What is Interest Rate Price Risk
Interest Rate Price Risk: The risk which occurs for bond owners from fluctuating interest rates is termed as interest rate risk. How much interest rate risk a bond has based on how sensitive its price is to interest rate modifications.
The income elasticity of demand can be approximately computed if we identify the percentage change within the: (1) quantity of a good demanded yielded by a specified absolute change in income. (2) price generated through a specified change in quantity
HoloIMAGine has patented a holographic technology which creates 3-D photography obtainable to consumers. So HoloIMAGine’s: (w) lowest possible average total cost arises at precisely the output where profit is maximized. (x) market supply curve is the same to its
Into the long run, interest rates depend LEAST upon the: (1) premiums needed to induce savers to delay consumption. (2) premiums necessary to induce wealth holders to sacrifice liquidity. (3) productivity of new capital. (4) demands and supplies of lo
For Cournot’s Spring Water the demand is relatively price elastic at: (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e. Q : Capital receipts Why borrowing is Why borrowing is treated as capital receipts? Answer: Because it rises the liability of government.
Why borrowing is treated as capital receipts? Answer: Because it rises the liability of government.
When households become increasingly willing to defer current consumption in order that they can enjoy greater future consumption, in that case the: (1) interest rate rises. (2) equilibrium investment level rises. (3) present value of
Economic profits are not: (1) a surplus of revenues over opportunity costs. (2) quite similar to pure economic rents from society’s viewpoint. (3) zero in a purely competitive economy along with no uncertainty and zero transaction costs. (4) dif
A person’s wage income into excess of which that would be received by accepting the next best optional use of his or her talents is: (1) an economic rent. (2) a transfer payment. (3) an interest premium. (4) a salary bonus. (5) nominal wages.
The burden of an excise (i.e., per unit) tax would be divide roughly fifty by fifty on consumers and suppliers of the taxed good within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.
Pure economic profits do not arise due to: (w) monopoly power. (x) capital owners’ receipts of normal accounting returns to investment. (y) risk and uncertainty. (z) entrepreneurial innovation. How can I solv
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