Which is better, a fixed-rate loan or a variable-rate loan?
A) A fixed-rate loan, because the lender bears the risk that interest rates will go up
B) A fixed-rate loan, because they generally cost less than variable-rate loans
C) A variable-rate loan, because they generally cost less than fixed-rate loans
D) A variable rate loan, because the lender bears the risk that interest rates will go up
E) Neither is necessarily better; the choice illustrates the "risk and return go hand in hand" principle.
Answer: E
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A. hollow B. matrix C. spine D. hybrid E. mechanistic
Which of the following is true of single-segment pricing strategy?
A) A single-segment pricing strategy is most likely to be employed during the decline stage of the product life-cycle. B) A single-segment pricing strategy is a cost-based pricing strategy rather than a value-based one. C) The company does not base the price of a product on the savings that customers realize over the life of the product. D) The main goal of single-segment pricing is to lower the cost to potential customers in order to attract their purchase volume. E) A single-segment pricing strategy overlooks both competitor's offerings and price sensitivity.
EDI is the inter-company exchange of computer processible business information in standard format
Indicate whether the statement is true or false
Which type of risk is based on the financial integrity of a bond issuer?
A) liquidity risk B) call risk C) default risk D) interest rate risk