Given+the+anticipated+inflation+premium+of+5.75%+and+the+real+rate+of+interest+of+3.25%,+what+is+the+nominal+interest+rate?

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Answer 1

The anticipated inflation premium of 5.75% and the real rate of interest of 3.25%, the Nominal Rate is 0.0919 or 9.19% , explanation is given below.


(1+Nominal Return) = (1+Real return) x (1 + inflation)

Nominal Return has to be calculated

Real Return = 3.25% or 0.0325

Inflation = 5.75% or 0.0575

(1+Nominal Return) = (1 + 0.0325) x (1+0.0575)

Nominal Return = 0.0919 or 9.19%



What is Nominal Rate
The return on a security without accounting for inflation is known as the nominal rate of return. The inflation premium is included in the nominal return, which must be modified to obtain the real return. Short-term nominal interest rates are set by central banks and serve as a benchmark for other interest rates imposed by banks and other financial institutions. Following a significant recession, nominal interest rates may be artificially kept low in order to boost economic activity by encouraging consumer borrowing and spending. But for such stimulus program to be effective, inflation must not be a current or impending threat. The federal funds rate, the interest rate established by the Federal Reserve, is also known as a nominal rate in the United States.

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Related Questions

The demand and supply curves show how buyers and sellers ________; the interaction of buyers and sellers ________.

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The intersection of the supply and demand curves, which balances supply and demand, is a graphic representation of the market-clearing price.

What Is the Law of Supply and Demand?

The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand.  Supply grows as the price rises, while demand declines. In contrast, as the price falls, supply is constrained and demand is increased. levels of supply and demand for various prices can be represented as curves. These curves overlap at the equilibrium, or market-clearing price, where supply and demand are equal. This intersection symbolizes the process of price discovery in the market.

According to the law of demand, demand for a good or resource will decrease as its price increases and increase as its price decreases. According to the law of supply, on the other hand, higher prices tend to increase an economic good's supply while lower ones tend to reduce it.

The product's price elasticity refers to the extent to which changes in price translate into changes in demand and supply. The demand for needs is comparatively inelastic, meaning that it responds less quickly to price changes.

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An engineer would like to set the cost of an ospf interface directly into her route. which interface subcommand allows the engineer to set the cost directly?

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An engineer would like to set the cost of an OSPF interface directly into her route. In order to set the cost of an OSPF interface directly, use the interface subcommand IP OSPF cost.

Sonalysts Combat Simulations created the computer game Subcommand, also known as Akula Seawolf 688(I), which was released in 2001 by Electronic Arts for Windows platforms. The player controls one of the following submarines: a 688, an American Seawolf, or a Russian Akula. Three training missions, 23 single missions, and one 14 mission campaign are all part of Subcommand. There are actually two campaigns because they may be played from either the US or Russian perspective. The single missions include general search-and-destroy operations, battle group escorts, pursuing enemy boomers, and search-and-rescue operations.

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In a memory system employing paging, the chunks of a process (called frames) can be assigned to available chunks of memory (called pages). true false

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This is false. The statement should be "In a memory system employing paging, the chunks of a process called pages can be assigned to available chunks of memory called frames."

Just remember that while we refer to the memory chunks as frames, the process chunks are referred to as pages.

Apparently, one of the two fundamental methods or basic techniques on which the idea and concept of virtual memory is based is "Paging". "Segmentation" is the name of the other one, by the way.

When using this paging, the memory system may experience minimal internal fragmentation but no external fragmentation.

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One rationale for establishing a price skimming objective is that ________ lends status to a product or brand by virtue of a price relatively higher than the competition.

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One rationale for establishing a price skimming objective is that Prestige Pricing lends status to a product or brand by virtue of a price relatively higher than the competition.

Skimming pricing involves setting the expensive price that customers really desiring the product are willing to pay when launching a new product.

Who uses skimming pricing?

Price skimming examples are mostly experienced among tech giants, like Apple, Samsung, Sony, and other companies that discover new technologies that they know are higher in demand

What is meant by skimming price?

a pricing approach in which the manufacturer sets a high launching price to attract buyers with a crave for the product and the resources to buy it, and then gradually decreases the price to attract the next and afterward layers of the market.

