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Tasya [4]
3 years ago
8

According to the liquidity preference theory of the term structure of interest rates, an increase in the yield on long-term corp

orate bonds versus short-term bonds could be due to _______.
a) declining liquidity premiums
b) an expectation of an upcoming recession
c) a decline in future inflation expectations
d) an increase in expected interest rate volatility
Business
1 answer:
Katen [24]3 years ago
4 0

Answer: Option D    

     

Explanation: In simple words, The theory of liquidity preference is a hypothesis that indicates that an investor will demand a higher interest rate or premium on long-term bonds with higher risk because, with all other factors being equal, investors prefer money or other highly liquid capital over other fixed securities.

This phenomenon occurs due to the fact that the interest rate in the market fluctuates heavily on daily basis due to it dependence on various different factors one of which is durability.

Hence from the above we can conclude that the correct option is D .

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Which of the following would NOT affect your FICO score?
Elodia [21]
D) Which is Defaulting on a loan!
8 0
2 years ago
A creamery shop sells its special ice cream for $4.50 a quart. It costs them $3.00 a quart to make it. The daily demand for this
jenyasd209 [6]

Answer and Explanation:

The computation of the service level and the corresponding optimal stocking level is shown below:

Given that

Selling price = SP = $4.50

Cost price = CP  = $3.00

So,

Salvage value =  V  = $1.50

Average daily demand (d) = 35 quarts

The  standard deviation of daily demand  = 4 quarts

based on the above information

Overage cost = (Co) is

= CP - V

= $3.00 - $1.50

= $1.50

Now

Underage cost= (Cu)

= SP - CP

= $4.50 - $3.00

= $1.50

So,  

Service level is

= Cu ÷ (Co + Cu)

= 1.50 ÷ (1.50 + 1.50)

= 1.50 ÷ 3.00

= 0.50

= 50%

Now

At 50 % service level, the value of Z is 0

So,

Optimal stocking level is

= d + Z × standard deviation

= 35 + (0  × 4)

= 35 + 0  

= 35 quarts

7 0
3 years ago
The method of slicing digital messages into parcels, transmitting them along different communication paths, and reassembling the
Nana76 [90]
Is called packet switching 
5 0
2 years ago
The concept of market conduct includes such things as ____.
lbvjy [14]

The concept of market conduct includes such things like profit , loss and assest growth targets.

Explanation:

Market conduct is used in insurance industry to describe the problems that are related to the sale and distribution of insurance. It deals with the pricing and promotion strategies based on the players in the market related to their aim , objective and desicion making process.

Based on this concept all consumers are seen as potential customers with similar needs. They have proper regulations to check the customers are charged fair and reasonable insurance prices.

They will also ensure whether the consumers have access to beneficial and compliant insurance products.

3 0
2 years ago
What can be researched about a nonprofit organization through a regulatory agency?
Alex787 [66]

<u>Answer:</u>

<em>The level of compliance to nonprofit status regulations.</em>

<u>Explanation:</u>

<em>A non profit association (NGO) </em>is a non-benefit, native based gathering that capacities autonomously of government. Operational NGOs, which spotlight on improvement projects.

Although NGOs are constantly responsible monetarily to contributors, there are no lawful way to control their exercises abroad. (A few governments have compromised NGOs' assessment status when they have reprimanded the <em>international strategy of the benefactor government</em>.)

4 0
2 years ago
Read 2 more answers
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