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2 years ago

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Business

2 answers:

Alik [6]2 years ago

9 0

Correct Answer is Option C - It has no impact because a fixed-rate mortgage cannot change.

Economic Downturn is the general slowdown in the economy over the period of time. During economic downturn, there is less demand for money and as a result there is fall in the price of credit. But in case of fixed rate mortgage the rate is always fixed irrespective of the economic scenario.

So, economic downturn has no impact on borrowers fixed rate mortgage because a fixed-rate mortgage cannot change.

rosijanka [135]2 years ago

7 0

Answer: C

Explanation: trust;)

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Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflatio

strojnjashka [21]

Answer: c) Both economies grew at the same rate

Explanation:

The faster growing economy would be the one that saw a greater increase in Real GDP than the other.

Real GDP growth = Nominal GDP growth - Inflation growth.

Hyperpolis Real GDP growth = 15% - 12%

Hyperpolis Real GDP growth = 3%

Superpolis Real GDP growth = 6% - 3%

Superpolis Real GDP growth = 3%

<em>Both countries grew at the same rate of 3%. </em>

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2 years ago

What is the most important reason financial information is provided by the major regulatory agencies to investors, depositors, a

sergij07 [2.7K]

Answer:

d. to make informed decisions about Banks and their financial condition.

Explanation:

Financial regulatory agencies are saddled with the responsibility of providing financial supervision and regulations to Banks and financial institutions. They also maintain integrity in the financial system inorder to boost the confidence of investors, creditors, depositors and the general public.

However, one of the major reasons why financial information is provided by the regulatory agencies to investor, creditors and depositors is to make informed decisions about Banks and their financial conditions.

This means that various groups that have interest in Banks and financial institution are kept abreast of happenings in the financial sector of the economy and are able to know which bank and financial institution is healthy in terms of finances and to know where to invest subsequently.

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3 years ago

You need some money today and the only friend you have that has any is your miserly friend. He agrees to loan you the money you

Serggg [28]

Answer:

The correct option is (b)

Explanation:

Given:

Monthly payment for 6 months = $30 per month

Time period = 6 month (6 periods)

Monthly interest rate = 2%

In order to compute borrowed amount, present value of these payments need to be computed which is an annuity as same amount of $30 is paid.

Checking PVIFA table for 2%, 6 periods, annuity factor is 5.6014.

Borrowed amount = Monthly payment × PVIFA(2%,6)

= 30 × 5.6014

= $168.042

Borrowed amount is $168.042 or $168.22 approximately (difference in value due to annuity factor being rounded off)

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3 years ago

You are considering buying a stock with a beta of 3.05. If the risk-free rate of return is 8.0%, and the expected return for the

elena55 [62]

Answer:

38.5%

Explanation:

Rf = 8.0%

Rm = 18.0%

Beta = 3.05

RRR ?

from the given data the capital asset pricing model will be used to calculate the RRR

RRR = Rf + β (Rm - Rf)

=8.0 + 3.05 (18.0-8)

=38.5%

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2 years ago

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