Explain

How would buying or selling government bonds affect the federal funds rate, if it was the central bank that initiated the sale? Seleccione una: The central bank holds the securities static so that the stock market drives the prime rate, thus changing the federal funds rate. The central bank holds the securities static so that the stock market drives the money supply, thus changing the federal funds rate. The central bank uses the sales of securities to change the money supply, thus changing the federal funds rate. The central bank uses the sales of securities to change the prime rate, thus changing the federal funds rate. Which of these is a benefit of calculating the present value of an investment? Seleccione una: It's helpful for knowing how much money a person needs to save now to reach a certain amount in the future. It guarantees higher returns on investments. It shortens the amount of time for the investment to reach the desired amount. It increases the chances of higher returns on investments. What is the prime rate? Seleccione una: The rate that banks charge to other banks who borrow. The rate the Federal Reserve charges to the US government. The rate the Federal Reserve charges to banks who borrow. The rate banks charge to their best customers. PREGUNTA: What is the distinction between the nominal interest rate and the real interest rate? Which is a better indicator of incentives to borrow and lend? Why