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pogonyaev
3 years ago
10

In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high de

bt-to-income ratios, or other signs of a reduced ability to repay the money they borrow.
Business
1 answer:
Stolb23 [73]3 years ago
4 0

Answer:

The correct answer is subprime mortgages.

Explanation:

Subprime mortgages are loans that are provided to those individuals who have low credit scores. These individuals do not qualify for conventional mortgages because of low credit score. They may have a high debt to income ratio or other signs showing a higher risk of default. A higher interest rate is charged on these loans.

Defaults on subprime loans have been blamed for the financial crisis of 2008.

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Camile Plastics Company had the following total assets, liabilities, and equity as of December 31.
Ugo [173]

Answer:

B) 30.70%

Explanation:

Given: Assets= $430000.

          Liabilities= $132000.

          Equity= $298000.

Now, computing to find debt ratio.

Formula; Debt ratio= \frac{Total\ liabilities}{Total\ assets} \times 100

⇒ Debt ratio= \frac{132000}{430000} \times 100

∴ Debt ratio= 30.70\%

Debt ratio determine the financial risk of the company, as higher is the debt ratio, greater is the financial leverage of the company and it also show the percentage of the assets funded by debt.

Hence, 30.70% is the company's debt ratio as of December 31.

8 0
3 years ago
The rate of inflation excluding the effects of food and energy prices is ______
kupik [55]

the core inflation rate

6 0
3 years ago
Read 2 more answers
Which of the following bonds is the most sensitive to changes in market interest rates?A) 5-year, zero couponB) 5-year, 5 percen
antoniya [11.8K]

Answer:

D) 10-year, zero coupon

Explanation:

The zero coupon bonds with longer maturity period are more sensitive to interest rate changes than coupon payments bonds with the same maturity date and  zero coupon bonds with shorter maturity periods.

4 0
3 years ago
A bank has on-balance-sheet assets with a book value of $940 million and a market value of $985 million and on-balance-sheet lia
horsena [70]

Answer:

$45 million

Explanation:

Data provided in the question:

Book value of assets = $940 million

Market value of assets = $985 million

Book value of liabilities = $900 million

Market value of liabilities = $930 million

off-balance-sheet assets = $150 million

Off-balance-sheet liabilities = $160 million

Now,

Stockholders Net worth

= Market value of assets + Off balance sheet assets - Market value of liabilities - Off balance sheet liabilities

= $985 million + $150 million - $930 million - $160 million

= $45 million

8 0
4 years ago
Mrs. Turner is comparing her employer’s retiree insurance to Original Medicare and would like to know what services Original Med
irina1246 [14]

Answer:

Original Medicare covers ambulance services.

Explanation:

Since in the question it is mentioned that the Turner compared her employer retired insurance with respect to the Original Medicare and also she would like to know whether what services are covered if the prescribed criteria are met

So here the original medicare covers the ambulance services as this is a pre hospitalization charges that are mentioned in the insurance policy

5 0
3 years ago
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