Your income so you dont overspend
Answer:
(B) Leave his portfolio the way it is now
Explanation:
Bond value and market interest rates are inversely related. When the market interest rates are expected to decline and an investor already holds a bond with fixed rate of interest, the value of such bonds shall rise.
Market interest rates refer to the rate of interest other firms are offering on similarly priced bonds. Thus market interest rate also implies investor expectations i.e YTM (yield to maturity) which is used as a discounting factor to ascertain the price of a bond.
Lesser the discounting rate (yield to maturity), higher shall be the value of a bond.
Thus, it is recommended for Mr Smith to (B) leave his portfolio the way it is now.
Answer: soft money
Explanation:
Hard money and soft money are just ways by which several kinds of currencies are being described. While hard money simply refers to coins, soft money is used to refer to the paper currencies.
Soft money can also refer to the cash that is being given to a particular political party that has no limits being attached. It is the money that interests can spend on behalf of candidates without being restricted by federal law.
Insurance is a coverage that assesses the risk of a certain item/person. If that item/person is in good condition, your insurance will be lower because it's less likely it'll get damaged.
This is why if you have a bad driving history, your car insurance is high (as there is a high risk).
If you were to instal an alarm, live in a safe neighbourhood or choose not to install a swimming pool you would actually reduce your insurance.
If you have an alarm, you are less likely to have stuff stolen (safer = less risk).
Living in a safe neighbourhood is safer = less risk.
Not installing a pool means your property remains the same value (putting a pool could increase it), higher risk of someone drowning in the pool, or hurting themselves. So by not building the pool, you'll have a safer environment = less risk.
If you build your house in a floodplain, the chance of your house getting damages by a flood is very very high, so you will have to pay more as there is an increased risk.
