Relationship between the price of asset and interest rate

Assignment Help Business Economics
Reference no: EM131108006

Choose the correct statement.

A) There is no relationship between the price of an asset and the interest rate.

B) When the price of an asset? falls, the interest rate? falls, everything else remaining the same.

C) When the price of an asset? rises, the interest rate? falls, everything else remaining the same.

D) When the price of an asset? rises, the interest rate? rises, everything else remaining the same.

Reference no: EM131108006

Questions Cloud

Dates when the floating-rate payments are made : A bank composes a 2-year, zero-cost collar for a $20 million portfolio offloating-rate loans by buying the floor and selling the cap. The floor strike is2.5%, the cap strike is 4.7%, and the reference rate is LIBOR.
Improving the political social and economic fortunes : Evaluate this statement made by a hypothetical historian: "The 20th century represented a consistent trend toward improving the political, social, and economic fortunes for all people of the world
A financial institution can be solvent but illiquid : A financial? institution's net worth is the market value of what it has lent minus the market value of what it has borrowed. If a financial? institution's net worth is? positive, the institution must be solvent and liquid. A financial institution can..
What is the internal rate of return (irr) on an investment : What is the internal rate of return (IRR) on an investment? How is it determined?
Relationship between the price of asset and interest rate : There is no relationship between the price of an asset and the interest rate. When the price of an asset? falls, the interest rate? falls, everything else remaining the same. When the price of an asset? rises, the interest rate? falls, everything els..
Alternate prize or roll the dice : What is the expected utility from this prize? Connie is offered an alternate prize of $169 (no dice roll is required). Will she accept the alternate prize or roll the dice? What is the minimum payment that Connie will accept to forego the roll of the..
Why do externalities arise : Why do externalities arise?
Explain the similarities and differences between npv, pi : Explain the similarities and differences between NPV, PI, and EVA.
Consider monopolist in market with linear inverse demand : Consider a monopolist in a market with linear inverse demand p(q) = 4 minus q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price. Please show..

Reviews

Write a Review

Business Economics Questions & Answers

  Variance of the number of stores visited with the promotion

The mean number of mall stores visited by a customer is 4.9 and the variance is 1.9. A new promotion increases the number of stores visited by 2. Calculate the variance of the number of stores visited with the promotion? Use the laws of expected valu..

  Decide to withdraw the entire amount remaining

You put $20,000 on deposit on your 30th birthday at 5% compounded annually. On your 40th birthday, the account begins earning 6%. Then on your 50th birthday, it begins earning 7%. You plan to withdraw equal annual amounts on your 61st, 62nd, . . . , ..

  To understand what causes productivity growth

Suppose that capital per hour of work grows by 3 percent and technology grows by 1 percent over a one year interval. What is the growth rate of real GDP per hour of work? Show the formula and all work. To understand what causes productivity growth, w..

  Q1 sam purchased a 5 year treasury note with a 1000 face

q1. sam purchased a 5 year treasury note with a 1000 face value and a 7.5 coupon rate. with the help of excel

  Operates a major hydropower dam

“Dams ‘R’ Us” operates a major hydropower dam on the Klamath River in Oregon. In the event of dam failure, there would be major damages to local communities. The company can reduce the probability of failure through proper maintenance of the facility..

  Briefly describ four factors you would consider

You have been asked to produce a forecast for your company's new product (bottled water). List and briefly describ four  factors you would consider before giving the forecast.

  Say you are the manager of a perfectly competitive firm

say you are the manager of a perfectly competitive firm selling a product. your business is making a loss because total

  Describes economies of scope

Which of the following best describes economies of scope?

  Produce to maximize your firms profits

You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. what price and quantity of computers shoul..

  What was the growth rate of nominal gdp

Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.

  Consider the market for electronics

Consider the market for electronics. Patents are granted to investors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy, without the existence of patents; it is argued that research a..

  A company is a monopoly in the market for bottled water

A company is a monopoly in the market for bottled water. It was two plants to produced bottled water.

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