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olga_2 [115]
3 years ago
6

Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower exp

ects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation.
b. both the borrower and the lender lose from inflation.
c. the borrower benefits from inflation, while the lender loses from inflation.
d. the lender benefits from inflation, while the borrower loses from inflation.
Business
1 answer:
irakobra [83]3 years ago
8 0

Answer:

Correct option is (c)

Explanation:

Nominal interest rate is the sum of real interest rate and inflation. The lender charged nominal interest rate of 15% expecting inflation to be 10% in the following year. However, inflation was 12%. So, nominal rate becomes 17% (12% + 5%).

The lender should have charged a nominal interest rate of 17% instead of 15%. Now, he has to bear the loss of 2%. Borrower on the other hand benefited as he is paying lower interest rate than what is prevailing in the market.

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Varvara68 [4.7K]

Answer:

a. liable for negligence or mismanagement.

Explanation:

Given that,  

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Since the director of the Super Service Station Corporation does not attend a board meeting for three years plus the president Twyla had done the improper loans that reflect the mismanagement as without knowing the credit history of the people how it could make the loans.  

Moreover, there is no guarantee of returning the money so he is totally liable for his negligence or mismanagement

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5. For the following observations, calculate the class width for a histogram.
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Answer:

See Explanation

Explanation:

Given

The histogram

Required

The class width

The question is poorly formatted, as the histogram cannot be read. So, I will answer your question with the attached histogram

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Lower\ Limits = 1

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6 0
3 years ago
Ari is currently consuming 10 hot dogs and 8 hamburgers per week. The last hot dog she consumed yielded 20 utils while the last
katen-ka-za [31]

Answer:

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So, in this case,

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So,

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SELF REGULATION

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