Making a profit by lending money is ____________. a. capital c. usury b. barter

If there is a surplus in the market for loanable funds, the resulting change in the real interest rate a. raises the quantity of

Arlecino [84]

Answer:

The correct answer is option b.

Explanation:

A surplus in the market for loanable funds is likely to cause a fall in the interest rate. At lower interest rate, people who need credit will demand more loanable funds. While the suppliers will provide less funds. So, the demand of loanable funds will increase and the supply will decrease.

This process will continue till excess demand will cause the interest rate to rise. The initial equilibrium will be restored eventually.

7 0

3 years ago

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of .75%. Economy Fund charges a front-end load of 2%, bu

Rom4ik [11]

Answer:

a. The amount in Loaded-UP Fund will grow to $104.25 after 1 year, while the amount in the Economy Fund will grow to $103.64 after 1 year.

b. The amount in Loaded-UP Fund will grow to $113.30 after 3 years, while the amount in the Economy Fund will grow to $115.90 after 3 years.

c. The amount in Loaded-UP Fund will grow to $151.62 after 10 years, while the amount in the Economy Fund will grow to $171.41 after 10 years.

Explanation:

The following are the relevant formulae to use:

Amount available in Loaded-UP Fund after a certain year = Investment * (1 + Rate of return – 12b-1 fee – Expense ratio)^Number of years ……………….. (1)

Amount available in Economy Fund after a certain year = Investment * (1 – Front-end load) * (1 + Rate of return – Expense ratio)^Number of years ……………….. (2)

Assuming investment is equal to $100 and using equations (1) and (2), we have:

a. 1 year?

Amount available in Loaded-UP Fund after 3 years = $100 * (1 + 6% - 1% - 0.75%)^1 = $104.25

Amount available in Economy Fund after 3 years = $100 * (1 - 2%) * (1 + 6% - 0.25%)^1 = $103.64

Therefore, the amount in Loaded-UP Fund will grow to $104.25 after 1 year, while the amount in the Economy Fund will grow to $103.64 after 1 year.

b. 3 years?

Amount available in Loaded-UP Fund after 3 years = $100 * (1 + 6% - 1% - 0.75%)^3 = $113.30

Amount available in Economy Fund after 3 years = $100 * (1 - 2%) * (1 + 6% - 0.25%)^3 = $115.90

Therefore, the amount in Loaded-UP Fund will grow to $113.30 after 3 years, while the amount in the Economy Fund will grow to $115.90 after 3 years.

c. 10 years?

Amount available in Loaded-UP Fund after 3 years = $100 * (1 + 6% - 1% - 0.75%)^10 = $151.62

Amount available in Economy Fund after 3 years = $100 * (1 - 2%) * (1 + 6% - 0.25%)^10 = $171.41

Therefore, the amount in Loaded-UP Fund will grow to $151.62 after 10 years, while the amount in the Economy Fund will grow to $171.41 after 10 years.

7 0

2 years ago

A(n) _____ is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during

Tcecarenko [31]

The correct answer is: Subsidized Loans
Hope this helped!

8 0

3 years ago

Identify the start and end events and the activities in the following narrative, and then draw the business process model using

Ganezh [65]

Please find the graph file in the attachment and find its complete solution.

A cup of coffee and drinking at Star Bucks is the process selected here, the customer, the cashier, and the barista are the actors in this scenario.
This process begins if the client enters the barista and commands ventilated coffee and Blueberry muffins.
The barista then registered in the cash register the order, the customer then drove to the window, filled the barista with a cafe called Venti cup of coffee, put the lid in it, and took the blue bear muffin out of the pastry, and put it in a bag.
Barista gave the customer the bag with coffee and pastry, in this, the customer had the option of paying the gift by cash, credit, or star bucks.
The gift card payment customer with the barista registered the payout and sent the card to a customer together with receiving it.

Learn more:

brainly.com/question/15185517

7 0

2 years ago

To estimate the value of a nonconstant growth stock, we can estimate the value of each dividend during the period of nonconstant

garri49 [273]

Answer:

The correct answer is True.

Explanation:

The Gordon growth model is a method of valuing a company's share price, using constant growth and discounting the value of future dividends today. Gordon Growth is often known by its English name.

It is a dividend discount model that assumes that the growths that the company will experience are constant. It is based on the theory that the price of a share should be equal to the price of the dividends that the company is going to pay, discounted to its net present value.

If the share price in the market is less than the result obtained by the discounted dividend model, the share is undervalued and therefore, it is recommended to buy. If, on the other hand, the market price is higher than that of the model, it is understood that the share price is too high.

3 0

3 years ago