Ask Question
BusinessBusiness
3 March, 17:02

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.

+5
Answers (1)
  1. 3 March, 20:39
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Gold Standard: French franc. Before World War I, $20.67 was needed to buy one ounce of gold. If, at the same time, one ounce of gold could be purchased in France for FF410.00, what was the exchange rate between French francs and U. S. dollars
Answers (1)
On June 15, a food wholesaler sold 100 cases of canned soup to Happy Foods for $30 per case with terms of 2/10, n/30.
Answers (1)
A developer wants to build a sprawling two-story office complex. The developer's and architect's vision is something low, modern, and new. They are planning the complex in an urban area of town, replacing ten blocks of old high-rise buildings.
Answers (1)
All coffee beans and trees grow similarly, regardless of the country of origin, climate, or soil true or false
Answers (1)
A company is contemplating investing in a new piece of manufacturing machinery. the amount to be invested is $210,000. the present value of the future cash flows is $225,000.
Answers (1)
New Questions in Business
An HR manager for PepsiCo, a company known for its commitment to diversity, is seeking to hire employees who are very comfortable with racial, cultural, and sexual diversity.
Answers (1)
All of the following food safety hazards can cause food to become unsafe for human consumption, except for: Biological Chemical Metaphysical Physical
Answers (1)
How have technological advancements in knitting affected fabric production? A. by increasing the use of yarn B. by increasing the cost of production C. by increasing design possibilities D. by improving fabric quality E.
Answers (1)
A country that has multinational corporations is most likely to be
Answers (2)
If a tree grew more than 3 feet during the year, how much more likely is it that the tree was at most 50 yards from the river?
Answers (2)
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?