1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
abruzzese [7]
3 years ago
11

Which of the following is a common risk of using credit to make purchases

Business
1 answer:
DochEvi [55]3 years ago
6 0

Answer:

overspending

Explanation:

Credit purchases encourage one to spend more than they can afford. The fact that the sellers do not demand cash when goods change hands entices people to buy more. In credit purchases, cash is not required, only a commitment to pay later, which leads to overspending.

Overspending increases the probability of defaulting on credit payments. When the debt to income level rises too much, the borrower may be forced to miss some installment payments and cater to basic needs.

You might be interested in
Lawrence got a car loan from a bank, with the car as collateral. What kind of loan did he get?
Vinvika [58]
A. a secured loan.....
3 0
4 years ago
Alfred, a trader at the New York Stock Exchange (NYSE), executes the decisions made by investors and takes action based on reque
densk [106]

Answer:

Capital Market

Explanation:

Capital markets are the financial markets which deal in bonds, stock, mutual funds and various other long term investments. Alfred is a trader who works at a capital market because that is the market where decisions are made by the investors and traders work accordingly. Moreover, traders in the capital market alter the decisions and make new ones based on the request of buyers and sellers.

8 0
3 years ago
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate o
Bess [88]

Answer:

r = 0.235 or 23.5%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market return

r = 0.06 + 2.5 * 0.07

r = 0.235 or 23.5%

3 0
3 years ago
Rolando, a senior employee, has been asked to monitor the activities of some new employees and report to her if he finds them en
vazorg [7]

Answer:

Explanation:

From the question we are informed about Rolando, who is a senior employee, has been asked to monitor the activities of some new employees and report to her if he finds them engaged in activities that are not work related. He finds them spending far too much time on social networking sites. However, instead of reporting this, he advises the new employees to refrain from using those sites in the future. Moreover, he tells Alexa that they were doing their work effectively. In this scenario, Rolando has engaged in Filtering.

Filtering can be regarded as distortion as well as withholding of information so that reactions of a person or entity can be managed. It can be explained as process whereby some information is been hide to higher rank workers by

employee, whereby this is done so that

employees that committed a fault is not affected. Filtering serves as an act that middle-range workers can take to give

enough confidence to their surbodinates so that they can correct themselves which is alternative of punishing them.

6 0
3 years ago
Which combination of factors would result in the lowest monthly mortgage payment?
Anit [1.1K]
The choices can be found elsewhere and as follows:

<span>A.) Big down payment,a longer term loan, and a low interest rate
B.) <span>Big down payment, a shorter term loan, and high interest rate
C.) </span><span>Small down payment, a shorter term loan, and high interest rate
D.) </span><span>Small down payment, a shorter term loan, and small interest rate

I think the correct answer is option A. It would be </span></span>Big down payment,a longer term loan, and a low interest rate that would result <span> in the lowest monthly mortgage payment. Hope this answers the question.</span>
8 0
3 years ago
Other questions:
  • Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2011. The note, along with interest at 6%, is
    15·1 answer
  • Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 unit
    13·1 answer
  • Laura understands the reasons her boss assigned other team members to the better projects but thinks the way he told her about i
    9·1 answer
  • Your friends know that you understand a lot about computers, both the technical details of how they operate as well as informati
    10·1 answer
  • Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was
    8·1 answer
  • When a person is authorized by the principal to transact all affairs in connection with a particular type of business or trade o
    8·1 answer
  • What is gained by using the circular flow diagram to illustrate gdp
    11·1 answer
  • 1. Assume the value of a market basket for a given year is $550 and the same basket in the base year was $500. Calculate the CPI
    15·1 answer
  • Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are allowed to put out as many cans as
    15·1 answer
  • When Ian experiences diminishing marginal utility when buying shirts,
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!