Answer:
The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.
- The first C is character, it can be known by the previous loans of the applicant.
- Debt to income ratio is the second C.
- The third C is capital, it is the amount of money possessed by an applicant.
- Collateral is the fourth C, it is the asset that can be used to back the loan.
- The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.
Answer:
The correct answer is (B) Buy euro at $1.50/€, buy £ at €1.25/£, sell £ at $2/£
Explanation:
The dollar- euro exchange rate is quoted as $1.50 = €1.00
the dollar-pound exchange rate is quoted at $2.00 = £1.00
To calculate the actual cross rate we use; S(euro divided by pounds) = S(dollar/pounds) ÷ S(dollar/euro).
Using symbols to denote this, we have S(€/£) = S($/£) / S($/€)
S(€/£) = S(2/1) ÷ S(1.50/1)
= (2 / 1.5)
= €1.33.
Consequently, from this result we now know that the euro is undervalued with respect to pounds under the cross rate being offered by the bank. This implies that you should first buy the euro, convert to pounds, and eventually convert back to dollars, this would enable you make money as an investor.
<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Answer:
B. To plan production, marketing, and budgets
Explanation:
A company needs to know accurately the demand for a good or service because it has to determine what kind of customer it is and plan the marketing accordingly. Additionally, that information will be valuable in planning plan its production volume. And afterward, with that information in hands, knowing fixed and varied costs, marketing costs and others, plan the budget accordingly. Pricing, fixed costs, demand slope, and potential sales will be determined by other factors that can include but are not limited to demand estimation.
Answer:
This is a typical super-protective parenting style. In my opinion this parent´s behavior is not positive and is out of use. Nowadays parents try to talk more, explain dangerous to teens and give them some freedom to have a good time with friends.
Explanation:
