Answer:
The correct answer is letter "A": The convenience yield is always positive or zero.
Explanation:
The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.
<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>
Answer:
The short run refers to a period of less than one year.
Explanation:
The statements is false that the short run refers to a period of less than one year.
The short run, long run and very long run are different time periods in economics.
<u>Short run – where one factor of production (e.g. capital) is fixed</u>.
long run – Where all factors of production are variable,
Unlike in accounting where operating period refer to a period of one year, <u> there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.</u>
Answer:
C) Lease payments for office space
Explanation:
The fixed cost is the cost that remains fixed whether the production level changes or not
So as per the given choices, the option c would be selected i.e. lease payment made for office space as it would be independent with respect to the quantity generated also it would be paid even there is no production take place
Therefore the option c is correct
Answer:
77.27% or
(17/22)%
The loan will accepted
Explanation:
property value 550,000
haircut 125,000
550,000 - 125,00 = 425,000 mortage value
425,000/550,000 = 77.27% = (17/22)%
The ratio is below the cutoff, so it is within the boundaries the lender expect. The loan will be given.
