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3 years ago

The first step in building a good credit record is _____.

Business

1 answer:

Mekhanik [1.2K]3 years ago

8 0

Answer: open a savings account

<span><span>From the given choices (apply for a credit card, open a savings account, apply for a car loan, open a store credit account</span>), the first step in building a good credit record is to open a savings account. </span>

Bank accounts can help you access credit and acquire a home, a car, a personal loan because banks favor existing customers, especially those who manage their money well.

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Which of the following describes a circumstance in which a large, multinational indirect exporter would be better than a smaller

Nataly [62]

Answer:

A. A large, well-established company wants to get its products into several markets at once.

Explanation:

A multinational indirect exporter is ideal to reach foreign markets with a low level of risk as they already have contacts that might help with the distribution and logistics.

8 0

3 years ago

Let L1 and L2 be two lotteries with the same expected return. Suppose L2 has a larger variance and you are risk averse. Would yo

WITCHER [35]

Answer:

option 2) smaller

As CE is the amount which if the agent gets with certainty, then agent will be indifferent between playing lottery or getting that amount with certainty

So L2 is more risky, & agent is risk averse, so agent will be ready to accept a lower amount with certainty ( as compared to the amount for a safer option : L1)

So CE of L2 will be lower

6 0

3 years ago

Determinants of market interest rates

ollegr [7]

Answer:

1. Real risk-free rate.

2. Nominal risk free-rate.

3. Inflation premium.

4. Liquidity risk premium.

5. Liquidity risk premium.

6. Maturity risk premium.

Explanation:

Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;

1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*

2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.

3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.

4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.

5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.

6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.

7 0

3 years ago

Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end

ElenaW [278]

Answer: c

Explanation:

3 0

3 years ago

he long-run average total cost of producing 100 units of output is $4, while the long-run average cost of producing 110 units of

Firlakuza [10]

Answer:

Constant Return to Scale

Explanation:

Based on the information given the numbers

suggest that between 100 and 110 units of output, the firm producing this output has CONSTANT RETURN TO SCALE.

Constant Return to Scale occurs in a situation where the proportional increase in all the inputs is as well equal to the proportional increase in output which means the returns to scale are constant , which is why RETURNS TO SCALE help to describe all what happens to long run returns when the scale of production increases.

Therefore Constant returns to scale often occur when the output increase in exactly the same way or the same proportion as the factors of production.

4 0

3 years ago