How much money will Tom and Tricia have in 45 years if they do nothing for the next 10 years, then put $2400 per year away for the remaining 35 years?

Describe the nature of the four ethical behaviors : Ethical Autobiography: First, explain how you think through and determine what is "right" and "wrong" (personally and professionally) in your own daily life. Second, identify four examples of ethical behaviors and explain how your cultural heritag..

User Account

All Pages