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One financial intermediary in our financial structure that helps to reduce the moral hazard from arising from the principal-agent problem is the.

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The venture capital firm is one financial intermediary in our financial system that aids in lowering the moral hazard that results from the principal-agent issue.

A form of private equity and financing offered by investors to start-up companies and small businesses with the potential for long-term growth is known as venture capital (VC). The majority of venture capital is often provided by wealthy individuals, investment banks, and other financial organizations.

However, it doesn't always take the shape of cash; it might also be in the form of technical or management expertise. Startups with exceptional growth potential or companies that have experienced rapid growth and appear to be in a strong position to continue growing frequently receive venture capital.

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In testing the existence assertion for an asset, an auditor ordinarily works from the.

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An auditor often starts with the accounting records and moves to the supporting documentation to verify the existence claim for an asset.

The claim that the assets, liabilities, and shareholder equity balances shown on a company's financial statements exist as of the end of the accounting period that the financial statement covers is known as the assertion of existence. Simply put, this claim guarantees that the information provided is accurate and devoid of any fraudulent activities. For instance, any inventory statement that is part of the financial statement implies that the inventory was there at the end of the accounting period.

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According to "scientific view of risk", most of the public’s view of risk is ___________ than risk experts.

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According to "scientific view of risk", most of the public’s view of risk is differing than risk experts.

What is risk?

Risk refers to the situation of uncertainty that can cause harm or danger to the business or life of the person. It has the general focus over the bad happening.

"Scientific view of risk" is an approach that examines the literature on risk and risk management from a scientific perspective, which is a prominent and important viewpoint in many academic areas.

Therefore, it can be concluded that there is a difference in the view point of the public and risk professionals.

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If the assets of a business increased $101,000 during a period of time and its liabilities increased $73,000 during the same period, equity in the business must have:________

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The equity in the business must have decreased amount I. e. Decreased by $28000 .

Given here, the asset are increased by $101000 and liabilities are $73,000.

So, the total equity present now is given by,

Total asset – Total liabilities.

=28, 000$

So, the total asset are now decreased by 28000$.

A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current. They are acquired or produced in order to raise a company’s value.

Through the transmission of economic benefits like money, products, or services, liabilities are eventually satisfied. Current liabilities are a business’s short-term debts that are due in a year or during a typical operating cycle.

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The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's:______.

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The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's Net Worth.

What is paid in the capital?

Paid-in capital is the amount that businesses get from stockholders in exchange for their shares. A significant component of a company's entire equity is this. Either preferred stock or the common stock may be used as paid-in capital. These monies are only obtained through the issuer's direct sales of shares to investors; they are not derived from any operating activities or from the sale of stock on the secondary market to other investors.

Paid-in capital does not include earnings from continuing business operations; it only includes money earned from the sale of stock.

If a company decides to repurchase shares from its owners, the balance in paid-in capital may be reduced; this can either be done directly in the account or it can be recorded in a contra equity account that is linked with and offsets the paid-in capital account.

Thus, the investor's money is called Net Worth.

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A description of an organization's values, definition of its responsibilities to stakeholders, and identification of its major strategies is called its:_____.

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A description of an organization's values, definition of its responsibilities to stakeholders, and identification of its major strategies are called its Business-level strategy.

What is business-level strategy?

Simply said, a business-level strategy is a structure, plan, or roadmap that enables a company to offer value to consumers and acquire a competitive edge by making the most of its core skills. Your market position will be largely determined by the business-level strategy you pick. Your ultimate organizational goals are actually built upon it. A business-level strategy may take many various forms, but it must always take into account three key components; customer contentment or pleasure (providing value to the customers)gaining and keeping a competitive edge. staying competitively advantaged. A good ROI results in profits.

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The payoff matrix is a fundamental tool of:______
a. monopolistic competition.
b. game theory.
c. corporate finance theory.
d. regulatory oversight.

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The payoff matrix is a fundamental tool of game theory.

