Answer:
D. Fall; Surplus
Explanation:
Loanable Funds
This is simply the sum total of all the money individuals in an economy or nation have decided to save and lend to borrowers as an investment rather than use for individual consumption. The market describes how money is borrowed. It illustrates the interactions between savers and borrowers in a country.
Interest rate here is determined by the demand and Supply of loanable funds. When the Savers and More than the borrowers, that is, supply is larger than demand, interest Rate generally FALLS (drops). This is as a result of the SURPLUS loanable funds available.
A good example is in the question, where the borrowers want 100million and the Savers are saving 125 million.
The Savers amount are more than the borrowers amount by 25 million, hence a fall in interest rate due to that Surplus.
A substitute is something you replace and use something different in it's place.
Complement is something added to enhance the original
Answer: Invest according to your risk appetite
Explanation:
The purpose of this question is to measure your risk appetite. There is therefore no right or wrong answer.
If you pick nothing, then you are very risk averse because you don't want to risk your salary on a venture with only a 20% chance of success.
If you would invest a month salary, you are not risk averse but you only have a moderate risk tolerance.
If you invest three months salary on a venture with a 20% chance of success, you have a high tolerance for risk.
If you take it a step further and invest six months salary, this shows that you have a very high risk tolerance.
Answer:
$197,263.7
Explanation:
The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,
the interest rate will be -6%
The formula for compound interest is FV = PV × (1+r)^n
in this case
FV= current value
PV= $237,500
r= -6% or -0.06%
n= 3 years
Fv= $237, 500 x ( 1 + (-0.06)^3
Fv=$237,500 x (0.94)^3
Fv= $237,500 x 0.830584
Fv= $197,263.7
The current value =$197,263.7
Answer:
Capability index = 0.4444
Explanation:
Given:
lower specification limit = 22.8 mm
Upper specification limit = 23.2 mm
The standard deviation = 0.15 mm
Mean = 23 mm
Capability index = ?
Computation of Capability index:
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = 0.4444
