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Lapatulllka [165]
2 years ago
13

Suppose a company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk. To acc

omplish that objective, which of the following must the company do?
a. The duration of its liabilities must be longer than the duration of its assets.
b. The duration of its liabilities must equal the duration of its assets.
c. The duration of its liabilities must be shorter than the duration of its assets.
Business
1 answer:
Andreas93 [3]2 years ago
7 0

Answer: b. The duration of its liabilities must equal the duration of its assets

Explanation:

Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.

It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.

When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.

Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.

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In a repeated​ game, deterring entry A. is not a rational strategy if money is lost fighting the first potential entrant. B. can
sertanlavr [38]

Answer:

D. May require losing money fighting the first potential entrant.

Explanation:

In this form of gaming, or in this game theory, it is said to be played over and over and could possible be in a probability form that is why that possibly, as a player, you may require loosing money fighting the first potential entrant.

Fighting the first entrant, possibility of cooperating means that their could be a possible compromise in order to carry on accepting a payoff over a certain period of time, knowing that if we do not uphold our end of the deal, our opponent may decide not to either.

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3 years ago
Minors are liable for the reasonable value of the necessary:______.
kotegsom [21]

Answer:

b. that they agreed to purchase.

Explanation:

A minor is a person who is under the age of 18 and unable to make decision on his own such as mentally impaired or incompetent persons .

A minor cannot enter a contract like adults but if under any circumstance they enter into a contract of sale purchase of daily goods like clothing etc, they are liable to pay the price which they agreed to pay.

Their parents are liable only if the contract was made according to the parent's will etc.

If the minor is unable to pay the agreed amount then the minor should return the goods or fulfill any other liability as imposed by the court of law.

8 0
2 years ago
1.05 the market place economic
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A market economy serves as an  economic system in which economic activities is been controlled by individuals.

<h3>What is market economy?</h3>

market economy serves as the economy that that gives country's individual citizens and businesses to be able to make decisions .

This decision could be  pricing of goods and services  which are been controlled  by the interactions of a country's individual citizens.

COMPLETE QUESTION:

Explain market place economy

Learn more about market economy at:

brainly.com/question/11471834

#SPJ1

8 0
2 years ago
If a price is ______ the buyer's reservation price and ______ the seller's reservation price, then the price is in the bargainin
zimovet [89]

Answer:

Here's ur answer

Explanation:

option ( a ) Above // Below

If it's useful mark me as brainlist

3 0
2 years ago
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11. Effective communication with patients and co-workers is an important skill for practice managers. Describe what you will do
kolbaska11 [484]

Answer:

The dos and donts in excersing active listening

Explanation:

Active listening helps someone understand what the party is trying to say, even if the message is unclear or ambiguous.  As a practice manager, the following actions will enhance or undermine active listening.

<u>The Do's</u>

  1. Nod in agreement
  2. Maintain eye contact
  3. Offer positive reinforcement with phrases such as 'yes,' ' great' or 'indeed.'
  4. Positive body posture such as facing the speaker and smiling
  5. Ask relevant questions
  6. Seek clarification

<u>The Don't s</u>

  1. Avoid noise: switch off audio devices such as radio, computers while listening.
  2. Do not interrupt or cut off the speaker.
  3. Avoid receiver biases. Keep an open mind, and don't judge the speaker's message before its communicated.
  4. Avoid listener's appreciation: Don't fear that you might not understand the speaker's message.
  5. Keep off distractions such as picking phone calls and reading.

3 0
3 years ago
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