1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-fr
inna [77]

Answer:

SO expected return on Mkt Portfolio Rm = 10.75%

Explanation:

market degree of risk aversion A = 3

Var = 0.0225 = SD^2

Rf = 4%

What is expected return on Mkt Portfolio ie Rm??

According to CAPM, Rm-Rf = A*SD^2

where SD is Std Dev (Recall SD^2 = Variance)

A is market degree of risk aversion

So we have Rm-4% = 3*0.0225

ie Rm = 4% + 3*0.0225 = 10.75%

SO expected return on Mkt Portfolio Rm = 10.75%

3 0
3 years ago
Fatima finds an article on march 16, 2014 titled "benefits of laptops" on the technologynow website. the article was written on
Dmitriy789 [7]

In citing the source in MLA format, Fatima should place the title as the first to be read or written, followed by the author and citation in the end. So it should be, “Benefits of Laptops” by Michael Gray. Technology Now, August 2, 2013. Web. March 16, 2014.

4 0
3 years ago
Read 2 more answers
A semi-annual coupon bond has MacD of 26.7 years, yield-to-maturity of 4.2%, and price of $1189.29. What is its DV01? Answer in
Drupady [299]

Answer:

92+

Explanation:

3 0
3 years ago
___________ attempts to increase task efficiency by breaking down jobs into simple steps and assigning people to each of those s
SpyIntel [72]

Answer:

A) Job simplification.

Explanation:

Job simplification makes it easy to complete the whole task by dividing it into small steps. Basically this can improve productivity and efficiency.

For instance: A whole task was done by a single employee and it took him a day to complete it, through Job simplification task would be divided into steps and those sub tasks would be assigned to different employee's with a deadline to complete it in 6 hours, much less than the formal employee took.

8 0
3 years ago
Read 2 more answers
In​ March, 2006 the labor department of the country of Jobland determined that the size of the labor force was 100 million out o
Lubov Fominskaja [6]

Answer:

a). Unemployment rate in March=8%

b). Unemployment rate in April=9.4%

Explanation:

a).

The unemployment rate can be expressed as;

R=P/L

where;

R=unemployment rate

P=number of unemployed persons

L=labor force

In our case;

R=unknown

P=number of unemployed persons=labor force-number of employed persons

P=100-92=8 million

L=100 million

replacing;

R=8/100=0.08×100=8%

The unemployment rate in March=8%

b).Unemployment rate for April

Unemployment rate={(total unemployed+discouraged workers)/(labor force+discouraged workers)}×100

total unemployed=8 million

discouraged workers=1.5 million

labor force=100 million

replacing;

Unemployment rate=(8+1.5)/(100+1.5)=(9.5/101.5)×100=9.4%

Unemployment rate in April=9.4%

6 0
3 years ago
Other questions:
  • Anders is researching sociocultural factors related to his employer, a sporting goods manufacturer.Which of the following would
    14·1 answer
  • Read the following stock quote. How much is this stock worth?
    5·2 answers
  • _________ is the name of a free-market economic system in which most of the factors of production and distribution - such as lan
    8·2 answers
  • Waterway Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
    6·1 answer
  • During the maturity stage of the product life cycle, profit declines primarily because: Multiple Choice a) there is fierce price
    8·1 answer
  • What is a buying plan and why is it important?
    10·1 answer
  • Part of having ______ means understanding that businesspeople from other countries may have very different attitudes about punct
    15·1 answer
  • Laura, a sales manager at Dexter Inc., claims that labor and management are rivals for most organizations. Brooke, the HR manage
    5·1 answer
  • What conclusion can be drawn about an organization that does not conduct market research?
    10·1 answer
  • Which of the following examples describes how data science can improve<br> business outcomes?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!