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Veronika [31]
4 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]4 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.

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As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and con
lana [24]

Answer:

Economic Dimension

Explanation:

Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.

In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.

The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.

Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.

Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.

How a company monitor and prepare for each of the three factors will determine its success or failure.

4 0
3 years ago
Xavier has been working at his first post college job for almost a year when his company gives him a raise, resulting in a paych
marshall27 [118]

Answer:9900

Explanation:

600=700

5 0
3 years ago
HELP ASAP!!! One suggested certification for this field is Family and Community Services Competency Assessment and
lions [1.4K]
True Often, a career in Family and Community Services may be entered and followed with only certification.
f. What is considered a license, but is not necessarily a degree?
certification
4 0
3 years ago
On March 1, 2012, Kelly Company lent $3,500 to Tim on a 1-year 6% promissory note. The amount of interest to be accrued on Decem
schepotkina [342]

Answer:

$210

Explanation:

Calculation for what the amount of interest to be accrued on December 31 will be

Using this formula

Accrued interest =Amount lent×Promissory note percentage

Let plug in the formula

Accrued interest=$3,500×6%

Accrued interest=$210

Therefore the amount of interest to be accrued on December 31 will be $210

7 0
3 years ago
How would utility costs be properly classified? Select one: A. Curvilinear B. Fixed C. Variable D. Stepped E. Mixed
ANTONII [103]

Answer: Mixed

Explanation:

Here is the complete question:

Max Machining incurs the following utilities costs at different levels of production:

0 units: $120

500 units: $2,620

1,000 units: $5,120

How would utility costs be properly classified?

A) Curvilinear

B) Variable

C) Mixed

D) Fixed

E) Stepped

The utility cost here will be classified as a mixed cost. A mixed cost is a type of cost that has both fixed and variable cost. At 0 units, $120 was already spent. This shows that this cost is a fixed cost as it doesn't have anything to do with output. It'll still be paid regardless of the number of outputs while the other cost incurred are variable cost which is dependent on the number of outputs of goods.

Based on the explanation above, the answer is mixed cost.

3 0
3 years ago
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