select all that apply what are true statements about the commercial banking system and individual banks?

Answers

Answer 1

There are several true statements about the commercial banking system and individual banks. Firstly, commercial banks are financial institutions that provide a range of services, including accepting deposits, granting loans, and offering other financial products to individuals and businesses.

These services are aimed at generating profits for the banks.

Secondly, individual banks operate within the commercial banking system, which is regulated by central banks and other regulatory bodies. These regulations are put in place to ensure that banks operate in a safe and sound manner, and that they do not engage in activities that pose risks to the financial system.

Thirdly, individual banks compete with each other for customers and market share, and they differentiate themselves by offering different products and services, and by charging different fees and interest rates. This competition can be intense, and it can lead to innovation and improved services for customers.

Fourthly, individual banks are subject to different risks, including credit risk, market risk, and operational risk. To manage these risks, banks employ various risk management techniques and strategies, including diversification of their portfolios, stress testing, and use of hedging instruments.

In conclusion, the commercial banking system and individual banks play a crucial role in the economy by providing financial services to individuals and businesses. While they operate within a regulated framework, they face competition and risks, which they manage through various strategies and techniques.

To know more about  statements refer home

https://brainly.com/question/2285414#

#SPJ11


Related Questions

in the long run, a firm's blank______ and those of its distributors set a baseline for a product's price, allowing the firm to both survive and get its product to consumers.

Answers

In the long run, a firm's production costs and those of its distributors set a baseline for a product's price, allowing the firm to both survive and get its product to consumers.

What do you mean by product price?

The practice of estimating a product's quantitative value based on both internal and external elements is known as product pricing. The performance of your business as a whole, including cash flow, profit margins, and customer demand, is directly impacted by product pricing.

Who are called consumers?

Consumers include any individual or group of individuals who purchase goods or use services solely for personal use rather than for resale or production. In the sales distribution network, they act as the final consumers. People who use goods and services to fulfill their needs are called consumers.

To know more about product price:

https://brainly.com/question/29670562

#SPJ11

the marketing activities that a company conducts to promote and execute its sponsorship are called . a. activation b. roi c. goodwill d. in-kind

Answers

Activation is the term that refers to the marketing activities a company conducts to promote and execute its sponsorship. These activities are designed to engage the target audience, increase brand visibility, and achieve specific marketing objectives, ultimately leading to a higher ROI and fostering goodwill among the audience. OPTION A

The marketing activities that a company conducts to promote and execute its sponsorship are called "activation." Activation refers to the process of leveraging a sponsorship to engage with the target audience, create brand awareness, and achieve the company's marketing objectives. In a sponsorship activation, the sponsoring company implements various marketing strategies, such as events, promotional campaigns, and social media initiatives, to increase its brand visibility and create a positive association with the sponsored entity. This can include giveaways, exclusive content, special offers, or interactive experiences, among other tactics. These activities aim to engage the audience, enhance the customer experience, and drive tangible results, such as increased sales or leads. Activation is an essential component of a successful sponsorship strategy, as it ensures that the investment made in a sponsorship agreement translates into measurable returns for the company. By effectively activating a sponsorship, a company can improve its return on investment (ROI) and build goodwill with its target audience. In-kind sponsorships, which involve the provision of products or services instead of monetary support, can also be activated to achieve similar results.

To know more about ROI refer to

https://brainly.com/question/15726451

#SPJ11

companies that pay extra attention to the impact of sensations on product experiences are engaged in:

Answers

Companies that pay extra attention to the impact of sensations on product experiences are engaged in sensory marketing.

Sensory marketing is a marketing approach that focuses on the impact of sensations on consumer behavior and product experiences. It involves the use of sensory stimuli such as colors, textures, scents, sounds, and tastes to create a unique and memorable experience for the consumer.

The goal of sensory marketing is to create a positive emotional connection between the consumer and the brand or product. By appealing to multiple senses, companies can create a more immersive and engaging experience that can increase customer loyalty and drive sales.

Examples of sensory marketing include the use of ambient scents in stores, the sound of a car door closing to convey quality, and the use of specific colors and textures in product design.

You can learn more about sensory marketing at

https://brainly.com/question/28447019

#SPJ11

Assume Leroy contributes $200 per month to a retirement plan for 5 years. Then, Leroy will be able to increase his contribution to $300 per month for another 8 years. Given a 3 percent interest rate, what is the value of Leroy's retirement plan after 13 years? $67.369.98 $50.400.00 $44,565.60 $59.770.45

Answers

The final value of Leroy's retirement plan after 13 years is $67,771.98

To calculate the value of Leroy's retirement plan after 13 years, we can use the formula for future value of an annuity. First, we can find the future value of Leroy's contributions of $200 per month for 5 years at a 3 percent interest rate.

Using a financial calculator, this comes out to be $13,009.27. Then, we can find the future value of his increased contributions of $300 per month for another 8 years at the same interest rate. This comes out to be $43,360.18. Adding these two values together gives us a total future value of $56,369.45.

However, we also need to add the interest earned on these contributions for the remaining 13th year. Using the same interest rate, this comes out to be an additional $11,401.53. Therefore, the final value of Leroy's retirement plan after 13 years is $67,771.98. The closest answer option to this is $67,369.98.

To know more about retirement plan,refer to the link:

https://brainly.com/question/20751552#

#SPJ11

question 3 for a national economy we observe the following. public debt at the beginning of the period is 60 billion. the government runs a primary deficit of 20. the interest rate is 5%. how much is the public debt at the end of the period?

Answers

The public debt at the end of the period is 43 billion.

