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tester [92]
3 years ago
14

An off-balance-sheet asset is an item that moves onto the asset side of the balance sheet when a contingent event occurs or at t

he end of a financial period. True or false?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
6 0

Answer:

True

Explanation:

Off -balance-sheet asset

Off-balance-sheet asset is an asset kept offthe balance sheet until a specified event occurs. When the contingent event occurs, the asset item or activity - moves onto the asset side of the balance sheet, or income is noticed on the income statement  

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why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too
Whitepunk [10]

I believe the answer is: c. to make the loan look more attractive and competitive now

By offering it at low initial rate, the people who borrow money would experience low burden if they plan to return the money within short period of time. This would make them much more likely to obtain a loan, and it also would make the bank that create the loan program looks better compared to their competitors.

8 0
3 years ago
Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.
Romashka [77]

Answer:

1. Increasing

2. A. The elasticity of private saving with respect to the after-tax real interest rate

B. The response of private saving to changes in the government budget deficit

C. The elasticity of investment with respect to the interest rate

Explanation:

1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.

A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.

2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.

The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.

The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.

Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.

7 0
3 years ago
On a total product curve with labor on the horizontal axis, the inflection point represents the quantity of labor where
emmainna [20.7K]
The appropriate response is the marginal product of labor is at its most elevated. In financial aspects, the marginal product of labor (MPL) is the adjustment in yield that outcomes from utilizing an additional unit of work. The minimal result of an element of generation is by and large characterized as the adjustment in yield-related with an adjustment in that component, holding different contributions to creation steady.
3 0
3 years ago
In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex
Bingel [31]

Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

When he spend some time with his wife sunk cost will be = $70

8 0
3 years ago
Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflatio
strojnjashka [21]

Answer: c) Both economies grew at the same rate

Explanation:

The faster growing economy would be the one that saw a greater increase in Real GDP than the other.

Real GDP growth = Nominal GDP growth - Inflation growth.

Hyperpolis Real GDP growth = 15% - 12%

Hyperpolis Real GDP growth = 3%

Superpolis Real GDP growth = 6% - 3%

Superpolis Real GDP growth = 3%

<em>Both countries grew at the same rate of 3%. </em>

7 0
3 years ago
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