Week 3 Homework
Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. This homework assignment is worth 20 points.
1. Compare the recognition lag and the implementation lag.
2. Assess the economic situation today. Is the administration more concerned with reducing unemployment or inflation? Does the Fed have a similar opinion? If not, is the administration publicly criticizing the Fed? Is the Fed publicly criticizing the administration? Explain.
3. Stock market conditions serve as a leading economic indicator. Assuming the U.S. economy is in a recession, what are the implications of this indicator? Why might this indicator be inaccurate?
4. Based on what you know about repurchase agreements, would you expect them to have a lower or higher annualized yield than commercial paper? Why?
5. Stanford Corporation arranged a repurchase agreement in which it purchased securities for $4,900,000 and will sell the securities back for $5,000,000 in 40 days. What is the yield (or repo rate) to Stanford Corporation?
Note: please do not include the questions in the body of your homework since the SafeAssign will show a high percentage matching.
Answers
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Posted 05 Oct 2020 06:10 AM
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file 1601880213-Week 3 Homework.docx preview (309 words )
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