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
Another question on Business
Business, 21.06.2019 16:10
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?
Answers: 2
Business, 23.06.2019 20:10
Imagine you want to convince the local school board that eliminating elective courses for struggling students is a bad idea. which appeal would most likely move this audience to suport your cause?
Answers: 3
Business, 23.06.2019 22:00
What is obscene is now determined by one uniform national standard. true or false?
Answers: 1
Business, 23.06.2019 22:20
Rose bought a mattress for her guest bedroom for $100, on sale. the mattress is nonreturnable. although everyone who has slept on the mattress said it was very uncomfortable, rose will not get rid of it because she spent $100 on it. what psychological factor associated with behavioral economics explains rose's behavior?
Answers: 2
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
Mathematics, 31.03.2020 03:43
Mathematics, 31.03.2020 03:43
Mathematics, 31.03.2020 03:43
English, 31.03.2020 03:43
Geography, 31.03.2020 03:43
