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photoshop1234 [79]
4 years ago
5

Two investors, Drew and Sidney, are investing in fixed income assets. Drew has a fixed income portfolio worth $5000 with a durat

ion of 10 years. Sidney has a fixed income asset portfolio worth $8,000 with a duration of 5 years. Interest rates just jumped up by five basis points today. Which investor’s portfolio saw a larger loss?
Business
1 answer:
navik [9.2K]4 years ago
6 0

Answer:

I would have to say Drew

Explanation:

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Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to unce
gizmo_the_mogwai [7]

Answer:

The increase in reserve will ultimately lead to an increase in the money supplied.

Explanation:

From the scenario under study, the bank is greeted with uncertain economic realities. To cope with this, the bank resolves that rather than lend out excess reserves, it should rather increase the percentage of deposits held as reserve from 10% to 25%. Thus, this leads to a multiplier effect. And the reserve ratio from the forgoing is 1 to 4. That is, 1/10 to 1/4. Meaning there's a reduction in multiplier effecf of 10 to 4. And looking critically, this is a reciprocal of the new reserve ratio of 1/4

When bank hold more reserve, the ripple effect is that the Fed would buy more bonds. To increase the money supply by $200, however, the Fed will need to get a bond of $50.

The implication of this is that the bank reserve will rise in same amount. But taking the multiplier effect into cognizance, a small multiplier will be occasioned in form:

$50 * 4= $200.

Effectively, we have increased the money supply by $200, owing to the multiplier effect.

7 0
4 years ago
Read 2 more answers
Fernando teve uma ideia genial, conseguiu transformá-la em uma oportunidade de negócio e agora está querendo montar um empreendi
larisa86 [58]

Answer:  

I. Capital Próprio

Explanation:

Considerando que Basílio seja Fernando e ele tenha dinheiro para investir na empresa (não é dito se ele precisa arrecadar o capital de fora ou não), a melhor opção seria capital próprio, onde ele teria completo controle sobre a empresa e qualquer decisão gerencial sairá dele e dele apenas. Caso ele não tenha capital para investir, a opção que menos deixa ele dependendo de outra pessoa seria o financiamento bancário, onde as decisões continuam com ele, tendo ele apenas que pagar o financiamento ao banco.

8 0
3 years ago
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an
Vladimir [108]

Answer:

The correct answer to the following question is warehousing.

Explanation:

Warehousing can be defined as process in which banks and lenders would provide mortgage loans to consumers , with the intention of quickly selling those loans in the secondary market. Here the individual loans would be bundled together based on some common element like size of the mortgage or the creditworthiness of the borrowers and all these loans would be sold as a single unit.

3 0
3 years ago
Which two of these should you do if your lender rejects your loan application?
saul85 [17]

Answer:

Find out the reason why the loan was rejected

You can also look for another lender

Explanation:

Loan application could be declined for so many reasons. However , in a situation where an application is not granted , it is good to find out the reasons behind the decision so as to avoid repeating such in subsequent application.

Another step to be taken after denial of application is to look for alternative lender and make another application . One may also need to improve on the application to avoid another denial this time around.

5 0
4 years ago
Read 2 more answers
Which trade bloc was created to encourage free trade and economiccooperation between Canada, Mexico, and the United States?
Vsevolod [243]

Answer:

B. NAFTA

Explanation:

North American Free Trade Agreement (NAFTA) is a regional agreement between the Government of Canada, the Government of the United Mexican States, and the Government of the United States of America that created a free trade zone.

NAFTA administers the mechanisms stipulated in the Treaty to resolve commercial disputes between national industries or the governments of the party countries in a timely and impartial manner.

8 0
3 years ago
Read 2 more answers
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