<span>Because interest income is usually the largest component of a bank's income, specifically for a commercial bank. (Investment banks earn more from fees and trading.)</span>
Answer:
higher in the steel market, lower in the rice market, and unchanged in the TV market
Explanation:
Producer surplus can be defined as the variance between the amount an individual or nation is willing to take for certain quantity of a product versus the amount they receive when the goods are sold at the market value. For the nation of Aquilonia to be importing rice that means producer surplus is higher because the variance is low, it will export rice because the producer variance is low, and hence it wants to give to other countries. But since it is neither exporting nor importing TV, that means that the producer surplus remained the same even after the change in policy.
Answer:
The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.
Explanation:
Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.
Answer:
YTM = 4%
Explanation:
Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s)
IOU (IOU) 6 Apr 19, 2034 111.44 ? 1,851
<u />
<u>Determine the yield to maturity </u>
YTM = Rate * 2
years to maturity = 2034 - 2018 = 16 years
NPER = 2 * 16 = 32
PMT = ( face value * coupon rate ) / 2 = ( 2000 * 6% ) / 2 = 60
price of coupon ( PV ) = 2000 * 111.44% = 2228.8
Rate = 2% ( excel function : RATE(32,60,-2228.8,2000)
hence YTM = 2% * 2 = 4%
The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is <em>e. You charge $3,000 and everyone buys insurance.</em>
$3,000 will be affordable to both the healthy and the unhealthy. This amount of premium will enable both classes to buy insurance.
It will <em>not benefit</em> the company to charge:
- $2,000 and enable everyone to buy insurance
- $3,000 and enable only unhealthy people to get insurance
- $1,000 so that only the healthy people to buy insurance
- $1,000 because only healthy people buy insurance.
Thus, the insurance premium charged should be <em>Option E.</em>
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