Given the four fundamental factors that affect the cost of money, only options b and d are correct.
Statement b is true:
When people invest their money, they are foregoing consumption in that current period that they are in.
They expect their invested capital to yield them interests as compensation for not spending the money earlier.
Statement d is true:
When people invest, what they look out for are risks and most importantly the returns that they would get from investing their capital.
A 10% investment return is greater than a 6% return. Because this return is higher, it would therefore attract more capital investment.
Options a and c are false.
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Answer:
Minimum Expected opportunity loss is design A = $241,500
Explanation:
Designs Revenues probability expected Revenue
A $120,000 0.3 $36,000
$255,000 0.5 $127,500
$390,000 0.2 $78,000
Total 241,500
B $130,000 0.3 $39,000
$295,000 0.5 $147,500
$460,000 0.2 $92,000
Total 278,500
C $100,000 0.3 $30,000
$300,000 0.5 $150,000
$480,000 0.2 $96,000
Total 276,000
Design A and Design C are both opportunity losses but between the two opportunity losses Design A is the minimum expected opportunity Loss.
Answer:
C
Explanation:
FDIC gives insurance to depositors. it promises to pay back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.
Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.
Answer:
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Deficit Financing. Wh ich means that government spends more money than it brings in and makes up the difference either by borrowing funds or minting more money. Deficit financing can happen for a lot of reason and not only due to war or social programs.