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exis [7]
3 years ago
6

A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which

problem banks face in lending?
a.adverse selection
b.moral hazard
c.interest rate
d.risk liquidity.
Business
1 answer:
Kruka [31]3 years ago
8 0

Answer:

b.moral hazard

Explanation:

If a person borrow from bank to buy car but actually he borrow to pay lottery. in this case the person will face Moral Hazards.

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If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the ent
Firlakuza [10]

Answer:

d.No effect on the expenses of the current period.

Explanation:

In the case when the credit balance of the allowance for doubtful debt more than the bad debt amount i.e. written off

So the entry for writing off against the allowance would result in no effect on the expense for the present period

As the bad debt expense is debited and the allowance for doubtful debt would be credited therefore the option d is correct

4 0
3 years ago
Cost-push inflation will reduce supply and lower real output and employment which will eventually generate an economic _____ qui
monitta

Cost-push inflation will reduce supply and lower real output and employment which will eventually generate an "economic recession".

<h3>What is economic recession?</h3>

The National Bureau of Economic Research (NBER) describes a recession as "a large fall in economic activity distributed across the economy, lasting more than a few months."

Some characteristics of economic recession are-

  • Recessions are marked drops in economic activity that can endure for several months or even years.
  • When a country's economy faces negative gross domestic product (GDP), growing unemployment, declining retail sales, and contraction income and manufacturing metrics over an extended period of time, experts declare a recession.
  • Recessions are regarded as an inevitable component of the economic cycle, or the predictable rhythm of expansion and recession in a country's economy.
  • The organisation bases its decision on a variety of variables, such as GDP, real income, employment, industrial production, and consumer spending.

To know more about economic recession, here

brainly.com/question/1417711

#SPJ4

8 0
1 year ago
Business what kind education do you need
stich3 [128]
Basic or elementary business education
3 0
3 years ago
An oral auction has bidders willing to pay $4, $6, $9, $12, $13, and $15 for an item. The winning bidder will pay a little more
Fiesta28 [93]

Answer: $13.25

Explanation:

From the question, we are informed that an oral auction has bidders willing to pay $4, $6, $9, $12, $13, and $15 for an item.

Based on the above scenario, the winning bidder will pay a little more than $13 or $13.25. This is because the bidder with the highest pay is willing to pay $15 but since the next person is willing to pay $13, that means the next bidder will price it at an amount that is a little bit above $13 which is $13.25.

5 0
3 years ago
A customer wishes to place a buy order for a security that has not been registered with the SEC. The security may be purchased i
cupoosta [38]

Complete Question:

A customer wishes to place a buy order for a security that has not been registered with the SEC. The purchase order can be filled if the security:

A. is exempt from SEC registration

B. is traded by at least 2 market makers

C. has been trading in the market for at least 1 year

D. is sold to professional investors

Answer:

Is exempt from SEC registration

Explanation:

The Securities and Exchange Commission (SEC) is a regulatory agency that is saddled with the responsibility of regulating the capital market and ensuring investors are well protected by making sure standard rules are followed.

If a customer wishes to place a buy order for a security that has not been registered with the Securities and Exchange Commission (SEC). The security may be purchased if the security is exempt from SEC registration.

By standard, the SEC states and implore investors to purchase only securities that are registered with the securities and exchange commission (SEC) or only when an exemption is made available. If securities have been trading for about a year or is being traded by a minimum of two companies, no exemption would be given by the SEC.  

Also, there isn't any exemption for securities that is sold only to professional investors.

However, investors can purchase municipal and government securities even without it being registered with the securities and exchange commission.

<em>In a nutshell, the customer can only purchase a security that has not been registered only if it is exempted from SEC registration. </em>

3 0
3 years ago
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