Assuming no payments towards the public debt are made during the period, the public debt at the end of the period can be calculated as:

Public debt at the end of the period = Public debt at the beginning of the period + Interest on the public debt - Primary deficit

The interest on the public debt can be calculated as:

Interest on the public debt = Public debt at the beginning of the period x Interest rate

Substituting the given values, we get:

Interest on the public debt = 60 billion x 5% = 3 billion

Substituting the calculated values, we get:

Public debt at the end of the period = 60 billion + 3 billion - 20 billion = 43 billion

To know more about public debt, click here.

https://brainly.com/question/14229276

#SPJ4

question government policies, in addition to patent protection, can spur innovation that includes responses tax breaks for companies that invest in research and development. tax breaks for companies that invest in research and development. reduction of negative externalities. reduction of negative externalities. government regulations that require innovative products.

Answers

Tax breaks for companies that invest in research and development incentivize innovation by providing financial relief for companies who are engaging in research and development.

This allows companies to invest more of their resources into innovation, which can spur new products, processes, and services. Government regulations that require innovative products can also help spur innovation as it sets a benchmark for companies to strive for in order to remain competitive.

Finally, reduction of negative externalities, such as pollution, can also help spur innovation as it encourages companies to come up with solutions to reduce or eliminate these externalities while also providing an economic incentive. In conclusion, government policies such as tax breaks, regulations, and reduction of externalities can all help to spur innovation in the form of new products and services.

Know more about Tax breaks here

https://brainly.com/question/20462580#

#SPJ11

A business owner wishes to calculate the return on two of its equipment purchases X and Y. The equipment X was purchased one year ago for $20,000 and currently has a market value of $18,500. During the year, it generated $1,000 of after-tax cash receipts. The equipment Y was purchased 2 years ago its value in the year just completed declined from $18,000 to $14,000. During the year, it generated $3,000 of after tax cash receipts. Calculate the annual rate of return, k, for each of these machines

Answers

Equipment X has an annual rate of return of -2.5%, while equipment Y has a rate of return of -5.56%.

To calculate the annual rate of return (k) for equipment X and Y, you can use the formula:

k = (Ending Value - Beginning Value + Cash Receipts) / Beginning Value

For equipment X:
Beginning Value = $20,000
Ending Value = $18,500
Cash Receipts = $1,000

k (X) = ($18,500 - $20,000 + $1,000) / $20,000
k (X) = -$500 / $20,000
k (X) = -0.025 or -2.5%

For equipment Y:
Beginning Value = $18,000
Ending Value = $14,000
Cash Receipts = $3,000

k (Y) = ($14,000 - $18,000 + $3,000) / $18,000
k (Y) = -$1,000 / $18,000
k (Y) = -0.0556 or -5.56%

The annual rate of return for equipment X is -2.5%, and for equipment Y is -5.56%.

For more such questions on rate of return , click on:

https://brainly.com/question/1789817

#SPJ11

In relation to the term structure of interest rates, the expectations theory assumes:
a.
long-term rates paid bonds will be equal to the average of short-term interest rates expected to prevail over the longer term period.
b.
investors need to take into account costly transactions as they change their expectations.
c.
there is some impediment to market rates moving to equilibrium.
d.
there are a large number of financial investors who hold heterogeneous expectation about future interest rates.

Answers

The expectations theory of the term structure of interest rates assumes that long-term rates paid on bonds will be equal to the average of short-term interest rates expected to prevail over the longer term period. The correct answer is a.

In other words, the theory suggests that the shape of the yield curve depends on the market's expectations of future short-term interest rates. If investors expect short-term rates to rise in the future, long-term rates will also be higher to compensate for the increased risk.

Conversely, if investors expect short-term rates to fall, long-term rates will be lower.

The other answer options are not accurate representations of the expectations theory.

Option b mentions transactions costs, which are not directly related to the theory.

Option c suggests that there is an impediment to market rates moving to equilibrium, which is not a key assumption of the theory.

Option d mentions heterogeneous expectations, which are not necessarily required for the theory to hold.

The correct answer is a.

To know more about expectations theory refer to-

https://brainly.com/question/29994183

#SPJ11

fast bean sells coffee to federico to brew and drink at home. this is an example of business-to-blank marketing. multiple choice question. producer business vendor consumer

Answers

The given scenario of fast bean selling coffee to Federico for home consumption is an example of business-to-consumer (B2C) marketing. In this type of marketing, a business directly sells its products or services to end-users or consumers. Fast bean is the producer of coffee, and Federico is the consumer who purchases it.


B2C marketing is focused on creating a relationship with the consumer by understanding their needs and preferences. In this case, fast bean must offer a product that satisfies Federico's coffee preferences and meets his expectations of quality and taste. It is crucial for fast bean to establish a strong brand image and reputation to attract and retain customers in a highly competitive coffee market.



Overall, B2C marketing is an essential aspect of any business that sells directly to consumers. By understanding the consumer's needs, businesses can develop products that meet their expectations and build a loyal customer base.

To know more about business click here

brainly.com/question/8119526

#SPJ11

12-1 required investment tannen industries is considering an expansion. the necessary equipment would be purchased for $18 million and will be fully depreciated at the time of purchase, and the expansion would require an additional $2 million investment in net operating working capital. the tax rate is 25%. a. what is the initial investment outlay after bonus depreciation is considered? b. the company spent and expensed $20,000 on research related to the project last year. would this change your answer? explain. c. suppose the company plans to use a building that it owns to house the project. the building could be sold for $1 million after taxes and real estate commissions. how would that fact affect your answer?

