How have recent financial disruptions changed the ways that financial markets are regulated?

1 answer:

7 0

It expands the regulatory authority for the Fed over non-depositary financial institutions, such as hedge funds and mortgage brokers, which had previously operated under little regulatory supervision or accountability. The Dodd-Frank Act of 2010 adopted by the Congress has also been in place. They were established to identify emerging risks within the financial sector in order to reinforce risky practices prior to the crisis.

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Damien McCoy has loaned money to his brother at an interest rate of 5.85 percent. He expects to receive $987, $1,012, $1,062, an

yKpoI14uk [10]

Answer:

The answer is: $3,657

Explanation:

To determine the amount of the loan we have to calculate the present value of the future payments discounting the interest rate of 5.85%.

PV loan = $987 + $1,012 + $1,062 + $1,162

1.0585 1.0585^2 1.0585^3 1.0585^4

PV loan = $932.45 + 903.23 + 895.47 + 925.64

PV loan = $3,656.80

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Relationship between risk and return

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Answer:

Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.

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He would be described as “A sensation seeker”

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2 years ago

A person's debt-to-income ratio describes.

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Answer:

D. how much the person has borrowed compared to how much he or she earns

Explanation:

A person's debt-to-income ratio, abbreviated as DTI, is a measure of a person's monthly debt obligation against their monthly gross income. It shows the fraction or percentage of gross income that is committed to debt repayments. Lenders use the debt-to-income ratio to assess a borrower's ability to repay future loans.

Calculating the debt-to-income ratio requires one to add up all their existing loan repayments and divide that figure with their gross income. Lenders insist on a ration that does not exceed 36% as per the 28/36 rule.

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Answer:

Please see attachment

Explanation:

Please see attachment

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