Lenders recognize that by having an interest in collateral they can reduce losses if the borrowing firm defaults, ________
A) and the presence of collateral reduces the risk of default
B) but the presence of collateral has no impact on the risk of default
C) therefore lenders prefer to lend to customers from whom they are able to demand collateral
D) therefore lenders will impose a higher interest rate on unsecured long-term borrowing
B
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Abdul, a manager at Chrysum Corp, was assigned the task of overseeing the operations in a foreign office for a week. Before leaving the country, Abdul recorded a message on his phone to inform callers that he was away from home and would return their calls when he returned. In this scenario, the technology used by Abdul is an example of:?
A) text messaging.? B) ?social networking. C) ?cellphone communication. D) ?voice mail communication.
You can deposit your savings at the Darlington National Bank, which offers to pay 12.6 percent interest compounded monthly, or at the Barlett Bank, which will pay interest of 11.5 percent compounded daily. (Assume 365 days in a year
) Which bank offers the higher effective annual rate? A) Darlington National Bank B) Barlett Bank C) Both banks offer the same effective rate. D) Cannot be determined from the information provided. E) Workable only if the banks use the same compounding period.
When an individual entry is posted from the combination journal to a ledger account, what information is entered in the "Post. Ref." column of the ledger account?
A. the letters "CJ" B. the letters "CJ" and the page number C. the letters "CJ" and the invoice number D. the letters "CJ" and the year
Generally, as income rises, the average propensity to consume
a. stabilizes. b. drops to zero. c. increases. d. becomes erratic. e. decreases.