A payoff matrix can be used to identify all of the alternatives available to each player in order to help them choose the best possible strategies. Game theory is the study of how individuals choose their course of action in a range of social contexts. It is used to explain how businesses choose how to operate in the market, including how choices are made regarding product pricing, when to release products, and how much money to spend on advertising.

In game theory, the payoff matrix is a key idea. The payoff matrix aids in illustrating each potential result associated with strategic decision-making. A player must consider how their decision will impact the results of the other player as well as how the other player's decision would impact their own.

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A business organization that classifies partners as general or limited is called a?

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A business organization that classifies partners as general or limited is called a Limited liability partnership (LLP)

Limited liability company (LLP)

LLPs also benefit from pass-through taxes and are held by two or more partners. While LLP partners are responsible for their own actions, they are not held personally responsible for the actions of their other partners or for the debts and losses incurred by the company.A general partnership is what kind of business?A general partnership is a company with two or more partners who equally share the assets, liabilities, and debts of the company. In the event that the partnership goes bankrupt, the partners' personal assets might be seized due to their limitless responsibility. A documented partnership agreement should be drafted by the parties.

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When the economy is strong, consumers are _____ likely to borrow money to purchase a home or go on a vacation.

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When the economy is strong, consumers are more likely to borrow money or take loans to purchase a home or go on a vacation.

What is loan?

A loan occurs when one or more individuals, businesses, or other entities lend money to additional individuals, businesses, or other entities. The recipient incurs a debt and is frequently liable for interest charges up until the debt is paid off, in addition to the principle amount borrowed.

A person having strong and stable economy, have a high confidence that he will definitely repay the money he borrowed for any purpose. and this will made them more likely to borrow money for purposes like purchasing home or going on a vacation.

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If an event affects demand such that less of a good, service, or resource is demanded at all prices, we say that:_____.

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If an event affects demand such that less of a good, service, or resource is demanded at all prices, we say that: demand has decreased

What factors change demand?

Demand patterns can change. An entire demand curve might shift right or left due to changes in variables like average income and preferences. As a result, the quantity demanded at a given price can be larger or lower.

The prevailing view presumption. Assuming no other parameters change, demand curves link the prices and quantities required. The ceteris paribus assumption refers to this. This article discusses what transpires when other variables aren't maintained constant.

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Which assessment finding will indicate a life-threatening type i hypersensitivity reaction?

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Type I hypersensitivity reactions include localized allergic reactions such as atopic asthma (allergy-based asthma) and atopic dermatitis, but they also include systemic anaphylaxis. - Serum sickness is an example of Type III.

What is hypersensitivity ?

Any unfavorable immune system-induced reactions, such as allergies and autoimmune diseases, are referred to as hypersensitivity (also called hypersensitive reaction or intolerance). These reactions—often referred to as an immune system overreaction—can be harmful and painful. Contrast this immunologic phrase with the psychiatric term "hypersensitive," which refers to someone who may be abnormally sensitive to physical and/or emotional stimuli.

Although there is a correlation between the two, studies have shown that people with ADHD (a psychiatric disease) are more prone to experience hypersensitive reactions including allergies, asthma, and eczema than people without the disorder. Four different categories of hypersensitivity reactions exist.

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Suppose+you+deposit+$2,555.00+into+an+account+today.+in+15.00+years+the+account+is+worth+$3,954.00.+the+account+earned+____%+per+year.

Answers

The account earned+ 6.6 % per year.

What does one mean by deposit?

You make a deposit when you add money to your bank account. to create savings and generate interest, you ought to put money in a bank. For money you'll withdraw at any time, a requirement deposit is made.

A certificate of deposit is an investment for the long term. once you take out a loan, you'll also pay a deposit as collateral.When you deposit money, you place it during a checking or savings account.

The minimum monthly deposit required from the customer is $100. an individual or item is put or left somewhere when they are deposited there.

What is deposit and withdrawal?

If you're wondering what's the difference between a deposit and a withdrawal, the reality is that they are exact opposites: A deposit is money put into a bank account for safekeeping until you need it. A withdrawal is money that's taken out of your account.