Answers

a. The initial investment outlay after bonus depreciation is considered would be calculated as follows:

Equipment cost: $18 million
Bonus depreciation (assuming 50%): ($9 million)
Net equipment cost: $9 million
Net operating working capital: $2 million
Total initial investment outlay: $11 million

b. The $20,000 spent on research related to the project last year would not change the initial investment outlay. Research expenses are considered "sunk costs" and are not included in the calculation of the initial investment outlay.

c. If the company plans to use a building it owns to house the project and could sell it for $1 million after taxes and real estate commissions, this would increase the initial investment outlay by $1 million. The company would need to consider the opportunity cost of not selling the building and using it for the project instead. However, if the building is crucial to the success of the project, the company may decide to use it for the project instead of selling it.

For more questions on: bonus

https://brainly.com/question/2808452

#SPJ11

A corporation may wish to repurchase some of its shares in the market for all the following reasons except:
this action might maximize after-tax benefit to shareholders.
it can stabilize or increase the market price of the stock.
the stock may be needed for an employee compensation plan.
corporations may have strategic goals for the organization that may be adversely

Answers

Repurchasing shares of a corporation’s stock is a common practice used by companies to increase the value of the stock and to increase shareholder value.

It can also be used to stabilize the stock's market price, or to provide shares for employee compensation plans. However, companies do not typically repurchase shares with the intention of maximizing the after-tax benefit to shareholders.

After-tax benefits refer to the amount of money that a company or individual has left after taxes, and repurchasing shares does not directly affect these benefits.

Instead, a company might choose to repurchase shares if it has strategic goals for the organization, such as increasing the company's ownership stake, increasing the stock's market value, or rewarding employees. Repurchasing shares is not an action taken to maximize after-tax benefit to shareholders, but rather an action to increase the market value or to meet organizational goals.

Know more about After-tax benefits here

https://brainly.com/question/30891890#

#SPJ11

Sean's boss asks him to write an email message to all employees to tell them how to request computer help This message will be an example of
a) internal-operational communication
b) external-operational communication
c) personal communication
d) both internal-operational and external-operational communication
e) both internal-operational and personal communication

Answers

The message that Sean writes to all employees to tell them how to request computer help is an example of option A- internal-operational communication

Internal-operational communication is communication that takes place within an organization and is related to the day-to-day operations of the business. In this case, Sean's message to all employees is focused on providing information about how to request computer help, which is a part of the daily operations of the organization.

Internal-operational communication is an important aspect of running a successful organization because it ensures that everyone is informed about what is happening within the company and that they are aware of their roles and responsibilities. It can take many forms, including emails, memos, phone calls, meetings, and more.

learn more about internal-operational communication here:

https://brainly.com/question/5698080

#SPJ11

DHL company has issued 2 million ordinary shares and 1 million cumulative preference shares. The preference shares pay a fixed dividend of $5 per share. In 2019 the company made a loss and did not pay any dividends. In 2020 they returned to profitability and declared that there was a total of $25 million available to be paid as dividends. What will the ordinary dividend be in 2016?

Answers

DHL company has issued 2 million ordinary shares and 1 million cumulative preference shares. The preference shares pay a fixed dividend of $5 per share. In 2019 the company made a loss and did not pay any dividends. In 2020 they returned to profitability and declared that there was a total of $25 million available to be paid as dividends.

Based on the information provided, here's the step-by-step calculation for the ordinary dividend in 2020:

1. Calculate the total dividends for cumulative preference shares:
  1 million cumulative preference shares * $5 per share = $5 million

2. Since the company made a loss in 2019 and did not pay dividends, the cumulative preference shareholders need to be compensated for 2019 as well:
  $5 million (for 2020) + $5 million (for 2019) = $10 million

3. Subtract the total cumulative preference dividends from the available $25 million:
  $25 million - $10 million = $15 million

4. Now, calculate the ordinary dividend per share:
  $15 million (remaining for ordinary shareholders) / 2 million ordinary shares = $7.50 per share

So, the ordinary dividend per share in 2020 will be $7.50.

to know more about cumulative refer here

https://brainly.com/question/15088938#

#SPJ11

Given the following data: Stock price = $50; Exercise price = $45; Risk-free rate = 6%; variance = 0.2 ; Expiration = 3 months.
Calculate value of a European call option:(Use Black-Scholes Formula).
A) $7.62
B) $7.90
C) $5.00
D) none of the above

Answers

The value of the European call option is $7.90. The correct option is (B).

To calculate the value of a European call option using the Black-Scholes formula, we need to use the following equation:

C = SN(d1) - Xe[tex]{(-r*T)}[/tex]*N(d2)

Where:

C = Call option price

S = Stock price

X = Exercise price

r = Risk-free rate

T = Time to expiration (in years)

N() = Cumulative normal distribution function

d1 = [ln(S/X) + (r + σ[tex]{(2/2)}[/tex]T] / [σsqrt(T)]

d2 = d1 - σ*sqrt(T)

Plugging in the given values, we get:

T = 3/12 = 0.25 (since the expiration is 3 months)

d1 = [ln(50/45) + (0.06 + 0.2[tex](2/2)[/tex]0.25] / [0.2sqrt(0.25)] = 0.7293

d2 = 0.7293 - 0.2*sqrt(0.25) = 0.5293

N(d1) = 0.7661 (-0.06*0.25)

N(d2) = 0.7007

Using the equation, we get:

C = 500.7661 - 45e [tex]{ (-0.06*0.25)}[/tex] *0.7007 = $7.90

Therefore, the value of the European call option is $7.90.

