FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A farmer has an income of $500 per season. He applied for a loan for $200. the sanctioning officer calculated the earnings of the farmer

A farmer has an income of $500 per season. He applied for a loan for $200. the sanctioning officer calculated the earnings of the farmer and declared that the farmer saves $150 per season; therefore, the officer was satisfied that the farmer will repay the loan. However, in the final decision, officials rejected the loan request of the farmer. 

Which principle did the officer apply to reject the loan?

Step by Step Solution

★★★★★

3.51 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

The bank will look for the following four principle 1Credit history if the borrower has a bad credit ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Microeconomics

Authors: Jeffrey M. Perloff

8th edition

134519531, 978-0134519531

More Books

Students also viewed these Accounting questions

Question

★★★★★
A poor person who has an income of $1,000 receives $100 worth of food stamps. Draw the budget constraint if the food stamp recipient can sell these coupons on the black market for less than their...

Answered: 1 week ago

Question

★★★★★
Write a detailed on Objectives of competition law covering following topics - Anti-trust laws in Canada and international conventions - The pros and cons of competition law. - Some of the activities...

Answered: 1 week ago

Question

★★★★★
Assume a famer has an accounting period running from January 1 to December 31. Use the following information obtained for the past calendar year accounting period to complete an income statement and...

Answered: 1 week ago

Question

★★★★★
Find the volumes of the solids generated by revolving the regions bounded by the lines and curves about the x-axis. The region between the curve and the x-axis from x = 1/4 to x = 4 y = 1/(2x)

Answered: 1 week ago

Question

★★★★★
An organization has a database server with three disk devices. The accounting and payroll applications share one of these disk devices and are experiencing performance problems. You have been asked...

Answered: 1 week ago

Question

★★★★★
Calculate the income yield, capital gain yield, and rate of total return in each of 2014 and 2015 for Cineplex Inc. shares and PH&N Bond Fund units. Use the data in Tables 9.3 and 9.4. Tables 9.3...

Answered: 1 week ago

Question

★★★★★
What could Jean do to break the Facebook habit?

Answered: 1 week ago

Question

★★★★★
Scrap, job costing. The Morgan Company has an extensive job-costing facility that uses a variety of metals. Consider each requirement independently. Required 1. Job 372 uses a particular metal alloy...

Answered: 1 week ago

Question

★★★★★
The common stock of Buildwell Conservation \& Construction Incorporated (BCCl) has a beta of 0.9. The Treasury bill rate is 4%, and he market risk premium is estimated at 8%. BCCl's capital structure...

Answered: 1 week ago

Question

★★★★★
During a baseball practice session, the cutoff man A executes a throw to the third baseman B. If the initial speed of the baseball is v 0 = 130 ft/sec, what launch angle is best if the ball is to...

Answered: 1 week ago

Question

★★★★★
Seema is looking at an investment to upgrade an inspection line at her plant. The initial cost would be $150,000 with a salvage value of $36,000 after six years. Use the capital recovery formula to...

Answered: 1 week ago

Question

★★★★★
An advantage of the Incremental Model is that Decomposition of the system is easy to read and understand Releases working prototypes in the iterations Integration, systems, and acceptance testing are...

Answered: 1 week ago

Question

★★★★★
Question 2 Real Ltd received an order for 10 race coil-over struts for team Blackout from California. The units were manufactured as Job #525 and passed through three cost centres. Fabrication...

Answered: 1 week ago

Question

★★★★★
Problem 8: A 25 cm diameter pipe carries oil of Sp. Gr. 0.9 at a velocity of 3 m/s. At another section the diameter is 20 cm. Find the velocity at this section and also mass rate of flow of oil.

Answered: 1 week ago

Question

★★★★★
Create new users called andrew leclerck, aya aliyev, and mia sun. Their login names should be andrew-leclerck, aya-aliyev, and m-sun respectively. Create a group called admins with GID 2127. Add...

Answered: 1 week ago

Question

★★★★★
Becker & Smith, CPAs, performs a financial statement review for BAM Markets ( BAM ) . Caroline, the manager on the job, learns that Don, a member of the review team, violated the independence rules...

Answered: 1 week ago

Question

★★★★★
Discuss the advantages and disadvantages of cloud computing.

Answered: 1 week ago

Question

★★★★★
Proposals have been made to ?sail? spacecraft to the outer solar system using the pressure of sunlight, or even to propel interstellar spacecraft with high-powered, Earth-based lasers. Sailing...

Answered: 1 week ago

Question

★★★★★
A firm manufactures boxes of cereal using a fixed proportion production function: One box and one unit (12 ounces) of cereal produce one box of cereal. What is the expansion path? What is the cost...

Answered: 1 week ago

Question

★★★★★
Because a states governor can substantially influence new laws, uncertainty about the outcome of a gubernatorial election may affect whether firms make new investments. Shelton and Falk (2016)...

Answered: 1 week ago

Question

★★★★★
If you spend $4 a day on a latte (in real dollars) for the rest of your life (essentially forever), what is your present discounted value at a 3% interest rate?

Answered: 1 week ago

Question

★★★★★
Compare a schedule/control Gantt chart and a precedence network.

Answered: 1 week ago

Question

★★★★★
Given the operation times below in a two-work-centre flow shop: a. Develop a job sequence that minimizes total idle time at the two work centres. b. Construct a Gantt chart for the activities at the...

Answered: 1 week ago

Question

★★★★★
What is the critical chain method?

Answered: 1 week ago

Previous Question Next Question