Answer:
D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.
Explanation:
Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.
Answer:
u..............................
Answer:
Cafeteria Plan
Explanation:
The cafeteria plan is minimum benefits that the employer have to provide or personally provide to all the employees working in its organization. In some jurisdictions like USA and Europe, the employer has to provide minimum level of facilities and benefits to the employee which inculdes healthcare, pension contributions, etc.
Answer:
Option "C" is the correct answer to the following question.
Explanation:
Given:
Issue price of share = $100
Market price per share = $100
Preferred stock dividend rate = 7%
Computation of dividend per year :
Dividend per year = Issue price of share × Preferred stock dividend rate
Dividend per year = $100 × 7%
Dividend per year = $7
Dividends are always paid to preferred stock at fixed rates at face value.
Answer:
1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.
2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.
3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.
4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.