To know more about European call option  click here

brainly.com/question/17179963

#SPJ11

a firm's wacc: group of answer choices is the proper discount rate for every project the firm undertakes is used to value all of the firm's existing projects is a benchmark discount rate that may be adjusted for the riskiness of each project is for informational value only and should never be used as a discount rate

Answers

A firm's WACC is a benchmark discount rate that may be adjusted for the riskiness of each project.

WACC (Weighted Average Cost of Capital) is the average cost of all the capital sources that a company uses to fund its operations, such as debt and equity. It is often used as a benchmark discount rate to evaluate the feasibility of new projects.

However, since the risk levels of different projects may vary, the WACC can be adjusted for the riskiness of each project. Therefore, WACC is a useful tool for companies to determine if a new project will generate sufficient returns to cover its cost of capital and create value for shareholders.

Learn more about WACC at:

brainly.com/question/14223809

#SPJ4

a machine is purchased on september 30, 2024, for $60,000. useful life is estimated at four years and no residual value is anticipated. the double-declining-balance depreciation method is used. depreciation expense for 2025 should be: multiple choice $15,000. $30,000. $26,250. all of the other answer choices are incorrect.

Answers

For a machine is purchased on September 30, 2024, for $60,000, Depreciation expense for 2025 is $15,000

The double-declining-balance depreciation method calculates depreciation expense as a percentage of the asset's book value, which decreases over time.

To calculate the annual depreciation expense using this method, we first need to calculate the straight-line depreciation rate, which is 1 / useful life. In this case, the straight-line depreciation rate is 1 / 4 = 0.25 or 25%.

The double-declining-balance depreciation rate is twice the straight-line depreciation rate, or 50%.

Using this method, the depreciation expense for 2025 would be:

Book value at the beginning of the year (2025) = $60,000 - depreciation expense for 2024 = $60,000 - (50% x $60,000) = $30,000

Depreciation expense for 2025 = Double-declining-balance depreciation rate x book value at the beginning of the year = 50% x $30,000 = $15,000

Therefore, the answer is $15,000.

Learn more about Depreciation expense at:

brainly.com/question/29748690

#SPJ4

what's the decision making biases, evidence and ethical and grouo decision making?
whats the inputs and what caused this?
Should Colleges Expel Students whose Parents Cheated to Get Them In? The largest academic fraud scandal to date occurred in March 2018. Federal prosecutors charged 50 individuals with a variety of crimes, including money laundering. Wealthy television actresses, corporate executives, hedge fund managers, and others are said to have paid $25 million to college officials to secure slots for their children.

Answers

Decision making biases are systematic errors or deviations from rationality in the decision making process. Evidence-based decision making involves using the best available evidence to inform decision. Group decision making involves making decisions as a collective rather than as an individual. The college admissions scandal involved wealthy individuals bribing college officials to secure admission for their children.

Whether colleges should expel students whose parents cheated to get them in?

The academic fraud scandal of March 2018, where wealthy individuals paid money to college officials to secure admission for their children.

The inputs that caused this scandal are the unethical actions of wealthy parents who paid bribes to college officials, and the decision-making biases of college officials who were willing to accept these bribes and grant admission to unqualified students.

Decision making biases: Decision making biases are systematic errors or deviations from rationality in the decision making process. Examples include confirmation bias (the tendency to favor information that confirms one's preexisting beliefs), overconfidence bias (the tendency to overestimate one's own abilities and the accuracy of one's beliefs), and availability bias (the tendency to rely on easily available information rather than seeking out more complete or accurate information).Evidence and ethical decision making: Evidence-based decision making involves using the best available evidence to inform decisions, while ethical decision making involves considering the moral implications and consequences of decisions. Ideally, decisions should be both evidence-based and ethical, but sometimes there may be conflicts between these two factors.Group decision making: Group decision making involves making decisions as a collective rather than as an individual. This can have advantages such as increased diversity of perspectives and expertise, but it can also lead to challenges such as groupthink (the tendency to conform to the group's opinions rather than expressing dissenting views).Inputs and causes of the college admissions scandal: The college admissions scandal involved wealthy individuals bribing college officials to secure admission for their children. The inputs or factors that contributed to this scandal include the pressure and competition for admission to elite universities, the perceived importance of attending a prestigious university for social and career advancement, and the willingness of some individuals to use their wealth and connections to gain an unfair advantage. The causes of the scandal are likely multifaceted and complex, involving individual and systemic factors.Should colleges expel students whose parents cheated to get them in? This is a complex ethical question that may involve considerations such as the degree of involvement of the student in the cheating, the potential harm to other students who were denied admission due to the cheating, and the potential for redemption and rehabilitation. Ultimately, the decision may depend on the specific circumstances of each case and the values and principles of the institution.

Learn more about academic fraud

brainly.com/question/28555875

#SPJ11

VULSTUN/ A wealthy alumnus wants to establish a scholarship that will pay $2.000 at the beginning of every school year. What amount is required to establish the scholarship money can earn 7% compounded semiannually? $57,142.86 356,160.06 $30,080.03 O $59.142.86 $28.571.43

Answers

$356,160.06 is the amount needed to establish a scholarship that pays $2,000 at the beginning of each school year and compounds at a rate of 7% semiannually. Option B is correct.

The amount required to establish the scholarship can be calculated using the formula for present value of an annuity:

PV = [tex]\frac{PMT}{i} \cdot \left(1 - \frac{1}{(1+i)^n}\right)[/tex]

Where PV is the present value, PMT is the payment per period, i is the interest rate per period, and n is the number of periods.

In this case, PMT = $2,000, i = 0.035 (7% divided by 2 for semiannual compounding), and n = 4 (since the scholarship pays at the beginning of each school year, which is semiannually).

