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Charra [1.4K]
3 years ago
14

Which of the following is not an example of moral hazard? Investment banks use 40-1 leverage, knowing that if the market collaps

es, the government will come to the rescue. Domestic automobile companies fail to design high-quality fuel-efficient cars, hoping that the government will save them if oil prices skyrocket. A backcountry skier takes an excessively dangerous run, knowing that local rescue crews will come to his aid if he gets in an accident. Insurance companies stopped offering insurance policies in New Orleans after a major hurricane, knowing the government will offer subsidies to draw people back.
Business
1 answer:
Rus_ich [418]3 years ago
7 0

Answer: Insurance companies stopped offering insurance policies in New Orleans after a major hurricane, knowing the government will offer subsidies to draw people back. <u>Is not an example of moral hazard.</u>

<u></u>

Explanation: In this case the insurance company <u>is looking for its own benefit.</u>

To be an example of moral hazard, the subject should not try to avoid the risk, beyond being exposed to it.

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Bottle Top, Inc. recently announced they will pay their first annual dividend next year in the amount of $0.75 a share. The divi
Korolek [52]

Answer:

$12.50

Explanation:

Data provided in the question

Annual dividend next year = $0.75

Growth rate = 4%

Required rate of return = 10%

So by considering the above information, the price of the share is

= Next year dividend ÷ (Required rate of return - growth rate)

= $0.75 ÷ (10% - 4%)

= ($0.75) ÷ (6%)

= $12.50

Hence we considered all the information which is given in the question

4 0
4 years ago
"Slumming" meant:
Andru [333]

Answer:

A.

Explanation:

The word 'slumming' can be defined as an act of going to socially low-level area and spending time there either with the purpose to do charity or just out of curiosity.

Harlem is a city located in the neighbourhood of New York City after blacks migrated to the place the city became a restricted area to go.

But in the early 1920s, the whites began slumming to Harlem. They left their sophisticated ways to get a share of black life. They packed themselves in speakeasies, dancehalls, jazz clubs, etc.

So, the correct answer is option A.

8 0
3 years ago
Your cousin is currently 9 years old. She will be going to college in 9 years. Your aunt and uncle would like to have $ 100 comm
yawa3891 [41]

Answer:

They need to put into the account a total of $67,290 to ensure that they will have $ 100,000 in 9 ​years.

Explanation:

We have to calculate the present value of the sum needed in 9 years ($100,000), with a annual fixed interest rate of 4.5%.

This can be calculated as:

PV=FV/(1+i)^n\\\\PV=100,000/(1.045)^9\\\\PV=100,000/1.486\\\\PV=67,290

They need to put into the account a total of $67,290 to ensure that they will have $ 100,000 in 9 ​years.

7 0
3 years ago
Ellen has entered all of her monthly expenses. She needs to create a formula that will deduct her monthly expenses from her mont
Naily [24]

Answer:

absolute reference

Explanation:

Based on the information provided within the question it can be said that in this scenario  she uses an absolute reference to identify the cell containing the income value. This refers to an actual fixed location within an excel sheet, and it is usually locked so that the rows and columns associated with it won't change when it is copied.

4 0
3 years ago
why and how is the job market for administrative professionals growing or declining? what effect do you think the economy and te
Contact [7]

Explanation:

The technology will grow until 2022, and our job will have definitely improved by making it easier to communicate to our customers and by providing managers with jobs that managers have been paid less.

The job market for management workers has risen since the economic downturn in the 2008-2009 recessions.

This is anticipated to increase, as administrative workers work in economic sectors, such as education, social services, legal aid, health care and finance, that are growing and creating new jobs. The employers are looking to reoccupy these positions with so many jobs lost during the crisis and the recent recovery in the economy.

7 0
3 years ago
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