Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

The prime rate, and other interest rates, offered by banks often change in the same direction as a change in the Fed's target for the federal funds rate. As an employee of a Federal Reserve District Bank, you have been told that your District Bank will be increasing its discount rate early next week. Expectations are that an increase in the discount rate will lead to an increase in the federal funds rate, which will lead to an increase in the prime rate and other bank lending rates. You have been thinking about buying a new automobile for the past couple of months. Given this information of a planned discount rate increase, you are considering buying your new automobile before the end of the week. What are the ethical issues, if any, involved in this scenario? What would you do?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92173484
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Basic Finance

If you deposit 600 every year for the next 9 years with

If you deposit $600 every year for the next 9 years, with first deposit to be made today and all deposits to be made at the beginning of every year, in an account that pays 6.12% APR with annual compounding, how much mon ...

1 what is the value today of single payment of 2875 made 19

1) What is the value today, of single payment of $2,875 made 19 years from today, if the value is discounted at a rate of 20.00%? 2) How many years would it take an investment of $859 to grow to $12,339 at an annual rate ...

You are 25 years old and have not started saving for

You are 25 years old and have not started saving for retirement yet. You want to retire at 55. You want $1,000,000 in your account. You can earn 5% on average over the next 30 years. How much do you have to save each mon ...

Question - you purchase a machine for 100000 such machine

Question - You purchase a machine for $100,000. Such machine has a 3-year MACRS classification. If the machine is sold at the end of the second year for $45,000, what are the after-tax proceeds from the sale, assuming yo ...

Question - john roberts has 4218053 in a brokerage account

Question - John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an additional $5,000 to the account at the end of every year. The brokerage account has an expected annual return of 12 percent. I ...

Common stock versus warrant investment tom baldwin can

Common stock versus warrant investment Tom Baldwin can invest $6,300 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $30 per share. Its warrants, which provide f ...

Use the following datapurchase costdown payment 1500loan

Use the following data: PURCHASE COST Down payment: $1,500 Loan payment: $450 for 48 months Estimated value at end of loan: $4,000 Opportunity cost interest rate: 4 percent par year LEASING COST Security deposit: $500 Le ...

If someone owns a hair salon what type if any life

If someone owns a hair salon what type if any life insurance should they have if their spouse works at a nuclear plant? How much coverage should the owner have?

A you are awarded a 10 pay raise inflation for the upcoming

a) You are awarded a 10% pay raise. Inflation for the upcoming year is 3.9%. What is your real pay raise? Answer in percent and round to two decimal places. b) According to the yield curve, the one-year rate is 4% and th ...

Certain financial ratios for elizabeth arden for its most

Certain financial ratios for Elizabeth Arden for its most recent year below, along with the average ratios for its industry. Based on those ratio a. Does Arden seem to prefer to finance its assets with debt or with equit ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As