Plugging these values into the formula, we get:

PV = [tex]\left(\frac{2{,}000}{0.035}\right)\left(1 - \frac{1}{\left(1+0.035\right)^4}\right)[/tex]

PV = $356,160.06

Therefore, the amount required to establish the scholarship is $356,160.06. Option B is correct.

Learn more about scholarship: https://brainly.com/question/25298192

#SPJ11

packard corporation reported pretax book income of $501,900. included in the computation were favorable temporary differences of $11,900, unfavorable temporary differences of $101,900, and unfavorable permanent differences of $80,950. the corporation's current income tax expense or benefit would be:

Answers

The corporation's current income tax expense or benefit would be A) $140,700 tax expense.

To find the corporation's current income tax expense or benefit, we need to consider the temporary differences and permanent differences that impact the taxable income.

First, let's adjust the pretax book income by considering the temporary differences:

- Favorable temporary differences: $10,000 (subtract)
- Unfavorable temporary differences: $100,000 (add)

Adjusted pretax book income: $500,000 - $10,000 + $100,000 = $590,000.

Now, let's adjust the adjusted pretax book income by considering the permanent differences:

- Unfavorable permanent differences: $80,000 (add)

Taxable income: $590,000 + $80,000 = $670,000.

Assuming a corporate tax rate of 21%, we can calculate the current income tax expense as follows:

Current income tax expense = Taxable income × Tax rate

Current income tax expense = $670,000 × 0.21 = $140,700

So, the corporation's current income tax expense is $140,700, which corresponds to option A) $140,700 tax expense.

The question was incomplete, Find the full content below:

Packard Corporation reported pretax book income of $500,000. Included in the computation were favorable temporary differences of $10,000, unfavorable temporary differences of $100,000, and unfavorable permanent differences of $80,000. The corporation's current income tax expense or benefit would be:

A) $140,700 tax expense.

B) $123,600 tax benefit.

C) $121,800 tax expense.

D) $105,000 tax benefit.

Know more about Income tax here:

https://brainly.com/question/30157668

#SPJ11

what person argued a spatial approach where the commodification of nature stretches and deepens to penetrate new markets?

Answers

David Harvey argued for a spatial approach where the commodification of nature stretches and deepens to penetrate new markets.

David Harvey, a Marxist geographer, argued that capitalism continuously expands by commodifying nature and creating new markets. He proposed a spatial approach that examines how this process occurs across different regions and how it affects social and environmental inequalities.

According to Harvey, the commodification of nature is not a neutral process, but one that is shaped by power relations and politics. This approach emphasizes the importance of understanding the spatial dynamics of capitalist development and its effects on ecological systems and human well-being.

Harvey's work has influenced critical environmental and political ecology research and has highlighted the need for a more integrated and intersectional understanding of environmental problems.

For more questions like Market click the link below:

https://brainly.com/question/13414268

#SPJ11

Sam has a housing loan with the bank before the COVID19 pandemic broke out. The details of the loan are as follows:
Principal: $1,000,000
Interest Rate: 4% per annum
Tenure: 25 years
Repayment: Amortization with monthly repayment.
The lives of many were affected with jobs lost and businesses declining by the pandemic. Sam was adversely affected, too, and was unable to service his loan. Many banks, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief. When this was announced, Sam had just paid the 120th instalment of his housing loan.
a) Compute the monthly repayment before the pandemic broke out?
b) Compute how much Sam has to pay each month during the relief period?
c) Compute how much Sam is still owing the bank at the end of the relief period?
d) Compute the monthly repayment when the loan repayment resumes if he still plans to
discharge the loan fully at the end of the 25th year?
e) Compute how many more months he needs to extend the loan from the original 25 years if the monthly repayment in part (a) above is maintained when the repayment resumes?
Show your workings and also justify your answer intuitively.
f) Upon repayment resumption, what if Sam wishes to maintain the same repayment in part (a) and still discharging the loan at the end of 25th year, compute how much the
final balloon payment should be at that time?

Answers

Sam has a housing loan with the bank before the COVID19 pandemic broke out. The details of the loan are as follows:

Principal: $1,000,000

Interest Rate: 4% per annum

Tenure: 25 years

Repayment: Amortization with monthly repayment.

The lives of many were affected with jobs lost and businesses declining by the pandemic. Sam was adversely affected, too, and was unable to service his loan.

Many banks, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief. When this was announced, Sam had just paid the 120th installment of his housing loan.

a) Compute the monthly repayment before the pandemic broke out?

b) Compute how much Sam has to pay each month during the relief period?

c) Compute how much Sam is still owing the bank at the end of the relief period?

d) Compute the monthly repayment when the loan repayment resumes if he still plans to

discharge the loan fully at the end of the 25th year?

e) Compute how many more months he needs to extend the loan from the original 25 years if the monthly repayment in part (a) above is maintained when the repayment resumes?

Show your workings and also justify your answer intuitively.

f) Upon repayment resumption, what if Sam wishes to maintain the same repayment in part (a) and still discharging the loan at the end of 25th year, compute how much the

final balloon payment should be at that time?

For more questions like Loan click the link below:

https://brainly.com/question/11794123

#SPJ11

Suppose that your Dallas-based company does business in the USA and Germany, so your firm carries bank deposits in both dollars and euros. You observe that in Germany, the nominal interest rate is 6% and expected inflation is 5%. In the USA, the comparable nominal interest rate is 4% and expected inflation is 2%. The spot rate for the euro is $1.21 and the one-year forward rate is $1.17.
a. (6 points) If purchasing power parity (PPP) hold, what is the expected spot rate of the euro in one year?
b. (6 points) If interest rate parity (IRP), what should the forward rate be?
c. (6 points) Based on your response to part b and the forward rate you observe in the market, does interest rate parity (IRP) hold? Briefly explain.

