Homework Answers
Answer
1 Correct answer is assets to the lenders and liabilities to the borrowers since the promises are to lenders
Loan is the amount of money given of credit by a person who is known as lender and is received by a person who is known as Borrower.
So lender has given the money and has right to receive the money back, so loan is an asset for lender.As asset is something which will generate cash flow in future and loan given will give cash to lender in future when loan term ends.
And borrower has received the money and has an obligation to pay in future. So it is a liability for borrower.
Note: Only 1 question can be answered as per guidelines
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PLEASE !!!)
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1) A borrower who takes out a loan usually has better
information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This
inequality of information is called
A) moral hazard.
B) asymmetric information. C) noncollateralized risk. D)
adverse selection.
2) If bad credit risks are the ones who most actively seek
loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification....
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I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
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