An example would be
The Cost of flour for a baker
Answer: Hedging
Explanation: because the bank is hedging when it purchases a credit default swap that is offering protection against the default of one of its borrowers.
A person's wisdom is a human characteristic that will generally help them deal with the future
Answer: Option E -- 54.39years old
Explanation:
Compound interest is calculated using compound interest formula. Using compound interest formula, which is A = P(1+(r/n)) ^nt
Where A= Final Amount
P = Initial Principal Amount
r = Interest Rate
n = number of times interest applied per time period
t = number of times period elapsed
You/I would be 54.39years old when you/I retired. Which is Option E
Answer:
price discrimination (third degree price discrimination)
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students