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serg [7]
3 years ago
5

Suppose Cho comes into a large sum of money and decides to lend it out to

Business
1 answer:
Ierofanga [76]3 years ago
8 0

Answer:

C. Adverse selection.

Explanation:

Adverse selection occurs when the participants in a economic transaction do not have the same amount of information about each other: either the buyer has more information than the seller, or the seller has more information than the buyer.

In the question, we have an example of adverse selection because Cho does not have enough information about the buyers (the borrowers), and she does not have a good way to obtain that information.

For that reason, she decides to give the money to the bank, an institution with much more capacity and information about the borrowers. Like this, she is solving the problem of adverse selection.

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C. Credit to Accounts Payable
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Estimates of current rates of extinction:_____________
NemiM [27]

It is to be noted that the current rates of extinction as relates to certain animals and plants species show the rates to be higher than the mass extinctions at the end of the Cretaceous Period.

<h3>What is the rate of extinction?</h3>

Rates of extinction simply refer to how quickly species are becoming non-existent.

The rates are said to be on the average of 100 E/MSY. In 2020 for instance about 15 species (according to IUC) were declared extinct.

E/MSY is Extinctions per Million Species-Years. The correct answer, thus, is C.

See the link below for more about rates of extinction:

brainly.com/question/17525293

7 0
2 years ago
Provide an explanation of how his/her life will change economically, socially, and politically in a centrally planned economy.
galben [10]

Answer:spazz

Explanation:

spazz

4 0
2 years ago
Your client invested $10,000 in an interest-bearing promissory note earning an 11% annual rate of interest, compounded monthly.
REY [17]

Answer:

The correct answer is $21,522.04.

Explanation:

According to the scenario, the given data are as follows:

Present value = $10,000

Rate of interest  = 11%

Rate of interest (r) ( compounded monthly) = 11% ÷ 12 = 0.00916

time period  = 7 years

Time period ( compounded monthly) (t) = 7 × 12 = 84

So, we can calculate the future value by using following method:

FV = PV × ( 1 + r)^t

By putting the value, we get,

FV = $10,000 × ( 1 + 0.00916)^84

FV = $21,522.04

7 0
3 years ago
Which one of the following represents the minimum rate of return a firm must earn on its assets if it is to maintain the current
FinnZ [79.3K]

Answer:

B. Weighted average cost of capital

Explanation:

The Weighted average cost of capital is abbreviated as the WACC. It is the weighted average of cost of common equity, cost of preferred equity and aftertax cost of debt. For a company to have a breakeven in returns, they need to earn a minimum rate of return on its assets which is equivalent to the weighted average cost of capital(WACC) making choice B correct.

5 0
3 years ago
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