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blagie [28]
2 years ago
7

When investors doubt the creditworthiness of a borrower what should happen to the price?.

Business
2 answers:
yanalaym [24]2 years ago
5 0
When investors doubt the creditworthiness of a borrower what should happen to the price?.
Alchen [17]2 years ago
5 0

Answer: Prices go down

Explanation:If interest rates rise above 8% and if the investor decides to sell it bond's price will fall as it makes bond unattractive as compare to other higher interest paying bonds/ instruments

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Economic exposure, a category of foreign exchange risk, is distinct from transaction exposure, which is concerned with the effec
zhannawk [14.2K]

Answer; this is true

Because, Foreign exchange risk is divided into three main groups: transaction exposure, translation exposure, and economic exposure. Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs. This is distinct from transaction exposure, which is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months

8 0
3 years ago
There are three firms in an economy: A, B, and C. Firm A buys $250 worth of goods from firm B and $200 worth of goods from firm
Natalka [10]

Answer: $3,350

Explanation:

GDP is the addition of value of goods and service minus purchase of intermediate goods.

Formula to calculate value-added by each firm is shown below:

Value-added = Sales by Firm + Change in stock – purchase of raw material

Value added by firm A = $5 × 200 + 0 – ($250 + $200)

                                      = $550

Value added by firm B = $7 × 300 + 0 – ($150 + $100)

                                      = $1,850

Value added by firm C = $1,000 + 0 - $50

                                      = $950

Economy's GDP = Value added by firm A + Value added by firm B + Value added by firm C

                           = $550 + 1,850 + 950

                           = $3,350

The value of GDP is $3,350

6 0
3 years ago
Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a
ValentinkaMS [17]

Answer:

The correct answer is True.

Explanation:

The concept of “Disruptive Innovation” is relatively new, it was introduced by Clayton Christensen in 1997 in the book “The innovators dilemma” and refers to how a product or service that originally was born as something residual or as a simple application without Many followers or users quickly become the leading product or service in the market.

Disruption therefore occurs when emerging companies use new technologies or new business models and outperform the market that were the leaders until then.

There comes a time when users do not perceive as a differential advantage the type of evolutionary innovation that has been applied to a product, because they no longer need all those new features that the manufacturer has added to increase the profit and then the manufacturer becomes vulnerable and the evolution of that particular product ceases to be decisive, from that moment the price of that product can become decisive or another product will arrive with a new disruptive technology that will compete with the previous product and with the established technology. The most normal is that new products or services are easier to use and cheaper than products that were already on the market before and thus quickly capture the interest of consumers.

6 0
3 years ago
Item
dolphi86 [110]

Answer:

Option D

Explanation:

Given that she is a recent graduate, she still has school loans to pay off, and therefore, she would be cash strapped and unable to get loans from banks because she probably does not have a good credit score.

Therefore, the correct answer would be option D

7 0
3 years ago
In preparing its cash flow statement for the year ended December 31, 2021, Rorschach Co. gathered the following data: Gain on sa
Snowcat [4.5K]

Answer:

($340,000)

Explanation:

The computation of the net cash outflows from investing activities is shown below:

Cash flows from investing activities:  

Cash from proceeds of sale of land $20,00

Purchase of Bond investments ($360,000)

Net Cash Outflows from investing activities ($340,000)

The positive sign shows the inflow of cash and the negative sign shows the outflow of cash and the same is considered in the above computation part

6 0
3 years ago
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