All categories

3 years ago

Other things the same, an increase in the interest rate...

Business

1 answer:

Paha777 [63]3 years ago

4 0

Answer: Option(d) is correct.

Explanation:

Other things remains constant, an increase in the interest rate will generally reduces the demand for loanable funds because loanable funds become more expensive for the borrowers. This increase in interest rate also shift the demand curve towards left for the loanable funds.

With increased interest rate, borrowers have to pay more for the loans. Conversely, if there is a fall in an interest rate then as a result demand for the loanable funds increases, as it will become cheaper for the borrowers.

You might be interested in

A short-term mortgage in which small payments are made until the completion of the term, when the entire balance is due, is ____

statuscvo [17]

<span>A short-term mortgage in which small payments are made until the completion of the term, when the entire balance is due, is BALLOON MORTGAGE.

Balloon mortgage is a type of loan that needs to be paid in a lump sum or is repaid at the end of the loan period, in a single payment. Depending on the agreement between the borrower and the lender, this type of payment may be interest free. Interest may apply but is usually smaller than long-term loans.
</span>

8 0

3 years ago

Read 2 more answers

Jacksonville Technical College received $3,445,553 in state aid on September 15 for the fall academic semester. The vice-preside

Vadim26 [7]

this is 173913.0 del 15%

3 0

3 years ago

Lincoln Park Co. has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1

Reil [10]

Answer:

value of the bond = $2,033.33

Explanation:

We know,

Value of the bond, $B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}$

Here,

Face value of par value, FV = $2,000

Coupon payment, I = Face value or Par value × coupon rate

Coupon payment, I = $2,000 × 6.04%

Coupon payment, I = $128

yield to maturity, i = 6.1% = 0.061

number of years, n = 15

Therefore, putting the value in the formula, we can get,

$B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]$

or, $B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]$

or, $B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635$

or, $B_{0} = [128 * 5.5623] + 1,321.3635$

or, $B_{0} =$ $711.9738 + 1,321.3635

Therefore, value of the bond = $2,033.33

3 0

4 years ago

Which of the following statements about torts is correct?

swat32

Hello There!

Your answer would be <u>C). A tortious act may also be a criminal act.</u>

The reason why C would be your answer is because a tortious act is something that harms someone in any way. The reason why it "may" be a criminal act is because determine if the tortious act is a criminal act really depends on the scenario that is occurring. For example, someone could cause a tortious act in a way of self defense, this scenario would be debatable because the person that committed the tortious act had a valid reason in doing so, and that was protecting themselves. But, if a person was to cause a tortious act by hurting someone to steal from them, then that would definitely be a criminal act because they are performing dangerous things to someone else, and the person could file a lawsuit against it.

Let's dive into why the other answer choices are incorrect. We can use the old fashion process of elimination:

Answer choice "A). A tortious act is always a criminal act" is incorrect because it is not always a criminal act, it depends on the scenario it's in. This is the reason why this answer choice would be eliminated.

Answer choice "B). A criminal act is always a tortious act" is incorrect because there are MANY criminal acts that doesn't harm anyone, for example, tax evasion (not paying taxes) is a criminal act, but does not cause any harm to anyone. This is the reason why this answer choice would be eliminated.

Answer choice "D). A tortious act is the same as a contract dispute" is incorrect because harming someone is not the same as not doing what a contract says. A contact dispute is when someone that's part of a contract did not do a duty that the contract says that they're suppose to do, and that usually doesn't have to be any harm to anyone. That would not be the same as a tortious act, harming someone. This is the reason why this answer choice would be eliminated.

6 0

3 years ago

Alma is interested in receiving income to help save money for her grandson’s college education. She is considering investing in

sergij07 [2.7K]

Answer:

D. the company does not have a legal obligation to pay dividends when promised.

Explanation:

Dividends are share of income distributed by the company to shareholders when the company performs good, and earns profit.

But since it is a distribution of income and not a mandatory payment, there might be chances that company do not pay dividends, and might retain the income earned for future growth prospects.

Thus, in order to earn money fast although the company promises to make dividend payments, but it shall be taken care, that the company will necessarily pay dividends.

6 0

4 years ago