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In some industries, low switching costs can act as an important barrier to entry.
a. true
b. false

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FALSE , In some industries, low switching costs can act as an important barrier to entry.

High switching cost is the barrier to entry not the low switching cost.

Switching cost means customers shifting to the substitute products available in the market.

Barrier to entry is defined as conditions which prevent companies to enter in a market. It limit the competition as no new firm easily join the market.

Some examples of the barrier to entry is high start-up cost, government regulations, high customer switching cost.

Business earn its profit from customers only , if customers will switch to the substitute product , then company will incur high loss. It will act as a barrier to entry.

It protects the market share. Because if no new comer join then market share will not get shared with other new comer.

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For a decision alternative, the weighted average of the payoffs is known as _____.

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The expected value is the weighted average of the payoffs for a selected alternative.

What is a weighted average?

The different levels of statistical significance of the numbers in a data collection are taken into consideration in a weighted average calculation. When computing a weighted average, each value in the data set is multiplied by a defined weight prior to the completion of the final computation. A weighted average can be more accurate than a simple average when each value in a data set is assigned a different weight. The frequency of the values in a data set is balanced mostly by taking a weighted average. Stock investors use a weighted average to keep track of the cost basis of shares bought at various times in time.

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The _____ ignores support department interactions and assigns support department costs only to the producing departments.

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The direct method ignores support department interactions and assigns support department costs only to the producing departments.

The direct allocation method is a technique for charging the cost of service departments to other parts of a business.

The method is easy to implement, but it ignores the fact that other service departments require services from each other, so it's less accurate.

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econ opportunity cost is illustrated by a movement from one point to another on the production possibilities frontier quizlet

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True, econ opportunity cost is illustrated by a movement from one point to another on the production possibilities frontier.

Production Possibilities Curve (PPC) may be a model that sho1w the tradeoffs related to allocating resources between the assembly of two goods. The PPC may be wont to illustrate the concepts of scarcity, cost, efficiency, inefficiency, economic process, and contractions.

Opportunity cost is the forgone benefit that may be derived from an option not chosen. To properly evaluate opportunity costs, the prices and benefits of each option Production Possibilities available must be considered and weighed against the others. A student spends three hours and $20 at the flicks the night before an exam.

The chance cost is time spent studying which money to spend on something else. A farmer chooses to Production Possibilities the chance cost is planting a distinct crop, or an alternate use of the resources (land and farm equipment).

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When a company's business strategy and technology strategy are intertwined, this situation is known as _______.

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When a company's business strategy and technology strategy are intertwined, this situation is known as convergence .

What is Convergence ?

Convergence is the inverse of divergence. It is used to explain the phenomena of the underlying commodity's futures and cash prices growing closer together over time. Most traders use the term convergence to describe the price motion of a futures contract.

In theory, convergence occurs because an efficient market will not permit something to trade for two prices at the same time. Because traders must consider the security's time value, the actual market value of a futures contract is lower than the contract price at issue. As the contract's expiration date approaches, the premium on the time value decreases, and the two values converge.

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George corporation recognized $1,000 of accrued property taxes on its manufacturing facility. the journal entry to record this debits ______.

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In a case whereby George corporation recognized $1,000 of accrued property taxes on its manufacturing facility. the journal entry to record this debits as Manufacturing overhead $1,000 and credits Property taxes payable $1,000.

What is journal entry?

A journal entry  can be described as an act of keeping which involves the  making records of any transactions .

It should be noted that Transactions are listed in an accounting journal so that the  company's debit as well as the credit balances of the company can be shown.

In the case, above , we will record this debits as Manufacturing overhead $1,000 and credits Property taxes payable $1,000, hence  journal entry can encompass several recordings, in a debit or a credit.

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All else being equal, a decrease in ________ would shift the long-run aggregate supply curve (lras) to the left.

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The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

alterations in the overall supply

The aggregate supply/demand model illustrates the macroeconomic interactions between total supply and total demand as well as the factors that influence either total supply or total demand for the economy.

