Ask Question
BusinessBusiness
4 September, 11:41

In which of the following situations would you prefer to be the lender? A. The interest rate is 4 percent and the expected inflation rate is 1 percent. B. The interest rate is 25 percent and the expected inflation rate is 50 percent. C. The interest rate is 13 percent and the expected inflation rate is 15 percent. D. The interest rate is 9 percent and the expected inflation rate is 7 percent.

+1
Answers (1)
  1. 4 September, 11:56
    0
    A. The interest rate is 4 percent and the expected inflation rate is 1 percent.

    Explanation:

    A. The interest rate is 4 percent and the expected inflation rate is 1 percent

    Inflation refers to the rate at which prices for goods and services rise. In the United States, the interest rate, or the amount charged by lender to a borrower, is based on the federal funds rate that is determined by the Federal Reserve (sometimes called "the Fed").

    B. The interest rate is 25 percent and the expected inflation rate is 50 percent. the lender loses money

    C. The interest rate is 13 percent and the expected inflation rate is 15 percent the lender loses money
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In which of the following situations would you prefer to be the lender? A. The interest rate is 4 percent and the expected inflation rate ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The government regulates financial markets for two main reasons: A. to ensure that financial intermediaries do not earn more than the normal rate of return and to improve control of monetary policy. B.
Answers (1)
When a firm charges high prices in the short term
Answers (1)
Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 16,100 units in its beginning work in process inventory that were 20% complete with respect to
Answers (1)
A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn't know how to find a dealer and doesn't have Internet access. Which of the following reasons explain why marketing fails to occur here? A.
Answers (1)
Five tips you would give your friend to prepare for the job interview.
Answers (1)
New Questions in Business
Once risks have been identified, how can they be managed?
Answers (1)
The arnold fertilizer company's stock is selling for $55 in the market and its earnings per share is $5. the company is projected to grow at a rate of 22% over the next year. what is this company's price/earnings to growth (peg ratio?
Answers (1)
Strong company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000.
Answers (1)
The last 50 years of declining productivity of the commercial fish populations off the northeast coast of north america reveal the impact of
Answers (1)
Which of these is NOT one of the items that can provide useful assistance to a project team to define the activities of a project? a. the major milestones from the Project Charter b. schedules from similar, previous projects c. issue logs d.
Answers (1)
Home » Business » In which of the following situations would you prefer to be the lender? A. The interest rate is 4 percent and the expected inflation rate is 1 percent. B. The interest rate is 25 percent and the expected inflation rate is 50 percent. C.
Sign Up Forgot Password?