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3 years ago

Because of the adverse selection problem loading...:

1 answer:

7 0

C. lenders will write debt contracts that restrict certain activities of borrowers

In cases like this, the most common is that contracts include restrictive agreements that limit the debtor's behavior, so it is common for him to be asked for periodic financial statements or direct bank deposits to verify the activities and Debtor Performance

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A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are e

frosja888 [35]

Answer:

using solver, the optimal solution is:

$325,000 invested in bonds

$162,500.01 invested in mortgages

$162,499.99 invested in personal loans

maximum profit = $66,625

Explanation:

profit maximization equation:

0.1b + 0.085m + 0.095c + 0.125p

where:

b = money invested in bonds

m = money invested in mortgage loans

c = money invested in car loans

p = money invested in personal loans

constraints:

b + m + c + p ≤ 650,000

p ≤ 0.25 x 650,000 ⇒ p ≤ 162,500

m ˃ p

b ˃ p

using solver, the optimal solution is:

$325,000 invested in bonds

$162,500.01 invested in mortgages

$162,499.99 invested in personal loans

maximum profit = $66,625

actually solver gave me the following solution:

$325,000 invested in bonds

$162,500 invested in mortgages

$162,500 invested in personal loans

maximum profit = $66,625

since mortgage loans must be larger than personal loans, I added 1¢ to mortgage loans and subtracted 1¢ from personal loans

4 0

3 years ago

Another one.... TRUE OR FALSE<br><br>A debit is the same thing as a deposit.

ololo11 [35]

Answer:

false

Explanation:

6 0

3 years ago

Select the items that describe incentives.can be rewards or penaltiesinfluence future actionsencourage people to actcan be monet

EastWind [94]

The answer is:

high wages

good benefit package

safe work environment

Incentives is given by company to influence its employers to dedicate themselves to a certain task for the company.

The incentives could come in a form of monetary (related to money) , or non-monetary (other than money but still bring positive financial value to your life)

7 0

3 years ago

Read 2 more answers

Costs such as security deposit,inspections, attorney or broker fees are examples of blank

Tom [10]

Managing money. Hope this. Helps

4 0

2 years ago

Read 2 more answers

As the labor market became more competitive in the later 19th century, employers began to offer all of the following EXCEPT:

il63 [147K]

<span>As the labor market became more competitive in the later 19th century, employers began to offer all of the following except for letter C. Vacation Days.
When this happens, the market demands employers/workers to be more productive.</span>

8 0

3 years ago

Because of the adverse selection problem loading...​:

Because of the adverse selection problem loading...: