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Viefleur [7K]
3 years ago
7

A borrower obtains a one-year ARM which starts at 4.0% and has a margin of 3.0% and 2/6 caps. At the end of the first year, the

index is 5.0%. What is the interest rate after the first adjustment
Business
1 answer:
liq [111]3 years ago
5 0

Answer:

The answer is "6".

Explanation:

In the given question the response is 6 because the new rate is the lower of the index + margin (in that case 5 + 3 = 8) whenever the interest rate changes as well as the current rate + cap (in that instance the value 4 + 2 = 6). Its rate of interest would also be 6 percent after the very first adjustment.

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The existence of the federal income tax and the welfare system serve as the primary elements of?
NARA [144]

The answer is nondiscretionary fiscal policy.

Nondiscretionary fiscal policy refers to measures that are incorporated into the system to automatically provide expansionary or contractionary stimulus. Nondiscretionary fiscal policy, for example, entails government measures that stimulate the economy when it needs it and deflate it when it needs it.

Nondiscretionary fiscal policy refers to numerous continuing government spending and taxing schemes. These are largely for the purpose of sustaining revenue. They are almost never modified. They consist of social security, welfare, and unemployment benefits.

Unemployment benefits are a common example of nondiscretionary fiscal policy. Payments must rise when the number of jobless rises, which occurs during an economic slowdown. When the jobless return to work as the economy improves, the payments must fall.

Therefore, the answer is non-discretionary fiscal policy.

To know more about fiscal policy click here:

brainly.com/question/6583917

#SPJ4

8 0
2 years ago
Which one of the following is not true when the economy is in macroeconomic​ equilibrium? A. When the economy is at​ long-run eq
uranmaximum [27]

Answer:

The correct answer to the following question will be Option C.

Explanation:

  • Throughout the macroeconomic equilibrium, the aggregate supply curve becomes equivalent to something like the supply curve, the real GDP seems to be comparable to potential Output (GDP), however, if frictional as well as systemic unemployment seems to be the maximum total poverty throughout the longer term.
  • Consequently, whenever the economy seems to be in macroeconomic equilibrium, the argument which is not accurate would be that the businesses would have excess power.

So that Option C is the right answer.

6 0
3 years ago
Which of the following buys products in foreign markets and then sells them for resale in its home country?
julsineya [31]

Answer:importer

Explanation:

7 0
4 years ago
Shatin Intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total dividend of $20 million each
Zanzabum

Answer:

23.07 per share

Explanation:

\frac{divends}{return-growth} = Intrinsic \: Value

We will caltulate like the gordon model, but in this case growth= 0 and we are going to include the 10 millions stock repurchase in the dividend part of the equation.

Stock price= (future value of total dividends + repurchasing of stocks)/equity cost of capital)

(20 + 10)/0.13 = 230.77 MILLIONS

Then we divide by the number of shares:

230.77 MILLIONS/ 10 MILLIONS = 23.07 per share

3 0
3 years ago
Increased interest in cultural diversity can be attributed to all of the following except __________.
Igoryamba
Increased interests in cultural diversity can be attributed to personal travel, advances in communication and international trade, except natural selection. Cultural diversity refers to having a respect to different cultures and natural selections is not part of this.
7 0
4 years ago
Read 2 more answers
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