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suter [353]
3 years ago
8

Where do banks get money to lend to borrowers?

Business
1 answer:
PolarNik [594]3 years ago
7 0

Answer:

They create the money they lend to borrowers.

Explanation:

:) Let me know if this helps!

(Are you talking about commercial banks?)

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Assume a company has a cost of capital that is greater than zero and has cash flows related to the changes in net working capita
Otrada [13]

Answer:

A. Decrease

Explanation:

In investment appraisal with the method of Net Present Value, the bone of contention and the central matter is the TIME VALUE OF MONEY.

In the above scenario, the initial working capital was 100% released in proportions of 40%, 40% and 20%, throughout the 3 years of the project. However, if the reverse had been the case, i.e. parting with more cash now and the requirement of working capital now becomes: Year 0 = -10,000, Year 1 = - 10,000, Year 2 = -10,000, Year 3 = +30,000; the NPV would definitely shrink because the value of 10,000 each in Years 0-2 would not be the same when it is recovered from the project in year 3. The value will be smaller and hence the NPV of the project would have decreased as a result of the time value of money.

7 0
3 years ago
When individuals use all available information about an economic variable to make a decision, expectations are?
monitta

when individuals use all available information about an economic variable to make a decision, expectations are   -rational

What is economic variable?

An economic variable is any measurement that helps to consider how an economy may function . for instance  population, poverty rate, inflation, and available resources.

What are the five economic variables?

There are 5 common economic variable that are considered :

output, gross domestic product ( GDP ), production, income, and expenditures.

What factors cause economic growth?

Basically , there are two main cause  of economic growth: growth in the size of the workforce and growth in the production activity (output per hour worked) of that workforce.

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7 0
1 year ago
One of the three economic questions deals with deciding
Savatey [412]
A is the correct answer.
5 0
3 years ago
Find the convexity of a seven-year maturity, 6% coupon bond selling at a yield to maturity of 8%. The bond pays its coupons annu
Julli [10]

Answer:

convexity = 37.6306

Explanation:

given data:

maturity time = 7 years

yield to maturity (y) = 8% = 0.08

coupon bond = 6%

price= $89.59 ( gotten from the summation of pv(cf) from the table attached below )

t = time

convexity can be found using this formula

= \frac{1}{p(1+y)^2}  *  summation of (t +t^2) * pv(cf)

= \frac{1}{89.59*(1.08)^2} * 3932.310   = 37.6306

6 0
3 years ago
When wages exhibit downward and a recession occurs, the decline in employment will be ____________.a. because of the decline in
Dahasolnce [82]

When wages exhibit downward and a recession occurs, the decline in employment will be smaller than what would occur if wages were rigid, smaller when the supply of labor is relatively inelastic and softened because some of the declines in labor demand are absorbed by a fall in wages.

A prolonged period of weak or negative real GDP (output) growth that is accompanied by a noticeably higher unemployment rate is known as a recession. During a recession, a lot of other economic activity indices are similarly weak. For instance, corporate investment and consumer consumption are typically low. Additionally, both the number of enterprises that close and the number of families and businesses that are unable to repay debts is unusually high. The unemployment rate is regarded as a trustworthy and timely summary indicator of a variety of detrimental changes in an economy because these signs are often present when there is a considerable increase in the jobless rate.

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7 0
1 year ago
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