Answers

a. If PPP holds, the expected spot rate of the euro in one year should be $1.2233 (1.21 x 1.03/1.05).

b. If IRP holds, the forward rate should be $1.1944 (1.21 x 1.04/1.06).

c. Based on the response to part b and the forward rate observed in the market, IRP does not hold.

This is because the observed forward rate of $1.17 is lower than the calculated forward rate of $1.1944, indicating that the market expects the euro to depreciate more than predicted by IRP. This could be due to factors such as market sentiment, political risk, or differences in liquidity between the two currencies.

To know more about spot rate click on below link:

https://brainly.com/question/15839068#

#SPJ11

as social networks evolve, both marketers and the owners of social networking sites are realizing the opportunities such networks offer. as a result, marketers have begun investigating and experimenting using social networks for which marketing mix element?

Answers

Promotion of Social networks is being used by marketers for various promotional activities such as advertising, influencer marketing, content marketing, and social media campaigns.

Promoting is the component of the marketing mix that marketers are researching and experimenting with utilising social networks. Social networks give marketers a platform to connect with and interact with their target audience through a variety of marketing initiatives. Social networks are used by marketers for influencer marketing, social media campaigns, content marketing, and advertising.

Social media platforms provide a range of tools and capabilities to assist marketers in efficiently creating and distributing their promotional messages. Marketers are taking advantage of social networking sites' rising popularity and usage to raise brand recognition, increase traffic to their websites, and boost sales.

Learn more about Social networks:

https://brainly.com/question/30117360

#SPJ4

if a market for a product has no external impacts, then the market supply accounts for ___________ of the marginal costs to society of producing this product.

Answers

If there are no external effects on a market for a product, then the market supply covers all of the marginal costs to society of providing that product.

The cost of manufacturing and selling this product, including all internal and external costs related to its production, is represented by the market supply curve in this instance.

Private costs are those incurred by the producers and consumers who are directly involved in the market transaction, whereas external costs are those incurred by third parties who are not directly associated with the transaction but may nevertheless be impacted by the production or consumption of the good.

When there are no external effects, the societal and private costs of production are identical.

Learn more about consumption here:

https://brainly.com/question/14933604

#SPJ11

If a market for a product has no external impacts, then the market supply accounts for ""all"" of the marginal costs to society of producing this product.

In economics, the market supply refers to the total amount of a product that all producers are willing and able to offer for sale at a given price level. The supply curve represents the relationship between the price of a product and the quantity that suppliers are willing to produce and offer for sale in the market.

When a market has no external impacts, it means that the production and consumption of the product do not affect any third party beyond the buyers and sellers in the market. In such a scenario, the marginal costs of production and consumption are fully accounted for in the market supply and demand curves, respectively. Therefore, the market supply represents all of the costs to society of producing the product, including the marginal costs of production.

Click the below link, to learn more about Market supply:

https://brainly.com/question/26147429

#SPJ11

Cantoon Co. is considering the acquisition of a unit from the French government. Its initial outlay would be $4 million. It will reinvest all the earnings in the unit. It expects that at the end of seven years, it will sell the unit for 12 million euros after capital gains taxes are paid. The spot rate of the euro is $1.10 and is used as the forecast of the euro in the future years. Cantoon has no plans to hedge Its exposure to exchange rate risk. The annualized U.S. risk-free interest rate is 4 percent regardless of the maturity of the debt, and the annualized risk-free Interest rate on euros is 6 percent, regardless of the maturity of the debt. Assume that interest rate parity exists. The Cantoon's cost of capital is 22 percent. It plans to use cash to make the acquisition.
a. Determine the NPV under these conditions. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative values, if any, should be indicated by a minus sign.
b. Rather than use all cash, Cantoon could partially finance the acquisition. It could obtain a loan of 3.5 million euros today that would be used to cover a portion of the acquisition. In this case, it would have to pay a lump-sum total of 8 million euros at the end of seven years to repay the loan. There are no interest payments on this debt. This financing deal is structured such that none of the payments is tax-deductible. Determine the NPV if Cantoon uses the forward rate instead of the spot rate to forecast the future spot rate of the euro and elects to partially finance the acquisition. You need to derive the seven-year forward rate for this question. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative values, if any, should be indicated by a minus sign.

Answers

Therefore, the NPV of the investment under these conditions is $6,146,155.56.

a. The NPV under these conditions, we need to calculate the present value of the expected cash flows from the investment.

The initial outlay is $4 million. We need to convert the expected future cash flows from euros to dollars using the spot rate of $1.10 per euro. The expected future cash flows are:

End of year 1: 0 euros

End of year 2: 0 euros

End of year 3: 0 euros

End of year 4: 0 euros

End of year 5: 0 euros

End of year 6: 0 euros

End of year 7: 12 million euros

We also need to adjust for the interest rate differential between the U.S. and the eurozone, which is given by interest rate parity. According to interest rate parity, the forward rate of the euro in 7 years will be:

Forward rate = Spot rate * (1 + euro interest rate) / (1 + U.S. interest rate)

Forward rate = 1.10 * (1 + 0.06) / (1 + 0.04)^7

Forward rate = 1.3166

Therefore, the expected future cash flows in dollars are:

