I need help answering the following questions about the attached scenario, please view attached file:
1) Identify decisions made by key organizational stakeholders that are affected by interest rates.
2) identify how interest rates affect the cost of operating a business.
3) Find the current yield curve and interpret the effect of its shape on decision-making within the business.
4) Evaluate how changes in interest rates affect the customer demand for the product in the scenario.
5) Explain how business planning and operations are dependent on monetary variables other than interest rates.
1) The following decisions made by key organizational stakeholders are affected by interest rates:
a. Approval of vehicle sales particularly those with mortgage arrangements. This decision is usually made by authorized personnel in Big Drive Auto’s dealers. Mortgage transactions are directly affected by interest rates movement.
b. Cash management decisions of the company’s Finance Department which included decisions on:
i. Where, when and how long to invest excess cash
ii. Where, when and how to source financing ...
This solution is comprised of a detailed, step by step response which clearly indicates how to approach these business-related questions analyzing interest rates, decision-making and other business operations. A Word document is also attached to this solution and contains graphical figures and tables.