Answer:
Proofread for punctuation errors (it's a must!!), Jot down reasons that explain the bad news (I think), Organize your ideas (I think)
Explanation:
I think: Jotting down the reasoning helps/support the information (specifically) the bad news. Organizing your ideas helps to keep everything you write on track and ideas you want to mention always start from check-point A to check-point B and so forth.... (It's my thoughts of an answer)
Question Completion with Options:
A. greater investment.
B. All of the above are correct.
C. higher public saving.
D. a higher interest rate.
Answer:
Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to
D. a higher interest rate.
Explanation:
When the government is operating a budget deficit, it means that its spendings are more than its tax revenues. It then resorts to issuing treasury bills and bonds to finance the deficit. This naturally reduces the price of bonds and raises interest rates. With rising interest rates, firms and individuals reduce their spending. The cost of borrowing becomes more expensive than before.
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Answer: 12.6%
Explanation:
The bank's expected standard deviation after adding this branch will be calculated thus:
= (Total invested in new branch × Expected rate of return) + (1 - Investment in new branch) × Other assets
= (0.2 × 0.15) + (1 - 0.2) × 0.12
= 0.03 + 0.8 × 0.12
= 0.03 + 0.096
= 0.126
= 12.6%
Therefore, the bank's expected standard deviation after adding this branch is 12.6%.
