1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veronika [31]
3 years ago
7

A bank has an average duration of its liabilities equal to 2 years. The bank's average duration of its assets is 3.5 years. The

bank's market value of equity is at risk if _______________________.'
Business
1 answer:
Andreas93 [3]3 years ago
6 0

Answer: Interest rate rises

Explanation:

When interest rates rises, or move up cost of borrowing becomes higher and expensive. This results in the demand for lower-yield bonds dropping, which causes their prices to drop.

A decrease in interest rates will always lead to investors moving money from the bond market to the equity market, which results in the rise or influx of new capital. This puts the banks market value of equity at a disadvantage.

You might be interested in
Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o
AysviL [449]

The answer is<u> "political risk".</u>


Political risk is among the most critical hazard factors confronting international investors. In many rising and frontier markets, the political circumstance is altogether less steady than the United States with the potential for across the board extortion and defilement.  

Political risks  are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0
3 years ago
Service factors are the functions available on the website to provide direct support in the transaction process. T/F
Eva8 [605]

Answer:

The correct answer is False.

Explanation:

Every client expects and wishes to be treated with correction in an establishment. Feel well received, appreciate that it is important for the company, perceive that it is well valued. He also hopes that the relationship will be pleasant and that the bidder will fulfill his commitments.

These factors are valued in the customer service both face-to-face or telephone or virtual: courtesy, credibility, speed, personalization, professionalization and the tangible aspect of the service.

It is necessary to give a courteous treatment to the client. Courtesy is reflected in the consideration shown to customers. Treat them with the respect they deserve.

5 0
3 years ago
What are the implied warranties under the Uniform Commercial Code?
lapo4ka [179]
In particular, Article 2 of the Uniform Commercial Code creates warranties of merchantability, fitness for a particular purpose, and non-infringement in contracts for the sale of goods. [1] These implied warranties significantly expand the seller's exposure for potential liabilities to the buyer.
5 0
3 years ago
In a fuel economy study, each of 3 race cars is tested using 5 different brands of gasoline at 7 test sites located in different
romanna [79]

Answer:

210

Explanation:

  • The number of race cars = N₁ = 3
  • The number of gasoline brands = N₂ = 5
  • The number of test sites = N₃ = 7
  • The number of drivers that participated = N₄ = 2

This study must include each N₁, and it has to be done at each N₃, using each N₂, while carried out by each N₄ ⇒ that means that the total number of possibilities:

N₁ x N₃ x N₂ x N₄ = 3 x 7 x 5 x 2 = 210

The total number of test runs is 210.

4 0
3 years ago
The Bethlehem Inn is an all-equity firm with 9,000 shares outstanding at a value per share of $26.80. The firm is issuing $39,93
IgorLugansk [536]

Answer:

Value of equity = 9,000 x $26.80 =  $241,200

Value of debt issued = $39.932

Value of equity after debt repayment = $241,200 - $39,932

                                                                          =  $201,268                                                                                                                                                                                                                                                                                

No of equity outstanding after debt repayment = <u>$201,268</u>

                                                                                    $26.80

                                                                               =  7,510 shares

Explanation:

In this regard, there is need to determine the value of equity after debt repayment, which is value of equity minus value of debt repaid. Then,we  will divide the value of equity after debt repayment by the value of equity per share. This gives the number of shares outstanding after debt repayment.

3 0
3 years ago
Other questions:
  • Which option do you choose to prevent a slide from displaying during a presentation?
    13·1 answer
  • Journalizing sales transactions-periodic inventory system Journalize the following sales transactions for Straight Shot Archery
    11·1 answer
  • An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
    11·1 answer
  • List the four stages of ability development. Provide an example of a person developing a specific ability. What would each stage
    14·2 answers
  • A buyer is looking for a multi-family option that includes common area maintenance and will allow him to take advantage of tax i
    5·1 answer
  • What is meant by "tax allocation within a period"? What is the justification for such practices?
    13·1 answer
  • Assuming all else is constant, which of the following statements is correct?
    6·1 answer
  • the lead paint addendum that must be presented with the purchase and sale contract for certain older homes will
    5·1 answer
  • Maebyeong bottles are a part of which nation cultural past? a. china c. korea b. taiwan d. japan please select the best answer f
    7·1 answer
  • Those who lie to others can begin to perceive the recipients of the lies as less honest and trustworthy. This phenomenon is term
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!