Everything else the same, the higher the expected rate of inflation, _____.
A. the lower the loss in purchasing power of investors
B. the higher the required rate of return on an investment
C. the lower the maturity premium required by the investors
D. the higher the money supply in the economy
E. the lower the tax rate in the economy
Answer: B
You might also like to view...
Which of the following would be a Type II subsequent event?
a. Information becomes available that provides evidence about the valuation of an estimate or reserve that had been accrued at year end. b. A sale of inventory below carrying value provides evidence that the net realizable value was less than cost at year end. c. A stock dividend or split that takes place during the subsequent period should be disclosed. In addition, earnings-per-share figures should be adjusted to show the retroactive effect of the stock dividend or split. d. A material change occurs in the value of investment securities after the balance sheet date.
Which of the following statements is true about cancellation of an insurance policy?
A. Insurance contracts contain a reinstatement clause that allows an insured to reinstate a cancelled policy. B. Insurers that cancel a contract need not return the unearned portion of any premiums paid by the insured. C. Insureds who terminate a contract are entitled to a return of the premium on a short-rate basis. D. Insurers can cancel insurance contracts by surrendering the policy to the insured.
Describe a residual plot
What will be an ideal response?
The credit department of Mega-Mart calls Nora at work about an overdue bill. Nora's employer objects. Mega-Mart continues to call Nora at work. This is a violation of
A. no federal law. B. the Fair and Accurate Credit Transactions Act. C. the Fair Debt Collection Practices Act. D. the Truth-in-Lending Act.