Because when inflation levels are stable and moderate, investors have lower expectations of high market returns. Conversely, expectations rise when inflation is high.
Joe is risk averse so joe would accept $100 instead of the coin toss. Joe is about to flip a fair coin and will receive $400 if it comes up heads and owe $200 if it comes up tails.
<h3>What Is Risk Averse? </h3>
The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return. In investing, risk equals price volatility. A volatile investment can make you rich or devour your savings.
<h3>What are risk-averse and risk-seeking?</h3>
Risk-seeking confers a high degree of risk tolerance or the number of potential losses an investor is willing to accept. In contrast with risk-seeking investors, risk-averse investors seek low-risk investments and are willing to accept a lower rate of return because of the desire to preserve capital.
To learn more about Risk Averse visit the link
brainly.com/question/15169997
#SPJ4
Answer:
$5,400 billion
Explanation:
The computation of the level of loans would be
We know that
Multiplier = 1 ÷ reserve ratio
= 1 ÷ 0.05
= 20
And the required reserve would be
= Currently reserves - excess reserve
= $300 billion - $30 billion
= $270 billion
Now the level of loan would be
= $270 billion × 20
= $5,400 billion
Answer:
The best choice of the four listed is <u>option a.</u> There is less risk that the borrower will be unable to repay the loan.
Explanation:
In an annuity loan, the payment plan is scheduled in many time intervals, meaning that you will have a lot of time to pay the lender money, no matter how small the amount is. The person borrowing is made to pay money, during this time window, many small amounts of money. Since the borrower will be paying small amount of money from time of time until he or she is done repaying, the lender has an advantage in this situation as they will not be losing money.
Answer:
inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.
Explanation:
