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artcher [175]
3 years ago
6

Life insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real e

state developers to build shopping malls and skyscrapers. Auto insurers tend to invest in short-term assets such as Treasury bills. What accounts for these differences? ___ generally need to have funds readily available when a policyholder makes a claim, and Treasury bills are highly liquid. ___ have liabilities with a much longer horizon. ___ is expected to pay off in 30 years, say, so that assets with ___ horizons correspond to their ___ liabilities. In general, insurers can limit their risks by matching the terms of their liabilities with the terms of their assets.
automobile insurers life insurance companies a life insurance policy longer longer-term
automobile insurers
life insurance companies
a life insurance policy
longer
longer-term
Business
1 answer:
andriy [413]3 years ago
4 0

Answer:

The answers are:

  1. automobile insurers
  2. life insurance companies
  3. a life insurance policy
  4. longer
  5. longer-term

Explanation:

When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.

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Schach [20]

Answer:

Bond Price = $875.6574005 rounded off to $875.66

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1,000 * 0.05  = $50

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The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.10)^-3) / 0.10]  + 1000 / (1+0.10)^3

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8 0
3 years ago
Why is it important to maintain network relationships, even after you have found a job?
Svet_ta [14]

Answer:

has to be b

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4 0
2 years ago
Which one of the following represents the expanded basic accounting equation?
DaniilM [7]

Answer:

Option B.

Explanation:

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where,

Equity = Capital + Retained earnings

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On combining these formula, we get

Assets = Liabilities + Capital + Revenue - Expenses - Dividend

It can be rewritten as

Assets + Dividend + Expenses = Liabilities + Capital + Revenue

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4 0
4 years ago
Consumption Goods Capital Goods
Ulleksa [173]

Answer: b. Because the opportunity cost of the fourth unit of capital is the consumption goods that must be given up for this economy to move from three units of capital to four units of capital, but the opportunity cost of four units of capital is  the amount of consumption goods that must be given up to go from zero units of capital to four units of capital.

Explanation:

The opportunity cost of the 4th unit of capital refers to how many units of consumption need to be given up for the economy to move from the third unit to the forth unit of capital. In other words, the economy needs to give up 4 more goods to move from the 3rd unit of capital to the fourth.

But if the Economy was to produce the entire 4 units of capital it would have to give up the entire 10 units of consumption in total.

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DanielleElmas [232]

Answer:

b. coercion

Explanation:

A manager who threatens to withhold support or rewards is using coercion as a political tactic. Employees who work under a coercive management, are forced to follow orders and face a harsh and negative work environment that often leads employees to look for other jobs. Managers who practice coercion feel powerful and might but they don't realize how much damage it causes in the long run for the organization.

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