Answer: Invest according to your risk appetite
Explanation:
The purpose of this question is to measure your risk appetite. There is therefore no right or wrong answer.
If you pick nothing, then you are very risk averse because you don't want to risk your salary on a venture with only a 20% chance of success.
If you would invest a month salary, you are not risk averse but you only have a moderate risk tolerance.
If you invest three months salary on a venture with a 20% chance of success, you have a high tolerance for risk.
If you take it a step further and invest six months salary, this shows that you have a very high risk tolerance.
<span>This close contact often creates new product ideas through "customers input or listening to customers".
The significance of client or customer input increments with market originality of an item up to a point and after that drops off for new items, though the significance of customer input increments with technological newness of an item without dropping off. We likewise found that the significance of customer input essentially builds the utilization of client concentrated statistical surveying techniques; while, neither market nor innovative item novelty in themselves had much direct impact on explore strategies.
</span>
Answer:
A principal-agent game.
Explanation:
The principal-agent problem is a conflict in priorities between the owner of an asset and the person to whom control of the asset has been delegated.
The problem can occur in many situations, from the relationship between a client and a lawyer to the relationship between stockholders and a CEO.
Resolving a principal-agent problem may require changing the system of rewards in order to align priorities or improving the flow of information or both
Answer: b. Because of unpredictable changes in the public's desire to hold cash or borrow and banks' desires to hold reserves or lend.
Explanation:
The Fed is able to embark on monetary policy that influences the entire country - and the world to some extent - because they have very strong influence over the money supply of the US$.
This influence is not absolute however because as the old adage goes, "you can lead a horse to water but you can't make him drink". In other words, the Fed can relax(impose) restrictions to make money more(less) available but they cannot force people to borrow(hold) that money.
They can't force banks either to either hold reserves or lend money out because banks are free to impose their own reserve limits on top of those of the Fed.
Answer:
8.45%
Explanation:
The formula to calculate the rate of interest is:
r = (1/t)(A/P - 1), where
r= Rate of interest
t= Time period: 15 years
A= Accrued amount: 245,000
P= Principal amount: 108,000
Now, you can replace the values to find the rate of interest:
r= (1/15)((245,000/108,000)-1)
r= (0.0667)(2.2685-1)
r= (0.0667)(1.268)
r= 0.0845 → 8.45%
According to this, the answer is that the rate of interst that you must earn to cover the cost of you child's college education is 8.45%.
