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

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Posted Date: August 01, 2016 12:48:29
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