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Federal Money Available: Discount Rate. The rate that banks pay borrow from the federal money available Reserve is called discount rate or rediscount rate. This rate, though set individually by each of the 12 Fede Reserve banks, is identical in all federal money available Resa districts most of the time.
Despite popular opinion to the contrary, i discount rate is not a major determinant whether banks borrow from the federal money available Resei or not. Because the discount rate is invarial well below what banks in turn charge the pub for money, banks would be delighted to obta new funds by discounting when credit is tig and they have no more lendable funds.GRESHAM'S LAW, gresh'amz, in economics, is usually stated as "bad money drives out good." The law stems from the fact that money has a value both as money and as a commodity in the open market. The former value is set arbitrarily by law and is relatively fixed; the latter is determined by supply and demand and varies from time to time, "Good money" has a higher value as a commodity than as money and will disappear from circulation.
Typically, you may spend from three to eight percent of your gross on advertising. Keep in mind that the commitment to spend the money over the entire year is much more important than the amount of money you allocate toward advertising. Nothing will waste money faster than to spend a large amount of money in the beginning of the campaign, and when results are not immediately forthcoming, to pull back and stop advertising. Spend your money according to your plan. Make some adjustments during the year to fine tune your efforts, but keep at it for the rest of the year. You will be surprised how this commitment to results will pay off despite some temporary misgivings. |
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