Homework Answers
Answer 5) 3 c of lending include character, capital, and capacity. Collateral is not a part of this group. Hence option c is the correct answer.
Answer 50) According to Fisher equation,
Real rate of interest= nominal rate of interest - expected inflation. Lower expectations about inflation level would limit the decline in the level of real rate of interest.
Whereas rest of options are pushing inflation down. Option A is the correct answer.
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5) Which of the following is not one of the "3 C's of Lending?" B) capacity...
2. Please identify which of the basic Cs of lending character, capacity, cash, collateral, conditions, and...
2. Please identify which of the basic Cs of lending character, capacity, cash, collateral, conditions, and control applies to each of the loan factors listed here: Use the Table below with the 6 C's as the column headers to place each of the following under their correct column: Insurance coverage Asset liquidation Competitive climate for customer's product Inflation outlook Credit rating Adequate documentation Corporate resolution Changes in accounting standards Liquid reserves Written loan policy Asset specialization Coverage ratios Driver's license...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C.prices on average are rising, although some particular prices may be falling. D. real incomes are rising 36. The annual rate of inflation can be found by subtracting A. the real income from the nominal income. B. last year's price index from this year's price index C. this year's price index from last year's price index and...
11) Which of the following typically has the lowest yield? A) 5-year AAA corporate bond B)...
11) Which of the following typically has the lowest yield? A) 5-year AAA corporate bond B) 2-year U.S. Treasury note C) Fed Funds D) 3-month U.S. Treasury bill 12) Debt instruments are also called: A) adjustable notes B) credit instruments C) perpetual securities D) interest rate swaps 13) Which of the following characteristic is NOT fixed on a coupon bond? A) Current yield B) Coupon rate C) Maturity D) Par amount 14) If you purchased a U.S. Treasury at a...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Which of the following statements describes a "Capacity' strength or weakness for a company in the...
Which of the following statements describes a "Capacity' strength or weakness for a company in the 5 Cs of credit framework? There are assets available to secure the loan in the event of a default. The net profit margin ratio is high. There is a large potential customer base in this industry. OOO The company has sufficient equity to withstand a downturn. Which of the following tools or methods is used to assess the general business environment? MAST framework PEST...
5. Suppose in the United States economy, the rate of money growth for the current year is 8 percent, the velocity of mon...
5. Suppose in the United States economy, the rate of money growth for the current year is 8 percent, the velocity of money in circulation is constant, and inflation is expected to be about 2 percent over the current year. What is the short run economic growth rate? A) 16 percent B) 10 percent C) 8 percent D) 6 percent E) 4 percent 8. The fisher effect matters in terms of inflation given that A) borrowers agree to loan terms...
1. Which of the following would shift the short-run aggregate supply curve to the right? A chan...
1. Which of the following would shift the short-run aggregate supply curve to the right? A change in the law requiring overtime pay for anyone working more than 30 hours a week A reduction in the minimum wage An increase in oil prices An increase in payroll taxes 2. The fact that investors can always hold cash creates: an upward bound on nominal interest rates. negative nominal interest rates. a problem for monetary policymakers when the short-term interest rates approach...
1) Present value calculations: A) are appropriate for investments in the same time period B) are...
1) Present value calculations: A) are appropriate for investments in the same time period B) are accurate only in a low-rate environment C) provide comparisons for investments when inflation is known D) provide a common reference for measuring investments at different maturities 2) Compounding refers to: A) the calculation of interest rates after allowing for the effect of taxes B) the process of earning interest on interest of an investment C) the repayment of both interest and principal at the...
9. A problem using the general monetary model Suppose we use the general model, in which...
9. A problem using the general monetary model Suppose we use the general model, in which real money demand is L(i)rand we assume that both relative PPP (RPPP) and uncovered interest parity (UIP) hold. Consider two countries, Australia (A) and New Zealand (NZ). Imagine in a particular year that Australia had slower real income growth (2%) and NZ had higher real income growth (5%). Suppose the central bank of A permitted the nominal money supply to grow by 4% per...
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of...
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of these fiscal policy measures will NOT increase aggregate supply? A. B. C. D. increased infrastructurespending reduced taxes on businesses investment tax credits increase in business regulation Aggregate Ouput C) ff there is a decrease in inputprices, the short-runageregate supply cuve will shift from SRAS to and theprice...
2. Please identify which of the basic Cs of lending character, capacity, cash, collateral, conditions, and control applies to each of the loan factors listed here: Use the Table below with the 6 C's as the column headers to place each of the following under their correct column: Insurance coverage Asset liquidation Competitive climate for customer's product Inflation outlook Credit rating Adequate documentation Corporate resolution Changes in accounting standards Liquid reserves Written loan policy Asset specialization Coverage ratios Driver's license...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C.prices on average are rising, although some particular prices may be falling. D. real incomes are rising 36. The annual rate of inflation can be found by subtracting A. the real income from the nominal income. B. last year's price index from this year's price index C. this year's price index from last year's price index and...
11) Which of the following typically has the lowest yield? A) 5-year AAA corporate bond B) 2-year U.S. Treasury note C) Fed Funds D) 3-month U.S. Treasury bill 12) Debt instruments are also called: A) adjustable notes B) credit instruments C) perpetual securities D) interest rate swaps 13) Which of the following characteristic is NOT fixed on a coupon bond? A) Current yield B) Coupon rate C) Maturity D) Par amount 14) If you purchased a U.S. Treasury at a...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Which of the following statements describes a "Capacity' strength or weakness for a company in the 5 Cs of credit framework? There are assets available to secure the loan in the event of a default. The net profit margin ratio is high. There is a large potential customer base in this industry. OOO The company has sufficient equity to withstand a downturn. Which of the following tools or methods is used to assess the general business environment? MAST framework PEST...
1) Present value calculations: A) are appropriate for investments in the same time period B) are accurate only in a low-rate environment C) provide comparisons for investments when inflation is known D) provide a common reference for measuring investments at different maturities 2) Compounding refers to: A) the calculation of interest rates after allowing for the effect of taxes B) the process of earning interest on interest of an investment C) the repayment of both interest and principal at the...
9. A problem using the general monetary model Suppose we use the general model, in which real money demand is L(i)rand we assume that both relative PPP (RPPP) and uncovered interest parity (UIP) hold. Consider two countries, Australia (A) and New Zealand (NZ). Imagine in a particular year that Australia had slower real income growth (2%) and NZ had higher real income growth (5%). Suppose the central bank of A permitted the nominal money supply to grow by 4% per...
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of these fiscal policy measures will NOT increase aggregate supply? A. B. C. D. increased infrastructurespending reduced taxes on businesses investment tax credits increase in business regulation Aggregate Ouput C) ff there is a decrease in inputprices, the short-runageregate supply cuve will shift from SRAS to and theprice...
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