Answer:
Definition: Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company's insurance products to its clients. Description: Bancassurance arrangement benefits both the firms.
Answer: B. a turnkey system
Explanation: A turnkey system is a system that has been customized for a particular application. It can also be said that it is a ready to run system.
It is a complete computer system that include a hardware, operating system and application(s) designed and sold to satisfy specific business requirements.
An example of a turnkey system is a system designed for an organisation that includes software and hardware for its employees to work with.
Answer: International business
Explanation:
The international business is the term that is refers to the trade of the various types of products, technology and the services at international level.
The internal business encompasses all the activities as it is promoting the various types of ideas about the resources, products, revenue and the technologies across the international boundaries.
According to the given question, the international business is basically acquired the various types of resources from the other countries easily and more efficiently.
Therefore, International business is the correct answer.
Answer:
The new cost of capital if this firm changes capital structure is 1.3
Explanation:
From the provided information:
All equity beta = 1
New D/E ratio = 0.5
Then, the new capital structure with levered beta is given by:
new capital structure = All equity beta *(1 + D/E*(1 - tax rate))
= 1*(1 + 0.5*(1 - 40%))
= 1.3
Therefore, The new cost of capital if this firm changes capital structure is 1.3
Answer:
affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.
Explanation:
This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:
MV = PQ
- M = quantity of money
- V = velocity of money
- P = price level
- Q = quantity of goods
Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:
- the velocity of money has to be constant (AND IT IS NOT CONSTANT)
- real output is independent on money supply (NOT TRUE)
- causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)
