Lenders tend to offer lower interest rates to borrowers with high credit scores and higher interest rates
Question:
Lenders tend to offer lower interest rates to borrowers with high credit scores and higher interest rates to borrowers with low credit scores. What does this imply about lenders' willingness to take on risk?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
Just like individual people businesses are a...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Explain why municipal bonds can offer lower interest rates than equally risky corporate bonds.
-
Adjustable-rate mortgages offer lower interest rates than fixed-rate mortgages, yet ARMs are often viewed as more risky than fixed-rate mortgages. Why is this the case?
-
Multiple Choice Questions: 1. In a recession, appropriate monetary policy would tend to be for the Fed to _______________ bonds to _______________AD. a. Buy; increase. b. Buy; decrease. c. Sell;...
-
Learning by doing is an integral part of the course experience albeit online. The intent of this assignment is for you to demonstrate your ability to apply course content. Thus in the Marketing...
-
Anderson Company issued $70,000 of 10-year, 9% bonds payable on January 1, 2018. Anderson Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line...
-
Presented below are the financial statements of Rajesh Company. Rajesh Company Comparative Statements of Financial Position December 31 Rajesh Company Income Statement For the Year Ended December 31,...
-
The Oahu Company manufactures electronic subcomponents that can be sold directly or can be processed further into plug-in assemblies for a variety of intricate electronic equipment. The entire output...
-
a. Answer (a) through (c) from Exercise 11.1 using the results in column (3). b. Sketch the predicted probabilities from the probit and linear probability in columns (1) and (3) as a function of...
-
How does the figure help verify the triangle inequality theorem? 15 OA. by showing that a triangle cannot be formed when the sum of the lengths of two sides equals the length of the third B. by...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Consider the following scenarios. For each scenario, determine whether a risk averse person will definitely choose Option A, definitely choose Option B, be indifferent between Options A and B, or...
-
Many individuals prefer to have insurance (health insurance, car insurance, etc.) rather than not, even if the expected value of their wealth is higher without insurance. What does this imply about...
-
A company reports the following operating cash flows on its statement of cash flows (in millions): Required Identify whether the following account balances increased or decreased during the year: (a)...
-
Identify the factors in the following expression: Answer -7x7y+
-
Solve for the unknown variable. In(x 10) In(x) = 7 x =
-
Read the following case study and answer the questions that follow: Ideas and trends converge from time to time in a way that suggests the possible shape of the future. Sometimes I think I can...
-
Why is intercultural literacy needed in today's world? How can the definitions of communication and culture be used to foster this literacy? How is the language used to describe a culture, such as...
-
1 Simplify. 3-10x+25x x3-5x2
-
Selected operating information on three different companies for a recent year is shown below: Required: For each company, state whether the company would have a favourable or unfavourable volume...
-
During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts...
-
Suppose a cafe owner wants to switch to automatic espresso machines instead of paying baristas to pack the coffee grounds by hand. The machines are twice as effective as a human; the fixed cost per...
-
Leo runs a bicycle repair shop. He recently exam-ined information on wage and employment levels and noted that he employs the same number of workers today that he employed in 2009. How-ever, wages...
-
Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly wage for an employee is $18 per hour. An...
-
q1: q2: help and explain The Museum of History is preparing for its annual appreciation dinner for contributing members. Last year, 650 members attended the dinner. Tickets for the dinner were $26...
-
This is part 2. The following information is from the Oregon Revised Statutes, Chapter 673, for Tax Consultants and Tax Preparers. Click the following link to access the reading material for part 2...
-
The manager explained that this practice created a pool of money that could be refunded to departments when they were having financial difficulties. It's also known that department managers receive a...
Study smarter with the SolutionInn App