All categories

3 years ago

A business cycle can indicate that an economy is in a recession if:

Business

1 answer:

Drupady [299]3 years ago

3 0

Answer:

C the economy remains in a contraction for two quarters.

Explanation:

A recession is a period characterized by a decline in the level of economic activities. A decrease in the GDP value indicates the slowing down of economic activities. Should be GDP value decline for two or more consecutive quarters, the economy is said to be in a recession. Slowing down or decline in economic activities is referred to as contraction.

During a recession, the level of unemployment rises, demand for goods and services reduces, and income levels also decline. Recessions usually last between six to eighteen months. A prolonged recession results in depression.

You might be interested in

. Leasing<br> in which one<br> Difine leasing

AlekseyPX

Answer:

the leasing are have a great weekend talk and everything is fine simple statement maney other people. do you Askhed for me and I am also leasan because my ear don't damage perfect sound listean

Explanation:

good habitaon

8 0

3 years ago

A lender is considering what terms to allow on a loan. Current market terms are 8 percent interest for 25 years for a fully amor

ioda

Answer:

1. The origination fee that the lender should charge if Rich will repay the loan after 25 years = $20,000 approximately.

2. The origination fee that the lender should charge if Rich will repay the loan after 10 years = $6,600 approximately.

Explanation:

a) Data and Calculations:

Amount requested by Rich = $100,000

Amount the bank is willing to lend Rich = $95,000

Interest rate = 9%

Period of loan = 25 years or 10 years

From an online finance calculator:

At 10% interest rate:

PMT = $-10,465.97

Sum of all periodic payments = $-261,649.17

Total Interest = $166,649.17

At 9% interest rate:

PMT = $-9,671.59

Sum of all periodic payments = $-241,789.84

Total Interest = $146,789.84

Expected Origination Fee:

Interest at 10% = $166,649.17

Interest at 9% = $146,789.84

Required origination fee = $19,859.32 ($166,649.17 - $146,789.84)

This is equivalent to $20,000

Payment after 10 years:

At 10% interest rate:

PMT = $-15,460.81

Sum of all periodic payments = $-154,608.13

Total Interest = $59,608.13

At 9% interest rate:

PMT = $-14,802.91

Sum of all periodic payments = $-148,029.09

Total Interest = $53,029.09

Expected Origination Fee:

Interest at 10% = $59,608.13

Interest at 9% = $53,029.09

Required origination fee = $6,579.04 or $6,600 ($59,608.13 - $53,029.09)

7 0

3 years ago

BDJ Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 10.3 percent coupon

defon

Answer:

The coupon rate is 10.3%

Explanation:

The interest to set on the bond in order to sell them at par can be computed using rate formula in excel:

=rate(nper,pmt,pv,fv)

nper is the number of times the bond would pay interest over its time to maturity which is 19*2=38

pmt is the interest payment semi-annually at $1000*10.3%/2=$51.5

pv is the price of the bond which is the par value of $1000

fv is the value at redemption which is also $1000

=rate(38,51.5,-1000,1000)

rate=5.15%

this is the semi-annual rate ,the yearly yield to maturity is 5.15%*2=10.30%

When a bond sells at par the yield to maturity is the same as the coupon rate

5 0

3 years ago

Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of?

Margarita [4]

Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of competitive advantage.

<h3>What is competitive advantage?</h3>

This is the term that is used to refer to the advantage that people would have over their rivals in a given economy. This tells us of the way that the person would be able to provide the services and the goods that their consumers needs in a way that the consumers would have preference for them.

Hence we can say that the Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of competitive advantage.

Read more on competitive advantage here: brainly.com/question/14030554

#SPJ1

7 0

2 years ago

What determines foreign exchange rates?

kondaur [170]

Answer:

Option A Combination of rising productivity elsewhere and US inflationary policies

Explanation:

The reason is that the it talks about the inflation control policies which is one of the key factor that affects inflation. Furthermore it also talks about the increase in productivity which means that the product demand is rising and so the demand of the currency would rise when the greater number of goods would be exported to different countries.

6 0

4 years ago