Why might you be willing to make a loan to your neighbor by putting funds in a
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
The reason for this is that the costs of lending the loan to neighbor are high legal fees ...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Economics of Money, Banking and Financial Markets
ISBN: 978-0321598905
9th Edition
Authors: Frederic S. Mishkin
Question Posted:
Students also viewed these Banking questions
-
A bank is planning to make a loan of $5,000,000 to a firm in the steel industry. It expects to charge a servicing fee of 50 basis points. The loan has a maturity of 8 years with a duration of 7.5...
-
An institutional lender is willing to make a loan for $1 million on an office building at a 10 percent interest (accrual) rate with payments calculated using an 8 percent pay rate and a 30-year loan...
-
Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and a face value of $1,000?
-
Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the...
-
List and explain the considerations involved in ting pattern materials.
-
Proponents of critical perspectives research believe that mainstream accounting research relies on assumptions that are considered in a vacuum, which does not mirror reality. Team Debate: Team 1:...
-
A random experiment can result in one of the outcomes \(\{a, b, c, d\}\) with probabilities \(0.1,0.3,0.5\), and 0.1 , respectively. Let \(A\) denote the event \(\{a, b\}, B\) the event \(\{b, c,...
-
Why has the Internet lowered the switching costs for consumers?
-
A company records items on the cash basis throughout the year and converts to an accrual basis for year-end reporting. Its cash-basis net income for the year is $70,000. The company has gathered the...
-
Owen and Sonja Cornell are married. They are the parents of two children: Kirsten (born on July 1, 2000) and Ingrid (born on May 17, 2009). Ingrid does not have any income. Kirsten (SIN 805 232 329)...
-
In a world without information and transaction costs, financial intermediaries would not exist. Is this statement true, false, or uncertain? Explain your answer.
-
How does risk sharing benefit both financial intermediaries and private investors?
-
In Exercises 1316, (a) Find a piecewise smooth parametrization of the path C, and (b) Evaluate c (2x + 3y) ds. C: counterclockwise around the triangle with vertices (0, 0), (1, 0), and (0, 1)
-
A distinguishing feature of todays digital technology is that it is characterized by zero (or near-zero) marginal costs. Once youve made the investment needed to create a digital good, it costs next...
-
Two small pith balls, initially separated by a large distance, are each given a positive charge of \(5.0 \mathrm{nC}\). By how much does the electric potential energy of the two-ball system change if...
-
As one of the pioneers in the low cost airline market, easyJets business model includes some core values: Safety Our number one value, sitting at the core of everything we do. Pioneering We...
-
The remuneration system that is applied in healthcare organizations in several countries (e.g. Australia, the USA, Switzerland, Spain and Italy) enables ABC profitability analysis to be applied in...
-
Allan Stratton is a cost management consultant with over 35 years of experience, who shares the benefit of his experience providing tools and resources via the internet. In one of his articles he...
-
What are the duties that an architect owes to his or her clients?
-
The Zwatch Company manufactures trendy, high-quality moderately priced watches. As Zwatch's senior financial analyst, you are asked to recommend a method of inventory costing. The CFO will use your...
-
Define and distinguish between future value and present value.
-
Interest rates were lower in the mid-1980s than they were in the late 1970s, yet many economisis have commented that real interest rates were actually much higher in the mid-1980s than in the late...
-
Interest rates were lower in the mid-1980s than they were in the late 1970s, yet many economisis have commented that real interest rates were actually much higher in the mid-1980s than in the late...
-
Explain why you would be more or less willing to buy a share of Microsoft stock in the following situations: a. Your wealth falls. b. You expect the stock to appreciate in value. c. The bond market...
-
Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to...
-
Describe the operating activities of each company noting similarities and difference between COCA COLA & PEPSICO. Identify two economy wide factors and industry wide factors that could impact on the...
-
The trial balance for a company listed the following account balances at December 31, Year 1, the end of its fiscal year: cash, $36,000; accounts receivable. $31,000; Inventory, $45,000; equipment...
Study smarter with the SolutionInn App