Nominal interest rate of almost zero percent

Assignment Help Accounting Basics
Reference no: EM131023406

During the 1990s, Japan experienced periods of deflation and low nominal interest rates that approached zero percent. Why would lenders of funds agree to a nominal interest rate of almost zero percent? (Hint: Were real interest rates in Japan also low during this period?)

Reference no: EM131023406

Questions Cloud

A c++ program to validate user inpu : In this exercise, you use what you have learned about validating user input to answer Questions 1 - 3.1. You plan to use the following statement in a C++ program to validate user input:while(inputString == "")What would your user enter to cause this ..
Problem regarding the certificates of deposit : Frank has no pension but has saved a considerable amount, which he has invested in certificates of deposit (CDs) at his bank. Currently, Frank's CDs pay him interest of $2,300 per month.
Write a paper about introduction listing my goals : Write a paper about Introduction listing ‘'my Goals''. A clear and precise log of eating for three weeks. My goals achieved or not why not? Your four page paper.
Write visual logic code to convert fahrenheit to celsius : How do I write visual logic code to convert Fahrenheit to celsius?
Nominal interest rate of almost zero percent : During the 1990s, Japan experienced periods of deflation and low nominal interest rates that approached zero percent. Why would lenders of funds agree to a nominal interest rate of almost zero percent? (Hint: Were real interest rates in Japan also ..
What are the major component of the motherboard : (1)what are the major component of the motherboard? provide a brief description of each component. (2) upgrading only the motherboard will gives some performance improvement to a computer system. why would the improvement be limited?
Determining the real rate of interest : Suppose you lend $1,000 for one year at an interest rate of 5 percent. At the end of the year, a hamburger costs $2.08. What is the real rate of interest you earned on your loan?
Find the general solution of the system : And for each such simple harmonic motion how do I determine the angular frequency and the vector giving the direction of motion?
Find the magnitude of change in flux through the coil in wb : In a coil of resistance 1 the induced current developed by changing magnetic flux through it is shown in figure as a function of time. Find the magnitude of change in flux through the coil in wb?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd