Question: Explain how the following events would likely affect the relevant interest rate. a. A major bond-rating agency has improved the risk rating of a developing

Explain how the following events would likely affect the relevant interest rate.
a. A major bond-rating agency has improved the risk rating of a developing nation.
b. The government has passed legislation requiring bank regulators to significantly increase the paperwork required when a bank makes a loan.

Step by Step Solution

★★★★★

3.49 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a If the risk is higher then the rate of interest charged will be higher Thus if ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

985-B-E-M-E (6961).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

A company changed its strategic direction and undertook an aggressive growth strategy, acquiring a significant amount of new assets early in the current fiscal year. The purchase of these assets was...

The following is a description of various factors that affected the operations of Lincoln Federal Savings and Loan, a California savings and loan (S&L). It was a subsidiary of American Continental...

Explain how the following items individually and collectively affect the overall level of security provided by using a password as an authentication credential. a. Length. b. Complexity requirements...

Due to the changing environment and external triggers, contingency planning is necessary. What qualities make a future issue a ?trigger?? Consider you are on the strategic planning team for a soft...

Through the use of strategic alternatives, companies may compete in a marketplace, achieve its vision, or if no vision has been articulated, decide where it might go and what it might achieve....

All views expressed in this paper are those of the authors and do not necessarily represent the views of the Hellenic Observatory or the LSE George Alogoskoufis Greeces Sovereign Debt Crisis:...

what is the value of the Antamina project, based on the estimates in the case? INTRODUCTION It was July 15, 1998, and the finance committee of Compania Minera Antamina S.A. (CMA) had just finished...

2006EHR Assignment - Workplace Audit / Inspection Introduction (introduction & Presentation worth 5 Marks) Recommend 2 paragraphs Paragraph 1 - Provide overview of workplace; what it is, where it is,...

Need help with these multiple choice questions for internal audit final exam. Due in 2 hours. QUESTION 1 RsQ_004Without management direction and assumption of responsibility, it would be...

What are intermediate targets? How do they differ from monetary policy goals? List the two principal types of intermediate targets that the Bank of Canada has used.

What evidence could an auditor seek to determine if an organization has adopted a structured approach to managing changes to the QMS? 2) What evidence could an auditor seek to determine if an...

The founder of Gearhead hosts a program called "How to Run." This program is an example of the founder's mission for the store. Why did he originally start the store?

Why was a risk management plan considered unnecessary?

Ticketmaster Corp. operates a Web site that allows customers to buy tickets to concerts, ball games, and other events. On the sites home page are instructions and an index to internal pages (one page...

1-A Equipment Co. signed a sales order to lease Accware 10 User NT software, which is made and marketed by ICode, Inc. Just above the signature line, the order stated: Thank you for your order. No...

America Online, Inc. (AOL), provided e-mail service to Walter Hughes and other members under a click-on agreement titled Terms of Service. This agreement consisted of three parts: a Member Agreement,...

The specific gravity of coal depends mainly on its _ _ _ _ _ _ _ _ _ _ content. Carbon Volatile matter Ash Moisture

(22) Next you will perform a forward-backward stepwise regression. For models with interactions, it is important to remember that if an interaction between two predicting variables is included in the...

In a coffee vending machine, coffee is dispensed into a disposable cup before coffee creamer is added. The amount of time it takes to dispense coffee from the machine is represented by a mean time of...