1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Inga [223]
2 years ago
14

A hypothetical interest rate whose only function is to compensate lenders for the opportunities they forgo by not having access

to the loaned funds is called the ______.
Business
1 answer:
aev [14]2 years ago
6 0

An interest rate that is hypothetical and has the singular function of showing the returns that lenders forego when they don't have access to the loaned funds is pure rate of interest.

<h3>What is the pure rate of interest?</h3><h3 />

The pure interest rate is a rate that is found in perfectly competitive markets and relates to foregone profit.

This rate might be hypothetical but it functions to show how much returns those who loan money would gain if they had access to the money they loaned to a loanee.

This rate is impractical however because it assumes a world where there is no risk which is simply not possible.

In conclusion, this is the pure rate of interest.

Find out more on the pure rate of interest at brainly.com/question/20630240

#SPJ1

You might be interested in
A nation has an absolute advantage in the production of a good, if Group of answer choices it can produce that good at a lower o
Leona [35]

Answer: it can produce that good using fewer resources than its trading partner

Explanation:

A country has an absolute advantage in the production of a good when such country can produce the good using fewer resources than another country.

Absolute advantage can be due to the natural endowment of a country. For example, let's say Japan uses 2 hours in producing a good while Brazil uses 5 hours in producing such good. Then, it can be deduced that Japan has an absolute advantage over Brazil.

6 0
2 years ago
Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station
blagie [28]

B. legal and regulatory requirements

8 0
3 years ago
1. Firms pursuing a cost-leadership strategy seek to ________.
gtnhenbr [62]

Answer:

1. gain a higher market share.

2. inversely proportional to each other.

Explanation:

1. By producing a product at a lower price than the competitors a company will be at an advantage and will be providing same product at a lower price. The customer will definitely go with a low price item if two items are same in value.

2. As value creation requires cost so if the cost is reduced then some of the features will have to be foregone to achieve low cost.

5 0
3 years ago
When crossett corporation was organized in january 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative pr
Vitek1552 [10]

Answer: No, the corporation did not pay a dividend in 2018.

Explanation: The company would not have paid a dividend in 2018 because they had a net loss. Dividends are the profit of the corporation being divided amongst the owners (shareholders). Since there was no profit there would not be dividends.

3 0
3 years ago
Read 2 more answers
A speedboat is considered to be a normal good and a luxury good. therefore, we would expect the income elasticity of demand to b
Soloha48 [4]
<span>Speedboat is considered to be a luxury good. Income elasticity is considered to be positive with the level of income which means if the income level is higher then the demand for luxury goods will also be higher. In this case, as the income increases, the demand of speedboat will be increased. Hence, speedboat has a positive relation with income elasticity of demand.</span>
4 0
3 years ago
Other questions:
  • Which of the following is a disadvantage of being a high self-monitor?
    12·1 answer
  • Suppose that college professors at public universities are unionized. if public university college professors change their minds
    15·1 answer
  • A firm leases equipment under a long-term finance lease (analogous to an installment purchase) that calls for 12 semiannual paym
    5·1 answer
  • The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal y
    13·1 answer
  • If the contribution margin ratio for france company is 45%, sales were $425,000, and fixed costs were $100,000, what was the inc
    8·1 answer
  • Gears Inc., an automobile manufacturing firm, has hired an external agency to handle its employee compensation function so that
    8·2 answers
  • If workers are more educated, then short-run aggregate supply ___________.
    11·1 answer
  • barber charges $20 per haircut. The total cost for running his home-based business is $4,000 per month, which includes his salar
    14·1 answer
  • Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers
    14·1 answer
  • Pedro argued that ___ could be good. He said if the government owned factories, farms and other means of production, the economy
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!