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andrezito [222]
3 years ago
11

Which one of the following statements is false concerning the term structure of interest rates? A. Expectations of lower inflati

on rates in the future tend to lower the slope of the term structure of interest rates. B. The term structure of interest rates includes both an inflation premium and an interest rate risk premium. C. The term structure of interest rates and the time to maturity are always positively related. D. The real rates of return can influence the slope of the term structure of interest rates. E. The interest rate risk premium increases as the time to maturity increases.
Business
1 answer:
UNO [17]3 years ago
5 0

Answer:

C- The term structure of interest rates and the time to maturity are always directly related

Explanation:

The term structure of interest rates represents the relationship that exist between interest rates and different terms (maturities). When it is graphed, the term structure receive the name of "yield curve".

Generally, yields increase at the same time maturity does it, this create an upward-sloping yield curve or a normal yield curve. But occasionally, long term yield can fall below short term yields, and this create an inverted yield curve that is regarded as it a recession is likely occurring or approaching.

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Management is considering replacing its blending equipment. The annual costs of operating the old equipment are $250,000. The an
e-lub [12.9K]

Answer:

$250,000

Explanation:

Since the purchase cost of an old equipment is already incurred and it does not have any kind of impact in decision making so this cost would be considered as the sunk cost i.e. $250,000

The operating cost of old & new equipment would be relevant for calculating the annual cost savings and the current selling value of the old equipment would also be relevant as salvage value

Therefore $250,000 would be considered  

5 0
3 years ago
Covenants represent:
gregori [183]

Answer:

the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment

Explanation:

covenants help lenders detect deteriorating loan quality.

8 0
3 years ago
Why would you want to limit your borrowing when making economic decisions ?
Yanka [14]

Answer:

so they can end up spending less on interest payments and credit card fees.

Explanation:

4 0
3 years ago
The percent change in multifactor productivity if Fok can reduce the energy bill by ​$1,000 per day without cutting production o
marishachu [46]

Answer:

The answer is "2.45%".

Explanation:

The answer of option c:

Reduce power by 950 dollars:

In this question it will need to once again take the latest energy cost for analytical hierarchical productivity.  

→ Total Input  = 400 \times  12+21000 \times 1 +(5000-950)+10000

                     = 4800 +21000 + (4050)+10000  \\\\                       = 25800+4050+10000 \\\\                       = 39850\\

Consumer rates  = \frac{1,000}{39,850}

                            =0.0250

Initial efficiency multi-factor= 0.0245

\to \text{percentage  changes} = \frac{\text{New Multi Factor Productivity - Previous Multi-Factor Productivity}}{\text{Originbal Multi-Factor Productivity}}  

                                   = \frac{(0.02450.0251)}{0.0245}\\\\ = 2.45 \ \  \%

3 0
3 years ago
"Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par of $1 per share, of which 500,000 shares are outst
hram777 [196]

Answer:

Debit : Dividends $50,000

Credit : Cash $50,000

Explanation:

Dividend calculation = 500,000 shares x $1 x 1/10 = $50,000

To record the dividend, the following entry is made :

Debit : Dividends $50,000

Credit : Cash $50,000

8 0
3 years ago
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