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
sashaice [31]
2 years ago
8

Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. She realizes, however, that e

ven if she could evaluate whether a borrower is creditworthy before making a loan, she cannot ensure that her borrower will use the money as promised. She therefore deposits her money in a local bank, a financial intermediary. Because financial intermediaries can track customers' uses of money more easily than Latasha can and take action quickly in cases where borrowers use the money irresponsibly, this is an example of how financial intermediaries can help solve the problem of:
Business
1 answer:
qwelly [4]2 years ago
5 0

Answer:

moral hazard

Explanation:

Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.

Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.

In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.

You might be interested in
3. A trader has a short position of 10 contracts in a crude oil futures contract. Yesterday’s closing price was $55.30/barrel. T
forsale [732]

Answer:

The trader has incurred a loss because the price of crude oil futures has increased.

Loss = (Today's closing price - Yesterday's closing price) * 10 * 100

Loss = (57 - 55.30) * 100 Per contract

Loss = $170 per contract

Loss for 10 contracts = 170 * 10 = $1,700

Now the account balance = Current margin balance - Loss for 10 contracts

The account balance = 28,000 - 1,700

The account balance = $26,300

Maintenance margin for 10 contracts = 2,500 * 10 = $25,000

Since the account balance is greater than the required maintenance margin for 10 contracts, the investor is not required to deposit money into the margin account.

Explanation:

7 0
2 years ago
How to empower employees ?
Zepler [3.9K]

Answer:

set clear boundarys

dont be afaid to yell

Explanation:

8 0
2 years ago
Miss Kitty's Chocolate Corral is located in an out-of-the-way small shopping center. However, the company enjoys outstanding bus
juin [17]

Answer:

D. Word of Mouth

Explanation:

Word of mouth also referred to as viva voce, is the passing of information from person to person using oral communication,

Word of Mouth can be as simple as telling someone the time of day.

An Example of Word of mouth is Storytelling; A common form of Word Of Mouth communication where one person tells others a story about something that really happened or a fictional event.

In marketing, Word of Mouth is An unpaid form of promotion or advertisement in which satisfied customers or users of a particular product or services tell other people how much they like a business, product or service.

Word of Mouth advertising is very important for every business, because each happy customer can steer dozens of new customers to come and patronise you.

From the question, Kitty's company are making good sells and have many customers despite their location because of the positive and delightful things their satisfied customers say about them to other people. Thus Miss Kitty is benefiting from A positive Word Of Mouth.

8 0
3 years ago
To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southw
larisa86 [58]

Answer:

See Explanation section

Explanation:

We know,

Profit = Sales - Expenses

To find the total seminar profit, we have to determine the number of newly opened accounts. As it is binomial distribution, we have to make an equation to reach out the seminar profit -

Therefore, the profit equation = (new opened account × Sales commission) - Fixed seminar costs

Since we do not know how many attended open account, the profit equation of seminar = (New open account × $5,300) - $3,700

6 0
3 years ago
Archway Architects, Inc., makes travel arrangements online and stores the confirming documents and receipts on its servers. Unde
Firlakuza [10]

Answer:

The correct answer is D that it is a record.

Explanation:

Record is the term which is described as keeping a track of the items which is necessary for the business by recording them and can be use a proof if something wrong happen in the business.

So, keeping the documents as well as the receipts on the servers, under the UETA, information which is inscribed, stored in any form is a record.

6 0
3 years ago
Other questions:
  • A loan of $32,000 is to be repaid by the sinking fund method with annual payments. Interest on the loan is paid at a 6% annual e
    10·1 answer
  • Refer to the table above for a certain product's market in econland. if the world price of the product were $6 and an import quo
    15·1 answer
  • Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds
    10·1 answer
  • Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as
    12·1 answer
  • Safty nets should be provided where the falling distance is 25 feet or more
    12·1 answer
  • 3 best basic economic questions
    15·1 answer
  • Identifying the median voter
    8·1 answer
  • On June 30, 2009, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a
    6·1 answer
  • 2.1 Choose/identify FIVE businesses and conduct research on the CSI projects and
    15·1 answer
  • Knowledge Check 01
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!