Answer:
The answer is: due to risk aversion
Explanation:
Imagine all the money you had were those $20,000. You can choose to deposit them on a bank an earn $600 a year or lend them to someone else and get $1,600 a year.
I believe very few people would assume the risk of lending the money directly to a third party. Maybe if you know that person (e.g. maybe your brother) and really trust him or her, you could do that, but generally speaking, this rarely happens.
Every bank has a percentage of the loans they give out that are never paid back. Besides the costs incurred in running a business, banks also have to consider bad credits which will make them lose money. One of the duties of the bank is to reduce that risk and the number of possible bad credits, but they will never be zero. Imagine now that you lend your $20,000 to a bad creditor, you might lose all your money.
At the end it all depends on how much risk you are willing to take.
Answer:
1.90%
Explanation:
For TIPS provide rate of real rate,
Inflation rate=return on T bond-return on TIPS-maturity risk premium and it is equal to
= 5%-2.10%-1%=1.90%.
Therefore the expected rate of inflation over the next 10 years is 1.90%
A bull market is characterized by e. <u>investor optimism.</u>
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In 2022 stock buyers suffered their worst beginning to 12 months considering the fact that in 1970, the S&P 500 fell 21 percent at some point in the first half of 2022. The broadly tracked stock marketplace index fell into undergoing marketplace territory on June thirteen after the last extra than 20 percent beneath its high reached in early January.
A bull marketplace takes place when securities are on the upward thrust, even as a endure marketplace happens whilst securities fall for a sustained time frame. it's vital to apprehend the differences between bull and endure markets and the way they affect your funding choices.
A bull marketplace is a period of time in monetary markets while the rate of an asset or safety rises constantly. The generally widely widespread definition of a bull market is while stock expenses upward push by means of 20% after declines of 20% every.
Learn more about the bull market here: brainly.com/question/14340872
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Answer:
Si un país exporta un valor mayor al que importa, tiene un superávit comercial o una balanza comercial positiva y, a la inversa, si un país importa un valor mayor que el que exporta, tiene un déficit comercial o una balanza comercial negativa. A partir de 2016, alrededor de 60 de 200 países tienen un superávit comercial.
Explanation:
Answer:
<h2>
Hennigan Rentals:</h2>
Hennigan is owed $175 from its customers on December 31.
Explanation:
Accounts Receivable
Date Description Debit Credit Balance
Dec. 8 Cash $75 ($75)
Dec. 20 Earned Rentals $750 $675
Dec. 31 Cash $500 $175
When a rental company accepts payment in advance of its service, it increases the cash balance and reduces the Accounts Receivable. In the same way, when cash is received for services already rendered and invoiced, the cash balance is increased and the Accounts Receivable reduced by the same amount.
Accounts Receivable represents the total amount owed to a company resulting from the provision of goods and services on credit. The balance forms part of the current assets in the company's balance sheet.
A journal entry for a sale on account debits account receivable and credits revenue account. When the customer pays on account, cash is debited while the accounts receivable is credited. At the end of the period, the account is balanced.
