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4 years ago

What is a typical relationship between time and interest rate

2 answers:

7 0

Typically there is a correlation as time passes, interest rates go up. That is great for investments but not so good for debt.

slava [35]4 years ago

6 0

Answer: interest rate

Explanation: Longer time period usually equals higher interest rates.

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Would you expect that the interest rate on a corporate bond would be higher or lower than the rate on a municipal bond of compar

Wittaler [7]

Answer:

Higher

Explanation:

Bonds refer to debt instruments wherein the issuer raises long term finance, agreeing to pay the lenders i.e bondholders a fixed rate of coupon payments apart from principal repayment at the end of the term.

Bonds issued by corporates are termed as corporate bonds whereas bonds issued by municipal or state authorities are termed as municipal bonds.

Municipal bonds are a safer option for investors as the repayment is assured by the state government which is not the case with corporate bonds which are riskier comparatively since corporates might default upon repayment.

To compensate for higher risk involved, corporates have to issue their bonds at higher interest rates than municipal bonds else such bonds would be unattractive.

5 0

3 years ago

produces considerable inefficiency in the use of scarce resources. effectively harnesses the incentives of workers and entrepren

gladu [14]

Complete Question:

The market system:

A. produces considerable inefficiency in the use of scarce resources.

B. effectively harnesses the incentives of workers and entrepreneurs.

C. is not consistent with freedom of choice in the long run.

D. has slowly lost ground to emerging command systems.

Answer:

B. effectively harnesses the incentives of workers and entrepreneurs.

Explanation:

An economic system can be defined as a series of governmental or societal arrangements and a coordinating mechanism used for the allocation of available resources, economic inputs, goods and services across a particular country. The economic system differs according to the method used to coordinate economic activities and who the factors of production belongs to.

Generally, there are basically two (2) main types of economic systems and these are;

1. Command systems.

2. Market systems.

The market system effectively harnesses the incentives of workers and entrepreneurs because workers are able to engage in division of labor and are well compensated for their efficiency in service while the entrepreneur are usually rewarded with an increase in sales and profits.

The market system allows participants to have property rights such as trademarks, patents and copyright. Also, market systems are regulated by the competition among individuals (traders or entrepreneurs) and this gives direction to the market as they pursue self interests and are independent.

7 0

4 years ago

Please help! thank you!

Tatiana [17]

Answer:

Explanation:

Whether you have a loan or a credit card, making late payments or missing payments can cause your credit score to fall.

7 0

2 years ago

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 16

DanielleElmas [232]

Answer:

Results are below.

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 12,000 + 87,000 - 23,000

COGS= $76,000

Traditional format income statement:

Sales= 14,000*16= 224,000

COGS= (76,000)

Gross profit= 148,000

Total selling expense= (20,000 + 14,000*1)= (34,000)

Total administrative expense= (13,000 + 14,000*1)= (27,000)

Net operating income= 87,000

Contribution format income statement:

Sales= 14,000*16= 224,000

Total variable cost= (76,000 + 14,000 + 14,000)= (104,000)

Contribution margin= 120,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (13,000)

Net operating income= 87,000

5 0

3 years ago

Question help using ________ may cause a manager to reject a project that may be profitable to the company as a whole

mr Goodwill [35]

The answer is ROI
If the manager is evaluated based on Return on Investment, that manager will be very likely to reject every projeccts which return is below a certain departement standard no matter if that project is profitable for the company in the fear of being replaced by those who show better numbers.

7 0

4 years ago

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