Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing is 6 percent, how much do they pay in interest per day on a car with a wholesale price of $50,000?
A) $5.75
B) $7.57
C) $9.50
D) $8.22
D) $8.22
You might also like to view...
Which of the following statements is not correct?
a. Patents help internalize the externalities associated with technological advances. b. Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution. c. Allowing firms to trade pollution permits will lower the total cost of reducing pollution. d. A big impediment to implementing the Coase theorem in many cases is high transactions costs.
Which of the following would shift a market labor supply curve to the right?
a. an increase in the price of output b. an increase in immigration c. a labor-saving technological change d. a decrease in the wage rate
Refer to the diagram for the corn market. A price support of B will cause a transfer from taxpayers to farmers of:
A. 0BKL.
B. MAFG.
C. 0MFG.
D. LKCG.
Refer to the given data. If the Fed reduced the reserve requirement from 20 percent to 16 percent, excess reserves in the commercial banking system would increase by _____ and the monetary multiplier would rise to ____.
Answer the question on the basis of the following consolidated balance sheet of the
commercial banking system. Assume that the reserve requirement is 20 percent. All figures
are in billions and each question should be answered independently of changes specified in all
preceding ones.
A. $10 billion; 5
B. $40 billion; 6.25
C. $10 billion; 10
D. $40 billion; 12.5