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3 years ago

How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank?

Business

1 answer:

Alecsey [184]3 years ago

4 0

Answer:

A bank acts like an intermediary between depositors and creditors. If the market interest rates increase, gross interest income will rise, but all gross interest expense. They will charge higher rates to borrowers, but also must pay higher rates to depositors. The spread probably remains unchanged because both sides increased.

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Assuming that the prices of A and B are $1.50 and $1, respectively, and that Mr. Chen has $24 to spend, plot his budget line and

Margarita [4]

Answer:

consume 8 units of A and 12 units of B

Explanation:

given data

prices of A = $1.50

prices of B = $1

Budget constraint = $24

consider data indifference curve

unit A unit B

16 6

12 8

8 12

4 24

solution

As graph, Mr. Chen will buy 8A and 12 B goods.

so Budget constraint is here express as

24 = 8 × $1.50 + 12 × 1.00

so here

MRS = $\frac{PB}{PA}$ rule of equilibrium

so here MRS is

MRS = $\frac{8}{12}$

$\frac{PB}{PA}$ = $\frac{1.00}{1.50}$ = $\frac{2}{3}$

MRS = $\frac{PB}{PA}$ = $\frac{2}{3}$

7 0

3 years ago

Remember, a bond’s coupon rate partially determines the interest-based return that a bond (might/will)...........pay, and a bond

prohojiy [21]

Answer:

<u>will</u>, <u>would like </u>

Explanation:

Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.

The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.

Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.

When coupon rate of payment is higher than YTM, such bonds are priced at a premium.

3 0

3 years ago

An organization that has all its people in one location is typically ________ than an organization that is dispersed around the

Vera_Pavlovna [14]

Answer:

less spatially complex is the answer.

7 0

1 year ago

Metcalf Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Metcal

tresset_1 [31]

Answer:

the lease asset is $723,943

Explanation:

The computation of the lease asset is shown below;

= (Lease payment - per year maintenance charges) × present value of an annuity due of 1 for six years at 8%

= ($170,000 - $25,000) × 4.99271

= $145,000 × 4.99271

= $723,943

hence, the lease asset is $723,943

The same would be considered

4 0

3 years ago

A study was done of all homicide convictions in the State of Florida between 1976 and 1980 in order to examine if the applicatio

saw5 [17]

Answer and Explanation:

This is an example of Simpson’s paradox

8 0

3 years ago