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LekaFEV [45]
3 years ago
12

Which is true regarding assets and liabilities? Please choose the correct answer from the following choices, and then select the

submit answer button. Answer choices Morrie's student loan is an asset from Morrie's perspective. Jane's car loan is a liability from Jane's perspective; this same loan is also viewed as a liability from the bank's perspective. Assets are greater than liabilities when there are positive capital requirements. Bank deposits at the Federal Reserve are a liability for the bank.
Business
1 answer:
olga_2 [115]3 years ago
8 0

Answer:

Assets are greater than liabilities when there are positive capital requirements.

Explanation:

  • Morrie's student loan is an asset from Morrie's perspective. {false}

Morrie's student loan is a <em>liability</em> form his/her perspective. It is an asset for the borrower of the loan, usually a bank.

  • Jane's car loan is a liability from Jane's perspective; this same loan is also viewed as a liability from the bank's perspective. {false}

This is one is half true, half false because Jane's loan is a liability from her perspective, but for the borrower, the bank, it is an asset.

  • Assets are greater than liabilities when there are positive capital requirements.{true}

Because Working Capital = Current Assets minus (-) Current Liabilities. Usually Assets need to be grater than liabilities to have positive capital or Working Capital.

  • Bank deposits at the Federal Reserve are a liability for the bank. {false}

Bank deposits at the Federal Reserve are a "special kind" of asset. What I mean by that is a requirement by the Federal Reserve to have a deposit in there as a security or collateral but since that deposit is just there. The bank actually can work or make profit out of it.

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Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0
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The fact that his school work may end up slacking or he is ambitious and will achieve what he wants to
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4 years ago
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Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai
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Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

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Answer:

The correct answer is option d.

Explanation:

The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.  

Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.  

Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.

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