The aggregate supply curve moves to the right when productivity increases or the cost of necessary inputs lowers, allowing for a combination of lower inflation, increased production, and less unemployment.

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

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________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and to expand into new markets.

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Strategic alliances provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and to expand into new markets.

The partnering / agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

This therefore is an easier way to generate resources, gain entry to new markets and share the risk and cost of major development projects.

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The value of plant and equipment worn out in the process of manufacturing goods and services is measured by:_______

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The value of plant and equipment worn out in the process of manufacturing goods and services is measured by: depreciation.

What is depreciation?

Depreciation can be defined as the way in which fixed assets such as  plant, equipment, machinery tend to worn out.

When this fixed assets worn out it reduces their value. Assets value will continue to decrease for the period of time in which they will be used.

Formula for depreciation is:

Depreciation=Cost of asset-Salvage value/Useful life of asset

Therefore the value of plant and equipment worn out in the process of manufacturing goods and services is measured by: depreciation.

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During the year, smite company declared and paid dividends in the amount of $50,000. as part of the closing process, smite should:_________

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During the year, smite company declared and paid dividends in the amount of $50,000. as part of the closing process, smite should: debit retained earnings and credit dividends

What are the appropriate entries for dividends payments?

First and foremost, it should be noted that when dividends are declared, the retained earnings from which dividends is debited with the amount of dividends, since a decrease in an income account is a  debit entry, as a result, the dividends payable account , which shows the amount of  cash dividends to be paid to shareholders is credited, as  a part of the closing process

Upon payment of the dividends, the cash account balance decreases, hence, it is credited such that the corresponding entry would be in dividends payable account which is debited with amount paid.

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The lowest level of management, which usually has the most people to manage, is called _____ management.

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The lowest level of management, which usually has the most people to manage, is called the Supervisory level of management.

What is the Supervisory Level of management?

The first level of management is supervisory, front-line, or first-line management. It also goes by the name of supervisory management. They are in direct contact with the workers since they are "on the line."

Of the three layers, lower-level management is the lowest.

They guarantee the consistency of the workers' continued jobs.

The Keep's daily management.For their team, they plan their careers.feedback on the performance of their staff.They are in charge of supervising each employee's day-to-day tasks and giving them instructions for their work.

First-line managers devote practically all of their attention to organizational internal problems. They are the first to notice issues with how the firm is run, such as uneducated workers, subpar materials, and broken machinery.

Thus,  Supervisory management is the lowest level of management.

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Henry fayol identified five functions of management: planning, organizing, commanding, coordinating, and controlling. these are similar to the traditional four functions of management:__________

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Henry fayol identified five functions of management: planning, organizing, commanding, coordinating, and controlling. these are similar to the traditional four functions of management: Planning, organizing, leading and controlling.

Planning, organizing, leading and controlling

Planning, organizing, leading and controlling are important function of  management as they are vital for companies or  organization that want to run their organization smoothly.

Planning enables companies to plan on how to achieve their set goals and objective.

Therefore Planning, organizing, leading and controlling are similar to the traditional four functions of management

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If investors shift funds from stocks into bank deposits, this ____ the supply of loanable funds and places ____ pressure on interest rates

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If investors shift funds from stocks into bank deposits, this increases the supply of loanable funds and places downward pressure on interest rates.

What is bank deposits?

A bank deposit is cash that is placed in a bank for safekeeping. These payments are paid to a range of deposit accounts, including money market, checking, and savings accounts.

Therefore,

If investors shift funds from stocks into bank deposits, this increases the supply of loanable funds and places downward pressure on interest rates.

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In the human body, epithelium is exemplified at which structural level of organization?

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In the human body, epithelium is exemplified at the tissue level of the structural level of organization.

What is epithelium?

Epithelial tissue is formed by juxtaposed cells that help in the formation of the human organism. The outer layer is the skin, which is responsible for covering the organs and protecting the body, aiding in secretion, waterproofing and sensitivity.

Therefore, there are two types of epithelium, the lining and the glandular, both responsible for the protection and correct functioning of the human body.

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