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ruslelena [56]
3 years ago
6

A municipal bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the a

uthority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements." This is a:
Business
1 answer:
Vika [28.1K]3 years ago
5 0

Answer:

Moral obligation bond

Explanation:

Moral obligation bond is defined as a revenue bond that is issued by a municipality or by some other government body.

The benefits of moral obligation bonds are tax exemption and a moral pledge that there will be no default on the bond.

Usually a reserve fund is established in case the issuing body is unable to meet its debt obligations.

In this scenario the bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements."

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Select all the banking tasks that can be done online
Aleks [24]
Can u put the multiple choice in the question?
6 0
3 years ago
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Yuliya22 [10]
Here is the correct order of investments from Lower Risk to Higher Risk: <span> Treasury bond − Diversified mutual fund – Stock

Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.

Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments

Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.

</span>
3 0
4 years ago
Lucky Louie qualified for a $250,000 mortgage for his new home. The loan application was $400, closing attorney fee $500, apprai
Vesna [10]

Answer:

Louie's total cost is $ 7,625.

Explanation:

Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. In the above question all cost mentioned in question meet defination of closing cost.\

For more info please refer to below given calculation.

Loan application = $ 400

Attorney fee = $ 500

Appraisal fee = $ 400

Title insurance = $ 1200

Doc Fee  = $ 75

Credit fee = $ 50

Fee and interest = (250000*0.02)= $ 5000

Adding all above we get $ 7,625.

7 0
3 years ago
P &amp; G Auto Parts sells parts to AAA Car Repair during 2018. P&amp;G offers rebates of 2% on purchases up to $60,000 and 3% o
nirvana33 [79]

Answer:

c. credit to Sales Revenue for $72,380.

Explanation:

Since AAA Car Repair's total purchases exceed $200,000 for the year, they are eligible for the 3% rebate on purchases above $60,000. Only the fraction of the purchase over $60,000 should get the 3% rebate, the first $60,000 get the 2% rate.

Therefore, the total sales amount recorded by P & G Auto Parts by selling $74,000 of parts to AAA is:

S=(1-0.02)*\$60 + (1-0.03)*(\$74-\$60)\\S=\$72.38

There should be a credit to Sales Revenue for $72,380.

5 0
4 years ago
A landlord charges the same apartment rent as last year, but now adds a fee for parking spaces. This practice is known as:
Natali [406]

A landlord charges the same apartment rent as last year, but now adds a fee for parking spaces. This practice is known as <u>Unbundling</u>.

<u>Explanation:</u>

Unbundling means that certain items or the services are being marketed or are being charged for. This charge is separated and is not a part of the whole package.

In the above example, the landlord charged a separate amount as the fee of the parking lot of the apartment. This was not included in the rent of the apartment. Therefore it is known to be as unbundling because it is not a part of the bundle. It is separate.

6 0
4 years ago
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