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fredd [130]
3 years ago
11

Which of the following statements is CORRECT?

Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

e. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%.

Explanation:

As we know that

EAR = (1 + r ÷ n)^n -1

where,

EAR = Effective annual rate

r = interest rate

n = number of years

By applying the above formula we know that the effective annual rate should always be greater than the normal annual rate

Hence, the correct option is e.

Therefore all other options would be wrong

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Which of the following is not generally regarded as a legitimate reason for gov't to intervene in a market?
Bess [88]

Answer:

C. To enforce property rights

Explanation:

Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.

Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .

Government budget is anual financial statement showing economy's expected revenue & expenditure .

Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .

Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .

However all these are progressive legitimate reason for govt. Intervention .

But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.

7 0
3 years ago
The crowding out effect will be greater than
ELEN [110]

Answer:

The correct answer to the following question is option B) .

Explanation:

Crowding effect refers to a situation where due to the increase in interest, there is a decrease in investment ( private investment spending ), which in turn leads to decrease in initial increase in investment. Here the interest rate have increased because of the expansionary fiscal policy implemented by the government, where they have increased their spending. A high magnitude of crowding effect can lead to decrease in the money supply in economy.

6 0
3 years ago
Spreadsheet software can be used to do all the following except
agasfer [191]

open a savings account.

3 0
3 years ago
You're the account manager for a client who wants to increase reservations at her boutique hotel. You've been manually managing
Bumek [7]

Answer:<u><em> Apply target cost-per-acquisition (CPA) bidding to drive conversions at her desired CPA.</em></u>

Explanation: In this case the customer wants to gain administrative division at her  hotel, looking for ways to save time and optimize. We can most efficaciously do this by utilizing target cost-per-acquisition (CPA) bidding in order to thrust interpretation at her desired CPA.

<u><em>Therefore the correct option in this case is (d)</em></u>

3 0
3 years ago
E-eyes.com has a new issue of preferred stock it calls 20/20 preferred. the stock will pay a $20 dividend per year, but the firs
Sophie [7]

The price of the stock 19 years from now would be the present value of all the dividends to be paid starting year 20. Here, to compute the PV of the dividends, we can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time.

Value of the stock after 19 years = Dividend year 20/ required return

= $20 / 0.0725

= $275.86

7 0
3 years ago
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