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labwork [276]
1 year ago
14

U. s. treasury securities considered to be risk-free because they have minimal, if any, ____ risk.

Business
1 answer:
zubka84 [21]1 year ago
8 0

U. s. treasury securities are considered risk-free because they have minimal if any, default risk.

Given that the U.S. government stands behind them with its full faith and credit, Treasury securities are among the safest investments. According to the maturity period, Treasury securities are separated into three major groups:

  • Treasury Notes
  • Treasury Bonds
  • Treasury Bills

You can buy any of these Treasury securities directly from the US government, through a bank, or through a broker. Despite being low-risk, treasuries do have some risks, such as being affected by inflation and interest rate changes. Treasuries have low returns because they are a secure investment. Federal taxes must be paid on interest received on Treasury securities.

To know more about Treasury securities refer to:  brainly.com/question/15004124

#SPJ4

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In general, securities with ____ credit risk and _______ liquidity will offer higher yields. a. lower; lower b. higher; lower c.
dezoksy [38]

Answer:

b. higher; lower

Explanation:

Yield on securities is decided on the basis of risk level and the period to maturity. High risk high return concept is applicable here with an investment for long time. Liquidity is defined as the conversion of investment into cash. So, it you invest in short term security you will have higher liquidity because you can convert your investment in cash in short time and vice versa.

7 0
3 years ago
Gary and Wilma Johnson plan to open a bus tour business taking people from their small City to historic sites along the east coa
Dovator [93]

The answer to the given question above would be Profit Margin. On the given scenario above, since they will be offering different kinds of services at once, what they should pay attention to is the profit margin or the net margin. Profit margin serves as the measurement of profitability. This is expressed in percentage and shows how much the return sales are that are generated by the company based on the amount they have initially invested.

4 0
3 years ago
Read 2 more answers
Imagine that the U.S. Congress, recognizing the importance of being well dressed, started giveing preferential tax treatment to
andrezito [222]

Answer:

Part a.

If the Congress of country U to clothing insurance gives a preferential tax treatment, and the insurance company agrees to pay 80% of the clothing expenses and the tax subsidizes the insurance premium, it will result in increase in the consumption of clothes, because people will buy clothes as if they were free.

With this change in behavior there will be decline in economic efficiency because purchasing of formal and expensive clothing is not done on a regular basis, with clothing insurance people will buy less costly daily wear clothes at subsidized rates or for free and the price of clothes will decrease.

Part b.

People who can pay for the 20% remaining cost of clothes will buy insurance clothing and those who can pay the premium. Moreover, the rich will over consume than the poor because they are the ones who will give more importance to good clothing.

Part c.

If a person spends $2000 on clothing the clothing, insurance cost will be more than $2000 because higher the probability of claim higher will be the premium charged by the insurance company.

Part d.  

This is not a good idea by the Congress of country U because good clothing is something every person would like to have. Like in health insurance, people should be insured for big life threatening health issues and for minor health issues people should pay out of their pockets, because people take health insurance benefits for minor health issues since health is more or less free in the COUNTRY U. The high premium costs and high prices are completely ignored.

7 0
3 years ago
Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of cr
damaskus [11]

Answer:

If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.

Explanation:

Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.

Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.

5 0
3 years ago
The days' sales uncollected ratio is used to: Multiple Choice Estimate how much time is likely to pass before the amount of acco
olchik [2.2K]

Answer:

The days' sales uncollected ratio is used to:  Estimate how much time is likely to pass before the amount of accounts receivable is received in cash

Explanation:

The days' sales uncollected ratio is an Asset Management ratio which calculates the length of time that it to collect credit from a customer and the first option is correct.

7 0
3 years ago
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