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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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everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w
posledela

Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.

When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

To know more about the municipal bond visit here :

brainly.com/question/23962246

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6 0
1 year ago
Raby, Inc. acquires all of the outstanding stock of Fletcher Corporation on January 1, 2017. At that date, Fletcher owns only th
Nina [5.8K]

Answer:

D. $285,000

Explanation:

When a company is acquired by another company, the parent company (the new owner) must report the assets at fair market value - amortization.

FV = $300,000

amortizable value = $100,000

depreciation for 3 years (2017, 2018 and 2019) = ($100,000 / 20) x 3 = 415,000

reported value = $300,000 - $15,000 = $285,000

6 0
3 years ago
Most organizations spend more time and money on the systems ________ phase than on any of the other phases. Group of answer choi
mariarad [96]

Answer:

maintenance phase

Explanation:

Maintenance phase -

It refers to the phase of making the changes in the software , hardware and documentation to improve the operations effectively , is referred to as the maintenance phase .

The phase is important , as it enhances the efficiency and corrects the problem .

The company or the organisation tries to invest the maximum amount in the maintenance phase .

Hence , from the given statement of the question,

The correct option is maintenance phase .

6 0
3 years ago
Company AA and Company BB have identical Assets, Revenues and Ebit. They are in the same line of business. Company AA has a Debt
saveliy_v [14]

Answer:  BB

Explanation:

Because the credit help the company BB to run over and to make monney.

7 0
3 years ago
Assume Zap industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,690,200 $
Scrat [10]

Answer:

amount of Bad Debt Expense for 2019 = $92,000

Explanation:

A bad debt expense is a uncollectible receivable amount incurred on a credit sale to a customer, who is no longer able to pay the debt, due to bankruptcy or other financial problems. Companies make provision for these kind of credit losses in the allowance for doubtful accounts, and hence records the amount used from the allowance for doubtful accounts as the bad debt expense.

In our example, the allowance for doubtful account for 2019 is $92,000, hence since it was used to settle part of the credit losses, this becomes the bad debt expense.

3 0
3 years ago
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