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miv72 [106K]
3 years ago
13

Suppose Alyssa comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertis

e to evaluate the credit risks of potential borrowers. she decides to deposit the money in her local bank, a financial intermediary. This is an example of how financial intermediaries can help solve the problem of:
Business
1 answer:
Oksana_A [137]3 years ago
4 0

Answer:

This is an example of how financial intermediaries can help solve the problem of moral harzard.

Explanation:

A moral harzard problems occurs when one party to a transaction changes his or her behavior in a way that is hidden and costly to the other party and, specifically, might undertake behavior. On the other hand, financial intermediaries can require the borrower to provide evidence of how the borrowed funds are being used and can give out the loan in installments. Alyssa can avoid this problem by indirectly lending her money through a financial intermediary.

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Janet decides to sow grass in a rectangular plot of her garden that has a length of 30 ft and height of 25 ft. It costs her $9.5
Serga [27]

Answer:

No

Explanation:

If Janet Decides to make height and base half, then the area is multiplied by 1/4.

New height according to Janet = 25 ft / 2 = 12.5 ft

New Length of garden = 30 ft / 2 = 15 ft

Area of garden = Length x height

= 15 x 12.5

= 187.5  

Total amount spend on this land = Area of garden x Cost

= 187.5 x $9.50

= $1781.25

Therefore, she will have to pay $1781.25

6 0
3 years ago
A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the inte
Troyanec [42]

Answer:

The APY is 14.9%

Explanation:

To find the annual percentage yield we need to compute the effective annual rate of interest.

The Effective annual rate of return(EAR) is the equivalent rate to be paid where compounding is done frequently at period or interval less than a year.

Compounding implies the regular interval when interest is always computed; in this scenario, it is monthly.

The EAR can be worked out as follows

EAR = ( (1+r)^m - 1 ) × 100

r- interest rate per period

m- number of periods in a year

EAR - Effective annual rate

r = 3.5%/3 = 1.167 % per month

m= number of months in a year = 12

EAR =( 1.01167^12-1)× 100 = 14.9%

The APY is 14.9%

This implies the quoted interest rate of 3.5% per quarter is the same as paying 14.9% per year

5 0
3 years ago
Donovan Company incurred the following costs while producing 500 units: Direct Materials, $10 per unit; Direct Labor, $25 per un
Natali5045456 [20]

Answer:

Net operating income= 15,000

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>In this case, there is no beginning nor ending inventory. Fixed overhead is incorporated into the cost of goods sold in full.</u>

Sales= 500*100= 50,000

COGS= (10 + 25 + 15)*500 + 10,000= (35,000)

Gross profit= 25,000

Total selling and administrative costs= (5*500) + 7,500= (10,000)

Net operating income= 15,000

8 0
3 years ago
____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to
masya89 [10]
Background checks, I would assume.
6 0
3 years ago
Basic Break-Even Calculations Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Direct materials
kati45 [8]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $24.

Unit costs are as follows:

Direct materials $4.98

Direct labor 2.10

Variable factory overhead 1.00

Variable selling and administrative expense 2.00

Total unitary variable cost= $10.08

Total fixed factory overhead= $26,500

Total fixed selling and administrative expense= $15,260.

a. Variable cost per unit= 4.98 + 2.1 + 1 + 2= $10.08

Unitary contribution margin= 24 - 10.08= $13.92

b.

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= 13.92 / 24= 0.58

Variable cost ratio= unitary variable cost / selling price

Variable cost ratio= 10.08 / 24= 0.42

<u>c. To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= (26,500 + 15,260) / 13.92

Break-even point in units= 3,000

<u>d. Finally, the contribution margin income statement:</u>

Sales= 3,000*24= 72,000

Total variable cost= 3,000*10.08= (30,240)

Contribution margin= 41,760

Total fixed factory overhead= (26,500)

Total fixed selling and administrative expense= (15,260)

Net operating income= 0

8 0
3 years ago
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