Answer:
<em>False</em>
Explanation:
<em>Subprime lending means lending to borrowers and charging interest that is </em><u><em>above</em></u><em> the current prime interest rate. </em>
The <em>current prime interest</em> refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.
The <em>sub-prime lending</em> refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.
Answer:
<em>False</em>
Explanation:
I jus got it right on the assignment.
Answer:
c) $222,500 $313,500
Explanation:
Calculation for cost-to-retail ratio
COST
Beginning inventory $ 30,000
Add: Purchases $190,000
Add: Freight-in $2,500
Cost=$222,500
RETAIL
Beginning inventory $ 45,000
Add: Purchases $260,000
Add: Net markups $8,500
Retail = $313,500
Therefore the cost-to-retail ratio will be $222,500 $313,500
Answer:
hospitals, highways, schools
Explanation:
A municipal bond is a type of debt security made by government entities in order to finance <em>capex </em>(capital expenditures), mainly for the construction of hospitals, highways, schools.
They represent loans that investors give to such government entities and they are usually exempt from the usual taxes on building such things.
Answer:
The correct answer is: price must rise, but equilibrium quantity may rise, fall, or remain unchanged.
Explanation:
If the supply of a product decreases the supply curve will shift to the left. At the same time, if there is an increase in demand, the demand curve will move to the right. This simultaneous shift in both demand and supply will lead to an increase in the price of the product.
The change in the quantity demanded will depend on the extent of change in demand and supply.
If both changes by the same proportion the equilibrium quantity will remain the same. If demand increases more than the decrease in supply the equilibrium quantity will increase. If the demand increases less than decrease in supply, the equilibrium quantity will fall.
