Explain how the federal reserve would implement a rise in the target range for the federal funds rate? the federal reserve would the interest rate on excess reserves (ioer), an interest rate that it controls directly. this the minimum rate at which banks would be willing to lend because they can earn the ioer rate risk-free by depositing these funds with the fed.

Taking commercial paper means the holder acts honestly

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?