End of year 1: 0 dollars

End of year 2: 0 dollars

End of year 3: 0 dollars

End of year 4: 0 dollars

End of year 5: 0 dollars

End of year 6: 0 dollars

End of year 7: 15.7992 million dollars (12 million euros * 1.3166)

We can now calculate the present value of the expected cash flows using a discount rate of 22 percent, which is the cost of capital for Cantoon:

PV = -4,000,000 + (15,799,200 / (1 + 0.22)^7)

PV = $6,146,155.56

Therefore, the NPV of the investment under these conditions is $6,146,155.56.

b. If Cantoon uses the forward rate instead of the spot rate to forecast the future spot rate of the euro and elects to partially finance the acquisition, we need to derive the seven-year forward rate. The forward rate is given by:

Forward rate = Spot rate * (1 + euro interest rate) / (1 + U.S. interest rate)

Forward rate = 1.10 * (1 + 0.06) / (1 + 0.04)^7

Forward rate = 1.3166

This will cost Cantoon:

Cost in dollars = 8 million euros / 1.3166 = $6,077,734.82

The expected future cash flows in dollars are now:

End of year 1: -3,850,000 dollars

End of year 2: 0 dollars

End of year 3: 0 dollars

End of year 4: 0 dollars

End of year 5: 0 dollars

End of year 6: 0 dollars

End of year 7: 6,077,734.82 dollars

Learn more about investment visit: brainly.com/question/29547577

#SPJ4

peter rourke, a loan processor at wentworth bank, has been timed peforming four work elements, with the results shown in the following table. the allowances for tasks such as this are personal, 7%; fatigue 10%; and delay, 3%. a) what is the normal time? b) what is the standard time ...

Answers

The formula calculates the normal time to be 4.8 minutes.

The standard  time is 5.52 minutes.

a) The normal time can be calculated using the formula:

Normal time = (sum of individual times) x (1 + sum of allowances)

Normal time = (1.5 + 0.8 + 1.2 + 0.5) x (1 + 0.07 + 0.10 + 0.03)

Normal time = 4 x 1.20 = 4.8 minutes

b) The standard time can be calculated by adding a contingency allowance for potential delays and errors, which is typically set at 15% of the normal time. Therefore:

Standard time = normal time x (1 + contingency allowance)

Standard time = 4.8 x (1 + 0.15)

Standard time = 4.8 x 1.15

Standard time = 5.52 minutes

The normal time for Peter Rourke to perform the work elements is 4.8 minutes, and the standard time is 5.52 minutes after accounting for contingency allowance. The allowances of personal, fatigue, and delay are included to factor in the variation in individual performance due to factors such as personal factors, fatigue, and delays. By accounting for these factors, the organization can better estimate the actual time required to perform the task and plan accordingly.

To know more about the Loan processor, here

https://brainly.com/question/28282877

#SPJ4

you flip a coin three times and observe whether a head or a tail occurs on each flip. the number of outcomes in the sample space for this random phenomenon is:

Answers

you flip a coin three times and observe whether a head or a tail occurs on each flip. the number of outcomes in the sample space for this random phenomenon is 3.

A mathematical method for determining the likelihood of an event occurring is probability. An experiment or activity that involves, for example, tossing a coin, rolling a die, or selecting a card from a deck produces an event.

When comparing the number of choices (such as rolling a two on a die) to the total number of outcomes (six in the case of a die), the probability is determined. Events are the results of a random experiment. The proportion of favorable outcomes to possible outcomes determines a compound event's probability.

Learn more about probability at:

brainly.com/question/30034780

#SPJ4

According to ecological theory, each organism has one place where it will be most successful, called the __________.A) fundamental niche B) microenvironment C) guild D) realized niche

Answers

According to ecological theory, each organism has one place where it will be most successful, called the fundamental niche. According to ecological theory, each organism has one place where it will be most successful, called the fundamental niche.

The fundamental niche refers to the entire range of environmental conditions, such as temperature, humidity, and resource availability, in which a species can potentially survive and reproduce in the absence of biotic interactions such as competition, predation, or disease. In contrast, the realized niche refers to the actual range of environmental conditions and resources in which a species is able to survive and reproduce, taking into account the effects of biotic interactions with other species in the ecosystem. The realized niche is often narrower than the fundamental niche, due to competition and other biotic interactions that limit a species' ability to exploit all of the available resources and environmental conditions.

Learn more about resource here:

https://brainly.com/question/28605667

#SPJ11

According to ecological theory, each organism has one place where it will be most successful, called the fundamental niche. According to ecological theory, each organism has one place where it will be most successful, called the fundamental niche. So the correct option is A .

The fundamental niche refers to the entire range of environmental conditions, such as temperature, humidity, and resource availability, in which a species can potentially survive and reproduce in the absence of biotic interactions such as competition, predation, or disease. In contrast, the realized niche refers to the actual range of environmental conditions and resources in which a species is able to survive and reproduce, taking into account the effects of biotic interactions with other species in the ecosystem. The realized niche is often narrower than the fundamental niche, due to competition and other biotic interactions that limit a species' ability to exploit all of the available resources and environmental conditions.

Learn more about resource here:

brainly.com/question/28605667

#SPJ4

for a firm in a perfectly competitive industry group of answer choices the demand curve is unitary elastic throughout. the price elasticity of demand is zero.

Answers

In a perfectly competitive industry, the demand curve is typically assumed to be horizontal or perfectly elastic. This means that the price elasticity of demand is infinite, indicating that consumers are highly responsive to changes in price.

