Refinancing before increasing interest rates

Assignment Help Business Economics
Reference no: EM13832498

One reason for raising interest rates was the prospect of a refinancing issue: a $12 billion issue matures April 1, and the government is expected to seek some new money, in excess of its refinancing needs.

Q: Why doesn't the government get the central bank to wait untill after the refinancing before increasing interest rates, so as to minimize its interest costs?

PLEASE ANSWER WITH A STRAIGH FORWARD (NOT A COPIED WALL OF TEXT) ANSWER TO THE QUESTION

Reference no: EM13832498

Questions Cloud

Money into a still-choked financial system : The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S Federal Reserve initiative to pump more money into a still-choked financial system. Prior to this move was the NZ dollar trading at U.S.56c or U.S.54..
What is an overhsoot : Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.What is an overhsoot? Explain the exact form of this official intervention to counteract a specific overshoot. ..
Which of these mixtures are heterogenous : Which of these mixtures are heterogenous
Trade deficits and the widening curent account deficit : At the moment the market is completely ignoring things like record U.S. trade deficits and the widening curent account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. In what way is monetary easing in Germany releva..
Refinancing before increasing interest rates : One reason for raising interest rates was the prospect of a refinancing issue: a $12 billion issue matures April 1, and the government is expected to seek some new money, in excess of its refinancing needs. Why doesn't the government get the central ..
Significant forms of money individuals may hold : The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure.  Explain why M2 velocity should be more predictable ..
What kind of addiction treatment settings exist : What kind of addiction treatment settings exist? What populations do the different settings serve? How does prejudice affect the willingness of individuals within special populations to seek treatment
What is persons opportunity cost of making pizza : Pat and Chris brew beer and make pizza. Pat takes 4 hours to brew a gallon of beer and 2 hours to make pizza. Chris takes 6 hours to brew a gallon of beer and 4 hours to make a pizza, what is each persons opportunity cost of making pizza?
Monetary aggregate of extensive financial innovation : The impact on this monetary aggregate of extensive monetary aggregate of extensive financial innovation - the changes in the kinds of deposits and services offered by banks- led the central bank to drop M1 as an intermediate target. What impact would..

Reviews

Write a Review

Business Economics Questions & Answers

  With a focus on the concepts introduced in granovetter

With a focus on the concepts introduced in Granovetter (2005), write a brief (1-page) essay comparing his discussion of the Fur of Sudan and Arab merchants with the description in TechCrunch1 of the tech-funding needs in London and the arrival of Sil..

  Figure out the cheapest way to produce toys

A company is trying to figure out the cheapest way to produce 36 toys. The company†TM s technology is given by:

  Growth rate of the gdp

Illustrate what was the growth rate of the GDP deflator between 1999 and 2000.

  Question about social diversity

Determine what are some of the philosophies that influenced Latin America? In what way did they impact the cultures of Latin America?

  Two things-eating food and playing online multiplayer game

Dennis is only interested in two things, eating food and playing the online multiplayer game Globe of Gratuitous Violence (GoGV) – a close competitor to world of war craft. Dennis’s utility is given by the function € U(q f , qg ) = 0.25ln(qf ) + 0.75..

  Its marginal costs are below total average costs

its marginal costs are below total average costs. If it creates an additional watch where its average total costs rise -fall or stay the same.

  In building the aggregate expenditures model

Which one of the following statements about discretionary fiscal policy is correct? A. Discretionary fiscal policy refers to any change in government spending or taxes that destabilizes the economy. B. Discretionary fiscal policy refers to the change..

  How are regression results evaluated

Summarize the components that support the Cobb-Douglas function, as well as its shortcomings. How are regression results evaluated? Is any single way better than another? Explain your answer.

  Private firms that benefited from government protection

Multinational enterprises are sometimes compared to colonial enterprises that operated at the end of the 19th century. Colonial enterprises were often private firms that benefited from government protection and control of foreign countries. Is this a..

  The investors after-tax rate of return

An investor bought a racehorse for $1 million. The horse's average winnings were $700,000 per year, and expenses averaged $200,000 per year. The horse was retired after three years, at which time it was sold to a breeder for $175,000. Assume accelera..

  Elucidate how that influences the marginal benefits

Elucidate how that influences the marginal benefits and marginal costs associated with the decision to purchase a house.

  What is the maximum market price you will pay

Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..

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