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vredina [299]
4 years ago
5

One result of asymmetric information about people's ability to repay a loan is that: a bank could make many loans to people who

don't pay them back. lenders are better off than with perfect information. banks will not make loans. loans will only be made to people who don't pay them back.
Business
1 answer:
kifflom [539]4 years ago
4 0

Answer:

Option (a) is correct.

Explanation:

Asymmetric information refers to the situation in which one of two parties involved in the transaction having more information than the other party.

It is evident that an asymmetric information is associated with all types of economic transaction. It is mostly associated with the insurance industry and banking industry.

In our case, banks have less information about the borrower's loan repaying capability and could make many loans to the people who will be the defaulters.

There are two problems arises from the asymmetric information:

(i) Moral hazard

(ii) Adverse selection

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dem82 [27]

Answer:

The answer is below

Explanation:

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Hence, in this case, the correct answer or statement to the question are:

1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss

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4 0
3 years ago
"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 W
vovikov84 [41]

Answer:

Schedule of cost of goods manufactured & Sold

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Direct materials used              $15

Direct labor                                 $20

Factory overhead Applied         <u>$30</u>

(150% of DL Cost)

Total manufacturing costs          $65

Add: Beginning WIP                    <u>$25</u>

Total cost of work in process     $90

Less: Ending WIP                         <u>$10</u>

Cost of goods manufactured    <u>$80</u>

Particulars                                                  Amount

Cost of goods manufactured                       $80

Add: Beginning finished goods inventory   <u>$5</u>

Cost of goods available for sale                 $85

Less: Ending finished goods inventory        <u>$15</u>

Cost of goods sold                                        <u>$70</u>

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3 0
3 years ago
National income accountants can avoid multiple counting by.
denis-greek [22]

Answer:only counting final goods

Explanation:

3 0
2 years ago
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Answer:

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8 0
3 years ago
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