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
A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to serve more clients. Should he expand? a. No, because he may not be able to sell more services. b.
Answers (1)
While employed, Sally purchased shares of a mutual fund with a certain investment objective. Sally has decided to retire this year, and she wants to change the investment objective of her mutual fund investments.
Answers (1)
What is a mortgage?
Answers (1)
A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 years at par. On the customer's confirmation, the dollar price quoted must be based on:
Answers (1)
One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers rev: 06_13_2018 Multiple Choice make the actual budget a better reflection of the condition of the economy than the standardized budget.
Answers (2)
New Questions in Business
Pharoah Corporation loaned $660000 to another corporation on December 1, 2020 and received a 3-month, 9% interest-bearing note with a face value of $660000. What adjusting entry should Pharoah make on December 31, 2020
Answers (1)
PowerLife Inc. is a food company that has several product lines, including dairy products and powdered fruit-flavored drink mixes. The company recently introduced ready-to-drink packaged fruit juices.
Answers (2)
Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead rate of $18 per direct labor-hour.
Answers (1)
What are the three characteristics of people who spend the most on floral products
Answers (1)
Jerry's job includes many credit activities. He is responsible for collecting and processing loan payments, answering questions from potential applicants, taking loan applications, determining credit evaluation criteria, and developing marketing
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?