1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viktor [21]
3 years ago
7

The real risk-free rate is the increment to purchasing power that the lender earns in order to induce him or her to forego curre

nt consumption.
A. True.
B. False
Business
1 answer:
galben [10]3 years ago
6 0

Answer: True

         

Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.

Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.

   It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.

You might be interested in
A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $4
victus00 [196]

Answer:

The value of the option to wait is $0.70,option A.

Explanation:

In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.

Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.

The formula used in the calculating present value is PV=FV(1+r)^n

Where PV=present value

FV=future value

r=rate of interest

n=number of year

Find attached spreadsheet for detailed calculations.

7 0
3 years ago
The crowding-out effect refers to the possibility that:
Natalka [10]

Answer:

a. a deficit, financed by borrowing in the capital markets, will increase the interest rate and reduce investment in the private sector.

Explanation:

Crowding out effect is when government borrowing from the capital markets leads to an increase in interest rate. this makes it more expensive for private sector to borrow and this reduces investment by private sector

6 0
3 years ago
True or false? if prospects can get the answers to their questions and see themselves as characters in your story, they’ll be mo
Alexxx [7]

This is a <u>true</u> statement. If you can imagine yourself as a prospect who can get answers to your questions and as a character in a business story, you'll be more likely to buy from them rather than a business to which you can't relate.

To effectively tell your company's story, you must have a mission and supporting values that your prospects can relate to.

Your content's narrative conflict should be driven by the needs, problems, and buyer's journey stage of your prospects.

Always keep in mind that every story needs three storytelling components, such as characters, conflict, and resolution, so make sure yours is accurate and relatable.

Learn what appropriate questions a prospective buyer should ask about the operation of the business when buying an existing business: brainly.com/question/25211092

#SPJ4

7 0
1 year ago
If Dennis can pay a police officer off so that he does not get a speeding ticket, he is most likely in what type of culture?
Ghella [55]
What are the answer choices
3 0
3 years ago
Read 2 more answers
Question 4 of 10
ExtremeBDS [4]
I think the answer is either a or c
7 0
1 year ago
Other questions:
  • On January 2, 2014, Sunland Corporation issued 31100 shares of 5% cumulative preferred stock at $100 par value. On December 31,
    8·1 answer
  • What is the difference between anomaly based monitoring and signature based monitoring?
    10·1 answer
  • Support agents at Universal Containers research solutions to customer issues by asking various subject matter experts (SMEs) at
    15·1 answer
  • What are products that consumers demand less of when their income rises
    14·2 answers
  • Why should you purchase insurance?
    5·1 answer
  • Alpaca Corporation had revenues of $245,000 in its first year of operations. The company has not collected on $18,800 of its sal
    13·1 answer
  • Develop a plan in which Ethan can finish his degree without debt
    12·1 answer
  • Alta Loma Industries has three product lines, A, B, and C. The following information is available: A B C Sales $100,000 $90,000
    12·1 answer
  • When creditors, managers, and investors look at expenses as a percentage of revenue, they are __________.
    7·1 answer
  • A. are dividends paid to creditors or investors? explain why. b. how much cash is in the retained earnings account?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!