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2 years ago

If the demand for loans increases, the interest rate will fall. True or false

Business

1 answer:

guajiro [1.7K]2 years ago

8 0

Answer:

false

Explanation:

Interest is the cost of using credit. The applicable interest rate determines this cost. Like most other commodities, interest rates are subject to the forces of demand and supply.

If the demand for credit increases, then the cost of credit will increase, meaning interest rates will increase. On the other hand, a decline in the demand for loans will cause interest rates to reduce.

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why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too

Whitepunk [10]

I believe the answer is: c. to make the loan look more attractive and competitive now

By offering it at low initial rate, the people who borrow money would experience low burden if they plan to return the money within short period of time. This would make them much more likely to obtain a loan, and it also would make the bank that create the loan program looks better compared to their competitors.

8 0

2 years ago

A stock has annual returns of 5 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithme

sergij07 [2.7K]

Answer:

Arithmetic = 3%

Geometric = 2.37%

Explanation:

The arithmetic average of 'n' returns is given by:

$A = \frac{\sum r_i}{n}$

For five returns of 5% ,21%, -12%, 7%, and -6%:

$A=\frac{0.05+0.21-0.12+0.07-0.06}{5}\\ A=0.03=3\%$

The geometric average of 'n' returns is given by:

$G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1$

For five returns of 5% ,21%, -12%, 7%, and -6%:

$G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%$

8 0

3 years ago

Hourly, blue collar jobs always pay less than salaried, white collar jobs.

mr Goodwill [35]

Im pretty sure its false.

4 0

2 years ago

Read 2 more answers

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimat

Ymorist [56]

Answer: $4,811

Explanation:

Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,

= 6% * 98,700

= $5,922

The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.

Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.

In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.

That would be,

= 5,922 - 1,111

= $4,811

$4,811 is the amount that should be debited to Bad Debts Expense.

3 0

3 years ago

Use your knowledge about the advantages of international trade to complete each sentence. International tradeeconomic growth . I

Hoochie [10]

International trade has been significant for the globalization of free trade relations.

Explanation:

International trade has been responsible for the global economic growth in the 20th and 21st century .

International trade is responsible for the specialization of goods for one country which is at the most advantage for making that particular product while being able to import the others they may need

International trade makes it so that the types of goods and services available around the world can reach any other part of the world.

3 0

2 years ago

Read 2 more answers