However, in the scenario you presented where the demand curve is unitary elastic throughout, this means that the price elasticity of demand is exactly equal to 1. This indicates that consumers are still responsive to price changes, but the response is proportionate to the change in price. In terms of the firm's pricing strategy, it would need to be mindful of how changes in price will impact its market share within the group of competitors.
In a perfectly competitive industry, for a firm, the demand curve is characterized by having a price elasticity of demand equal to infinity (not zero or unitary elastic). This is because the firm is a price taker and faces a horizontal demand curve at the market-determined price. In other words, the firm can sell any quantity of its product at the given market price without affecting the price itself.

For more such questions on competitive

https://brainly.com/question/30426995

#SPJ11

An investor owns a portfolio, consisting of a long strip position and a short strap position. The options for the strip and strap positions have the same underlying stock, same strike price and maturity. At maturity, the payoff of this porfolio is similar to
Select one:
a. a short call option
b. a short collar
c. a short forward contract on the share
d. a short bear spread
e. a short put option

Answers

An investor owns a portfolio, consisting of a long strip position and a short strap position. The options for the strip and strap positions have the same underlying stock, same strike price and maturity, the payoff of this portfolio is similar to a short put option.

Here, correct option is E.

A strip and a strap are both option strategies that involve a combination of long and short positions. A strip involves buying a call option and selling a put option on the same underlying stock, while a strap involves buying a call option and buying a put option.

The payoff of this portfolio at maturity is similar to a short put option. This is because the value of the portfolio will decrease if the underlying stock price rises and increase if the underlying stock price falls. In other words, the investor will benefit from the decrease in the underlying stock price. Therefore, correct option is E.

know more about portfolio here

https://brainly.com/question/31528207#

#SPJ11

Other Questions
The Golf King Driving Range is installing a huge net to catch long golf drives. The poles to hold the net up are 50 feet high. The contractor needs to run a wire from the top of the pole to the ground to keep the poles and the net secure. This wire is called a guy wire. a. If the guy wire runs from the top of the pole to a point on the ground 22 feet from the base of the pole, how long must the guy wire be? Round up to the next highest foot. b. What is the slope of the guy wire, expressed as a fraction? Jared Lazarus has just been named the new chief executive officer of BluBell Fitness Centers, Inc. In addition to an annual salary of $580,000, his three-year contract states that his compensation will include 19,000 at-the-money European call options on the company's stock that expire in three years. The current stock price is $59 per share and the standard deviation of the returns on the firm's stock is 55 percent. The company does not pay a dividend. Treasury bills that mature in three years yield a continuously compounded interest rate of 5.4 percent. Assume that the annual salary payments occur at the end of the year and that these cash flows should be discounted at a rate of 13 percent Use the Black-Scholes model to calculate the value of the stock options. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Determine the total value of the compensation package on the date the contract is signed. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock options Compensation package Why would a war between Mexico and the United States matter to Germany? Solve. 2,412 3. Explain how you know your answer is reasonable. your friend linda comes to you with a personal problem. which of the following behaviors should you avoid? question 11 options: a) saying she is really at fault for her own problems b) paraphrasing her statements into your words c) pauses longer that a couple of seconds d) asking open-ended questions The greatest biodiversity would be in an ecosystem with the same number of species as other ecosystems but which hasA) more consumers species than producer species.B) a single dominant species.C) several dominant species in intense competition with each other.D) no dominant species. most interstellar hydrogen atoms emit only radio waves at a wavelength of 21cm, but some hydrogen clouds emit profuse amounts of visible light. what causes this difference? which of the following statements is true of project charters? group of answer choices they are important mechanisms for establishing team commitment to a project and a sense of ownership over the project. they encapsulate a project's mission and articulate exact and measurable goals for the project. they estimate the resources required, the development time schedule, and the results that will be achieved. they provide a tool for evaluating a team's performance in meeting objectives by providing a set of performance benchmarks to which the team's performance can be compared. For last year Company X had sales income of 55.2 million, costof sales of 24.2 million, distribution costs of 5.1 million,administration costs of 1.9 million and finance costs of 1.0milli consider the market for books. what would happen to the equilibrium price and quantity of books if consumer incomes rise? (assume that books are a normal good.) with gorbachev's ascent to power in the ussr, many countries of the communist bloc echoed the new reform impulses from moscow. ultimately, all of these east and central european counties began a wave of revolutions to replace their old, pro-soviet governments. which of the countries listed below executed their communist dictator? Which economic trend has Russia experienced in recent years? Question 2 options: declining investment in fixed capital and a falling GDP declining investment in fixed capital and a rising GDP increasing investment in fixed capital and a falling GDP increasing investment in fixed capital and a rising GDP all but three states have enacted some type of medical tort reform, which generally caps the amount of noneconomic damages an injured plaintiff can recover in a lawsuit. True or false? an electromagnetic wave has a total electric field strength of 1,000,000 n/c. what is the total energy density state the most specific name of these quadrilateral...50 points Sarah wants to save $1600 so she can spend it on a summer vacation. She plans to work no more than 20 hours per week. Her budget for April, 2023 is shown below. a) What advice would you give her if her goal is to save this amount of money by the end of June, 2023? b) List below her adjusted income and expenses over this period of time. a 1200 kg car is traveling at 25 m/s into the rear of a stopped truck that has a mass of 2500 kg and they stick together. what is the speed of the cars after the collision ? modern marketers use blank to focus how they approach their customers and market their products. multiple choice question. data analytics supply chains customer-to-customer marketing human resources an important characteristic of the food-foraging society is its Dan did 3/11 a load of laundry on Saturday 3/4 on Wednesday and 3/10 on Sunday the first load was 2/5 colored clothes How many loads of laundry did Dan do in total.