Business, 30.03.2020 23:49 tori6886

Suppose you can receive an interest rate of 5 percent on a certificate of deposit (CD) at a bank that is charging borrowers 10 percent on new car loans. Which one of the following choices does not explain why you might be unwilling to loan money directly to someone who wants to borrow from you to buy a new car, even if that person offers to pay you an interest rate higher than 5 percent?

A. Your risk will be higher when the funds are not diversified among different investment alternatives.

B. Your funds would not be liquid.

C. You are better at assessing risks than the usual financial institutions.

D. You have to spend time and incur expense to determine whether or not the borrower is likely to repay the loan.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 02:10

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u.s. banks that cannot borrow elsewhere governments in developing countries during currency crises u.s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u.s. economy (the money supply), the federal reserve will government bonds.

Answers: 1

Answer

Business, 22.06.2019 19:50

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:

Answers: 1

Answer

Business, 22.06.2019 20:50

Barbara flynn is in charge of maintaining hospital supplies at general hospital. during the past year, the mean lead time demand for bandage bx-5 was 65 (and was normally distributed). furthermore, the standard deviation for bx-5 was 6. ms. flynn would like to maintain a 90% service level.refer to the standard normal table for z-values.a) what safety stock level do you recommend for bx-5? safety stock=)what is the appropriate reorder point? reorder point=

Answers: 1

Answer

Business, 23.06.2019 05:30

What are some examples of types of investments on the part of manufactures that result in growth? how does this improve a nation's standard of living?

Answers: 3

Answer

You know the right answer?

Suppose you can receive an interest rate of 5 percent on a certificate of deposit (CD) at a bank tha...

Questions