All categories

2 years ago

Which of the following statements is(are) true:

Business

1 answer:

Rudiy272 years ago

5 0

Answer:

Neither I nor II are correct

Explanation:

I. The nominal interest rate is also referred to as the APR or the stated rate.

This statement is not true because nominal interest rate is different from the annual percentage rate (APR).

A nominal interest rate is basically the interest rate is charged by banks or other financial institutions on a loan, and other expenses on the loan are not added to the interest when interest rate is being determined.

On the other hand, APR is nominal interest rate plus other expenses incurred in other to get the loan.

Therefore, nominal interest rate is usually lower than the APR. This makes them to be different.

II. You should use the nominal interest rate to compare two alternative investments/loans with different compounding periods.

This statement is not correct.

The interest rate is used to to compare two alternative investments/loans with different compounding periods is the effective interest rate.

The effective interest rate is the actual amount of interest rate that a lender or an investor earned on his loan, investment because of compounding that is done during a specific period of time. The effective annual interest rate is the interest rate that is employed to compare different investment products because, unlike other interest rate, compounded interest are estimated differently by it.

Therefore, Neither I nor II are correct.

I wish you the best.

You might be interested in

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we woul

erma4kov [3.2K]

In the market for personal computers, we would expect the Equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

<h3>What is equilibrium quantity?</h3>

When there is no shortage or surplus of a product on the market, it is said to be in equilibrium quantity.
When supply and demand meet, the amount of an item that consumers want to buy equals the amount supplied by its producers.
The equilibrium price is the only price at which consumers' and producers' plans coincide—that is, the amount consumers want to buy of the product, quantity demanded, equals the amount producers want to sell, quantity supplied.
Assume there is an increase in both supply and demand for personal computers.
The Equilibrium quantity would then rise in the market for personal computers, while the change in the equilibrium price would be ambiguous.

Therefore, in the market for personal computers, we would expect the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

Know more about equilibrium quantity here:

brainly.com/question/22569960

#SPJ4

The correct question is given below:

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect the Equilibrium quantity to ______ and the change in the equilibrium price to be __________

8 0

1 year ago

Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate

gayaneshka [121]

Answer:

The correct answer is C

Explanation:

Covered interest arbitrage (CIA), it is an strategy or tool of arbitrage trading, where the investor capitalizes on the rate of interest which is differential among two countries through using the forward contract for eliminate the exposure or cover to exchange the rate risk.

So, because of covered interest arbitrage, the market forces realign the cross exchange rate among two countries grounded on spot exchange rates of two currencies.

8 0

2 years ago

Module Ten: Text Questions

Andru [333]

The last thing i purchesd was a yen inch reborndoll.the technique i was impacted by was all the people that were bying them the strategies i used were is 1.is this doll really worth it 2. what is it made of and 3. is it water proof . the things i will do differently next time are :1. look for a bigger doll 2. look for clothes it can wear.&3. pick a different gender

7 0

2 years ago

Compare and contrast the U.S. Constitution and the Arizona Constitution. Discuss three findings that account for the significant

marysya [2.9K]

Development, Structure and powers of U.S constitution and Arizona constitution have a huge comparison.

<u>Explanation: </u>

Unlike the United States Constitution, which was embraced in 1787, that wasn't until 1912 that perhaps the Arizona Constitution was accepted, leading to the creation of the 48 states

The common terms,' we the people' all constitutions begin with, but include many different things. After all, there were certain differences between one condition and another for a set of fifty.

The Arizona Constitution states that the legislature must be split into three parts-Legislative, Legislative and executive–which are not applicable to the United States Constitution

Many think of forms to deny or expel someone from office. They will enforce them in both Constitutions. All define the qualifications for their office if they would like to run for office. Another connection that I found was apparent but significant nonetheless.

They both mention the theme of religious liberty, one of the most valuable values in our society. Eventually, both inspire their lawmakers to negotiate with them.

5 0

2 years ago

According to the Porter (1996) article on Strategy, if there were only one ideal position in a market segment, there would be no

Brilliant_brown [7]

Answer:

True

Explanation:

The whole purpose of developing a strategy is to create unique and valuable market position, but f there was only one good market position, then every company would just try to reach that position. Through their own particular strategy, each company must try to differentiate themselves from the competition and hopefully reach the intended market position.

3 0

2 years ago