Accountability is when an individual or department experiences consequences for their performance or actions. Accountability is essential for an organization and for a society. Without it, it is difficult to get people to assume ownership of their own actions because they believe they will not face any consequences.
Answer:
C. A federal system makes the government serve its citizens better because it allows for the existence of sub-units that have significant power.
Explanation:
A normative statement is a kind of statement which offers, the betterment, as includes a suggestion in the statement.
It is not descriptive statement, as it does not include any facts.
A descriptive statement states the facts and analyses the situations accordingly.
This statement is descriptive as rest above statements a and b includes facts.
And the statement d does not provide any suggestion, whereas only statement c provides a suggestion for the system.
Thus, correct option is
Statement c
Answer:
$60,936
Explanation:
Provided information,
$12,000 will be received at each year end from third year to 12th year end.
The discount rate provided = 10%
Therefore PVAF of 10% for third year end to 12th year end will be for $1
Here 0.10 = 10% discount rate
Value for $12,000 = $12,000 5.078
Present Value of $12,000 will be
= $60,936
Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.