Recently the average rate paid by banks on savings accounts, Ask an Expert

Economics

Recently, the average rate paid by banks on savings accounts was 0.45%. However, at the same time, inflation was around 1.50% what was the average saver’s real rate of interest on his/her earnings? (b) Banks expect that the rate of inflation in the coming year will be 3%. They want a real return of 5%. What nominal rate should they charge borrowers? Explain in complete sentences.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91401089

Have any Question?Write your Review or question?

Related Questions in Business Economics

The table shows the results of a survey in

The table shows the results of a survey in which 400 adults from the? East, 400 adults from the? South, 400 adults from the? Midwest, and 400 adults from the West were asked if traffic congestion is a serious problem. Co ...

Fiona told her friend that she is very fortunate as the

Fiona told her friend that she is very fortunate as the slow-down in the economy has not decreased sales in her grocery store by much compared to sales of new cars in his car dealership. Explain what Fiona meant using th ...

Could you please help me to solve the following economics

Could you please help me to solve the following economics question? "Universal Studios has decided to open a new theme park called Universal Studios Indiana. It will feature the usual attractions other Universal Studios ...

A researcher is interested in the relationship between

A researcher is interested in the relationship between leisure time physical activity, diet, extracurricular activities and hours of sleep with cardiovascular fitness in children ages 6 through 12. She will recruit 100 c ...

Does importation of foreign prescription drugs make sense

Does importation of foreign prescription drugs make sense and should it be allowed? For what reason should the importation of prescription drugs be denied? Are the pros and cons connected, what is better for the public?

If we compare and contrast the four market structures it is

If we compare and contrast the four market structures, it is evident that one market structure is most practiced and evident in the United States. It is the one that promotes and strives on competition. It is the one tha ...

What is an example of a repetitive and specific task in

What is an example of a repetitive and specific task in which you use descriptive statistics on a daily basis. What is an example of how you consciously or subconsciously rely on the presence of descriptive statistics in ...

Ernies utility function isnbspuxnbspy 32xy he has 10 units

Ernie's utility function is U ( x , y ) = 32 xy . He has 10 units of good x and 8 units of good y. Waldo's utility function for the same two goods is U ( x , y ) = 3 x + 5 y . Waldo has 9 units of x and 13 units o ...

A certain device is used to determine the sex of an unborn

A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY with probability 0:8 (but, mistakenly, GIRL with probability 0:2). If ...

Suppose a sports team did a study that showed that the

Suppose a sports team did a study that showed that the demand curve for tickets was perfectly inelastic at the capacity of building up to a price of $350 per ticket, at which point it becomes perfectly elastic. 1) Draw a ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert