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VARVARA [1.3K]
2 years ago
6

If a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the lo

an thereby increasing the loan balance even though the required payment is being made. This is known as ___________.
Business
1 answer:
spin [16.1K]2 years ago
6 0

The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.

<h3>What is negative amortization?</h3>

A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.

Such condition of a negative amortization arises as the amount being repaid does not fully or partly cover the interest amount.

Hence, the significance of negative amortization is aforementioned.

Learn more about negative amortization here:

brainly.com/question/22232264

#SPJ1

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Where is market equilibrium located
Lina20 [59]

Answer:

B. at the intersection of supply and demand

Explanation:

Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.

In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.  

8 0
2 years ago
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The
Tomtit [17]

Answer:

The correct answer is: neither the first nor the second would promote growth.

Explanation:

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The first is to increase barriers to trade.The second is to restrict foreign portfolio investment.Which of these policies would most economist think would promote growth

One of the main statistical indicators used to measure the economic evolution of a country is the Gross Domestic Product (GDP). In the macroeconomic analysis of any State, the interpretation of this value is essential to know the degree of economic development and its trends.

The weak growth of productivity in many advanced and emerging market economies after the international financial crisis is raising concerns about growth prospects. A new study indicates that reducing barriers to international trade and foreign direct investment (FDI) could stimulate productivity and output.

The entry of portfolio investment into the country is associated with the yield and risk differentials of the country abroad. This means that a change in the perception of country risk is not necessary. Rather, they need to change in relation to existing alternatives in other countries. Therefore, significant movements in this area do not necessarily reflect a change in the state of the country's economy, however, they can have important repercussions on the exchange rate and other fundamental variables of the financial markets.

7 0
3 years ago
What is an advantage of entrepreneurship
Margarita [4]
Entrepreneurship comes with its share of ups and downs. The most obvious advantage is the opportunity to be your own boss. Being in charge and making the important decisions regarding your business can be fulfilling, but it can also be challenging.
6 0
3 years ago
Read 2 more answers
The method of informing that focuses on how something is similar to and different from other things is called:
yaroslaw [1]

Answer:

comparison and contrast

Explanation: the definitation and meaning is expained in speech chapter 12

4 0
3 years ago
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Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $4 trillion while raising only $3 trillion
Nady [450]

Answer:

$40 billion

Explanation:

Data provided in the question:

Amount spend by government = $4 trillion

Amount raised by Taxes = $3 trillion

Interest rate = 4%

Now,

The bonds to be raised by the government

= Amount spend by government - Amount raised by Taxes

= $4 trillion - $3 trillion

= $1 trillion

or

= $1000 billion

Therefore,

The interest paid by the government each year

= Amount of bonds × Interest rate

= $1000 billion × 0.04

= $40 billion

6 0
3 years ago
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