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Oksana_A [137]
3 years ago
15

When an investor was analyzing the risks in a property, he was considering an 8% return on his investment compared to a 10% retu

rn. In terms of the purchase price, what will happen?
Business
1 answer:
jekas [21]3 years ago
8 0

Answer:

The higher the risk, the lower the purchase price.

Explanation:

The investment with higher risk should have lower purchase price. When an investment is more risky the rate of returns is higher, so a lower price will be paid for the 10% investment. This is done to balance the risk of loss.

The investment with lower risk and lower returns will carry higher purchase price because probability of loosing invested funds is low.

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The fed’s efforts to manage interest rates and thus the availability of credit is known as?
SIZIF [17.4K]

The fed’s efforts to manage interest rates and thus the availability of credit is known as monetary policy.

To control the total quantity of money in circulation, promote economic growth, and put into action policies like raising interest rates and changing bank reserve requirements, a nation's central bank employs a collection of tools known as monetary policy. The three main tools of monetary policy are the discount rate, reserve requirements, and open market activities.

The Fed influences the cost and accessibility of credit and money to maintain a strong economy as the nation's monetary policy regulator. The three objectives of monetary policy are to curb inflation, moderate employment levels, and maintain long-term interest rates.

To know more about monetary policy refer to: brainly.com/question/28038989

#SPJ4

8 0
2 years ago
The more precisely defined the target market is, the _____ the numbers are to estimate.
bija089 [108]
The answer is a I believe I'm not really sure
4 0
3 years ago
Read 2 more answers
Heath Company uses 10,000 units of a part in its production process. The costs to make a part are: direct material, $12; direct
Korolek [52]

Answer: 40,000 to buy the part

Explanation:

Cost to buy : $55/ 10,000= 550,000


Cost to manufacture: (12+25+13+9)=59


The difference: $4/10,000= 40,000

6 0
1 year ago
After making a sale, a seller may have customers that return goods. The seller uses the perpetual inventory system. This require
anyanavicka [17]

Answer:

D. All of the statements are correct.

Explanation:

The Seller requires to

Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.

Use historical data of sales and returns and calculate the value of expected return items.

After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.

7 0
2 years ago
Typically,high inflation is a sign of
s344n2d4d5 [400]

Answer:

if you are talking about the government that means the economy is growing at a way higher rate than it should be and if the inflation gets to high the bubble pop and the dollar bill becomes more worthless which leads to a bunch of drama

5 0
3 years ago
Read 2 more answers
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