All categories

4 years ago

The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called

1 answer:

4 0

The appropriate response is a moral hazard, it happens when one individual goes for broke in light of the fact that another person bears the cost of those dangers. An ethical peril may happen where the activities of one gathering may change to the impairment of another after a budgetary exchange has occurred.

You might be interested in

Suppose the government of Spartania increased its spending by $900 million to fight a recession. If the government’s budget was

Nina [5.8K]

Answer:

b. the government will have a balanced budget

3 0

3 years ago

The curve that shows how much gdp is demanded at various price levels is called:

pshichka [43]

Aggregate demand curve is the curve that shows how much gdp is demanded at various price levels.

When talking about aggregate demand curves, they show the total demand for a good or service in an economy at any given time. They are broken down into items that are fully completed final eructs and it bases this off of a variable amount of prices the product/service could be sold out.

7 0

3 years ago

Explain what the credit terms of 2/10,n/30 mean. (Check all that apply.) Multiple select question. The full payment is due withi

nekit [7.7K]

Answer:

The full payment is due within a 30-day credit period.

The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.

Explanation:

The credit terms of 2/10,n/30 means that

The credit period available is 30 days in which the fully payment is due

And, if the payment is made within the 10 days so the buyer could eligible for 2% discount on the total price

Therefore the above 2 options should be considered

6 0

3 years ago

Assume that over the past 88 years, u. S. Treasury bills had an average return of 3. 5 percent as compared to 6. 1 percent on lo

zheka24 [161]

The average nominal risk premium on the long-term government bonds was 2.6 percent.

A risk premium is the expected investment return on an asset that is higher than the risk-free rate of return. The risk premium on an asset is a form of compensation for investors. It compensates investors for tolerating the additional risk in a given investment over that of a risk-free asset. Subtracting the return on risk-free investment from the return on investment yields the risk premium.

The nominal risk premium is:

Nominal Risk-Free Rate - Inflation Premium = Real Risk-Free Rate. Nominal rates are the rates we encounter on a daily basis, such as interest rates from banks and other financial institutions.

Nominal risk premium = 6.1 % -3.5 %

= 2.6%.

Learn more about risk premium here-

brainly.com/question/15570868

#SPJ4

8 0

2 years ago

An artisan who creates customized furniture has a customer who is interested in purchasing several pieces of furniture. The arti

koban [17]

Answer:

2) Set the price of each piece of furniture equal to the marginal cost of producing it.

Explanation:

What happens in two-part tariff is that the producer recovers the entire cost of producing by charging price equal to the marginal cost.

This helps him recover cost and the entire fee the producer charges results in profits eventually. Hence, the profits is the consumer 'surplus' that we calculate given that the price of product is equal to marginal cost.

So answer here is 2- Set the price of each piece of furniture equal to the marginal cost of producing it.

8 0

4 years ago