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Leni [432]
3 years ago
7

Why do some lenders require borrowers to secure credit

Business
1 answer:
joja [24]3 years ago
4 0

<u>Complete Question:</u>

Why do some lenders require borrowers to secure credit?

A. To prevent defaults

B. To guarantee full repayment

C. To avoid any losses

D. To reduce risk

Answer:

Option D. To reduce risk

Explanation:

The reason is that the lender faces the credit risk which is the risk of the loss of the repayment in whole or in parts and the risk of default of the interest payments by the borrower.

So if we see the options, the option A, B and C are basically the credit risk that the lender is facing so the only option that is more general (not specific as the option A, B and C) and includes these three options is option D.

So the option D is correct.

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George had a previous balance on his credit card of $330.19 on which he paid $50.00. He was assessed a finance charge of $4.20.
STALIN [3.7K]
The answer is $284.39.
6 0
3 years ago
Read 2 more answers
What are some of the troubles that could occur in the economy if inflation rate got as high as 8% or 10% per year?
andrezito [222]

Answer:

Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:

1) Foreign investors will avoid the country.

2) Money losses value very fast causing an increase in the prices of goods and services.

3) The economy becomes unstable making the the government leaders to loose credibility.

Explanation:

The type of inflation that gets as high as 8% or 10% is called Galloping inflation.

Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:

1) Foreign investors will avoid the country.

2) Money losses value very fast causing an increase in the prices of goods and services.

3) The economy becomes unstable making the the government leaders to loose credibility.

4 0
3 years ago
A fillorkill order will be A. will be cancelled at the end of the trading day if not executed by that time. B. executed immediat
katen-ka-za [31]

Answer:

D) will be cancelled if not immediately executed at the stated price or better.

Explanation:

A Fill-Or-Kill order can be regarded as

an order that is been made in order

to buy/sell a stock and it must be executed in entirety and immediately. If not executed immediately the order might be cancelled since partial Execution is not part of the process of Fill-Or-Kill order. It should be noted that A fillorkill order will be cancelled if not immediately executed at the stated price or better.

4 0
2 years ago
The claim that the high school drop-out rate has increased because more women have taken jobs in the workplace would be an examp
FinnZ [79.3K]

Claims that drop-out rate has increased because more women have taken jobs in the workplace is an example of false cause fallacy.

A false cause fallacy is said to occur in a statement because the link between the premises and conclusion does not even exist.

Here, phrase one is "high school drop-out rate has increased" and phrase two is <em>"because </em><em>more women </em><em>have </em><em>taken jobs </em><em>in the workplace"</em>

<em />

If we assess the two phrase, we will observe that their is no link between the statement to facilitate a valid conclusion because when woman taking jobs in workplaces can not result to increase in drop rate in high school.

Therefore, it is an example of false cause fallacy.

Read more about this here

<em>brainly.com/question/6987057</em>

3 0
3 years ago
, suppose the book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zer
vlada-n [284]

Answer: See explanation

Explanation:

a. The company's total book value of debt will be:

= Value of debt + Value of zero coupon bonds

= $70 million + $100 million

= $170 million

b. The market value will be:

= Quoted price × Par value

= ($70 × 1.08) + ($100 × 0.61)

= $75.6 + $61

= $136.6 million

c. The aftertax cost of debt will be:

= (1 - Tax rate) × Pre tax cost of debt

= (1 - 35%) × 5.7%

= 65% × 5.7%

= 3.7%

5 0
3 years ago
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