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3 years ago

Which of the following situations would be most likely to lead to an increase in interest rates in the economy?

Business

1 answer:

sveticcg [70]3 years ago

3 0

Answer:

The correct answer is E

Explanation:

The interest rate is defined as the rate of percentage which is charged on the loan or which is paid on the savings. It is the reward for lending as well as the cost of borrowing.

When the interest rate rises or increases, then everyone tend to borrow more amount of money and the high demand of the credit states that the people are willing to pay more for the same.

So, the situation which would increase the interest rate in the economy is when the corporations set up for the expansion plans and increase the demand for the capital.

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As applied to mortgage loans, which of the following statements is FALSE? By increasing the number of payments per year you incr

Ann [662]

Answer:

The statement that is false about mortgage loans is Advertised rates are annual percentage rates.

Explanation:

Mortgage loan refers to a loan that uses real estate as collateral to receive cash upfront to be redeemed after the loan repayment is completed. if the loan is not remitted as at when due , the lender lays claim to the real estate property.

By increasing the number of payments per year you increase your effective borrowing rate.

When you use a spreadsheet to calculate your interest rates, it uses the periodic interest rate, not the annual percentage rate.

You can find a monthly payment by dividing the annual payment by 12.

However, advertised interest rate are not the same as your loan's annual percentage rate (APR) because other charges like mortgage insurance, closing costs, discount points and loan origination fees apply.

5 0

3 years ago

"Consider a C corporation. The corporation earns $13 per share before taxes. After the corporation has paid its corresponding ta

Eddi Din [679]

Answer:

$1.41144

Explanation:

Assuming that distribution of its earning to its shareholder is 30% as against the 0% which is likely a mistake because the tax rate on dividend income of 27% is also given in the question

Earning before tax $13

Less: Corporation tax $5.46

($13 * 42%)

Earnings after tax $7.54

Dividend distribution = $7.54 * 30% = $2.262

After tax dividend = $2.262 * (1-0.27) = $2.262 * 0.78 = $1.7643

Shareholder earnings after Income tax = $1.7643 * (1 - 0.20) = $1.7643 * 0.80 = $1.41144

Therefore, the Shareholder earnings from the Corporation assuming the distribution of its earning to its shareholder is 30% is $1.41144

4 0

3 years ago

What is the financial incentive for the buyer to purchase shares of a stock?

Komok [63]

The answer is a dividend. These companies give their shareholders this payment base on their share of stock. They provided it to show that the company has a stable financial condition. Thus, their trust is gained due to this kind of benefit.

6 0

4 years ago

How does globalization affect labor markets around the world?

evablogger [386]

Answer:

D: it create jobs in some countries while eliminating them in others.

8 0

3 years ago

Read 2 more answers

Mondo Snow Removal's cost formula for its vehicle operating cost is $1,300 per month plus $621 per snow-day. For the month of Ja

Flauer [41]

Answer:

The correct answer is $1,863 (U).

Explanation:

According to the scenario, computation of the given data are as follows:

Planned Activity = 20 days

Actual activity days = 23 days

Contribution margin = $621

Operating cost =- $15,060

So, we can calculate the activity variance by using following formula:

Activity Variance = ( Planned activity days - Actual activity days) × Contribution margin

By putting the value, we get

Activity variance = ( 20 - 23 ) × $621

= -3 × $621

= - $1,863 ( Negative shows unfavorable)

= $1,863 (U)

5 0

3 years ago