100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
D076 Unit 3 exam questions and answers 2024. $15.49   Add to cart

Exam (elaborations)

D076 Unit 3 exam questions and answers 2024.

 9 views  0 purchase
  • Course
  • D076
  • Institution
  • D076

D076 Unit 3 exam questions and answers 2024.

Preview 2 out of 9  pages

  • August 21, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • D076
  • D076
avatar-seller
BRAINBOOSTERS
D076 Unit 3 exam
questions and answers
2024
What is the term for the percentage of the
principal that a lender charges a borrower for the
use of assets? - answer Interest rate


How is the interest rate expressed? - answer as a
percentage


What is the main purpose of charging interest? -
answer It allows borrowers to pay to use the assets
of another entity to accomplish their own goals.


What is a component of the required rate of
return? - answer Opportunity cost


Why would a long-term investment require a
higher rate of return? - answer There is greater
risk involved and a higher opportunity cost.

, You just inherited $25,000 from a long-lost
relative. You decide to put the money in a savings
account for the time being. What would be
considered an opportunity cost of putting the
money in savings? - answer Buying a brand new
car


Today, he pulled out $15,000 from his account to
buy the car, but the price of the car is now
$16,562. Which component of the required rate of
return did Ahmed forget to consider? - answer
Inflation


Why is built-in inflation linked to adaptive
expectations? - answer Workers want higher wages
to keep their standard of living as prices increase,
which pushes the prices even higher.


What is the compensation for risk given to
investors called? - answer Risk Premium


Which type of interest rate is the rate at which
invested money grows for a certain period time? -
answer Nominal Rate


Which component of an interest rate is an indicator
of inflation and opportunity cost? - answer Risk
Free Rate

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

62890 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$15.49
  • (0)
  Add to cart