According to the article, why are interest rates on credit cards higher than interest rates on cars or homes?Choose one or more:A. People who use credit cards take more financial risks than people who buy cars or homes.ⒸB. Credit card issuers are londing money that is unsecured.C. Credit card debts are among the first written off when people file for bankruptcy.O D. Credit card debt typically is for a shorter time period than a loan for a car or home.

The primary reason why the interest rates on credit cards are higher than those on car loans or…

According to the article, why are interest rates on credit cards higher than interest rates on cars or homes? Choose one or more: DA People who use credit cards take more financial risks than people who buy cars or homes. OB. Credit card issuers are londing money that is unsecured. C. Credit card debts are among the first written off when people file for bankruptcy. OD. Credit card debt typically is for a shorter time period than a loan for a car or home.

According to the article, why are interest rates on credit cards higher than interest rates on cars or homes? Choose one or more: DA People who use credit cards take more financial risks than people who buy cars or homes. OB. Credit card issuers are londing money that is unsecured. C. Credit card debts are among the first written off when people file for bankruptcy. OD. Credit card debt typically is for a shorter time period than a loan for a car or home.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Note the following information. A line of credit is an agreement between a bank and a borrower by which the borrower can borrow any amount of money (up to a mutually agreed-upon maximum) at any time, simply by writing a check. Typically, monthly simple interest payments are required, and the borrower is free to make principal payments as frequently or infrequently as he or she wants. Usually, a line of credit is secured by the title to the borrower's house, and the interest paid to the bank by the borrower is deductible from the borrower's income taxes.James and Danna Wright did not have sufficient cash to pay their income taxes. However, they had previously set up a line of credit with their bank. On April 15, they wrote a check to the Internal Revenue Service on their line of credit for $10,154. The line's interest rate is 4.125%. (Round your answers to the nearest cent.) (a) Find the size of the required monthly interest payment.$ (b) The Wrights decided that it would be in their…
is meant to simplify you finances. A are typically in the form of second mortgage or personal loans. particularly credit card debt. pays off all or several of your outstanding debts,
Discharge for qualified principal residence indebtedness (QPRI) is: Not likely to trigger cancellation of debt income. When the bank takes the home from the borrower to satisfy the mortgage debt. Available for a second home. A restructuring of a loan that allows the borrower to retain ownership of their home.
Banks may deny creditworthy borrowers loan requests if a. they are non-corporate entities b. they are on late on paying taxes c. the loan is too risky d. they are individuals
Which of the following was NOT a direct and major consequence of the 2007-2009 U.S. Subprime Financial Crisis? a. Small consumer and household savers lost all their money they had in savings accounts due to the failure of many smaller FDIC member banks b. Many people lost their homes when they could no longer make their payments after their subprime mortgage rates reset to a much higher rate after two years c. Lehman suffered a major financial collapse and ultimately was dissolved after many of its remaining parts were purchased by Barclays and Nomura, among others d. The U.S. stock markets dropped dramatically as the credit fueled economy of the mid-2000s started to suffer after the credit bubble began to burst.
15) Different banks in a country offers high interest rate on Negotiable certificate of deposits. It a. Attracts banks to increase their deposit b. Banks will become insolvent c. Attracts banks to purchase more assets d. Attracts customers to increase their loan
Interest rates charged by pawnshops, title loan companies, and payday loan companies often far exceed the cost of borrowing on a credit card. True False
How is your borrowing power affected when you are considered a "high risk"? There is a good chance that you will receive better loan terms and low interest rates. You might not qualify for a loan to buy a home, car, etc. You will pay lower interest rates. None of the above.
Which of the following are characteristics of consumer closed credit (installment debt)? 1. generally the loan is larger than what is available with revolving credit 2. flexibility in the amount and timing of the debt repayment 3. the loan repayment is often fully amortized 4. the interest rate on a collateralized installment loan is typically lower than the interest rate on unsecured revolving credit 5. if the loan is paid before the grace period, then no interest applies 1 and 2 O 2, 4 and 5 O 1, 3 and 4 O 3 and 4
You are working hard to pay off your debts. You had 3 $1,000 credit cards maxed out but just paid off one and closed it. Which factors are impacted? What could you have done instead? Show your calculations.
Alek has been a credit card user for several years. He always pays his monthly balance in full on time. He can therefore expect the credit card company to: a. offer him a higher credit line b. offer him a lower credit line c. remove his annual fees d. increase his annual fees e. waive charges for ATM withdrawals [ don't give chatgpt answer]
Consider the following conditions:(a) In your new job you are paid each month, instead of weekly.(b) The rate of interest on bonds and other financial assets rises.(c) An automatic teller machine (ATM) is installed next door and you have a debit card.(d) Bond prices are expected to fall.Would you decide to increase or decrease your average holding of money (i.e. cash and/orcheque deposit balances)? Which of the three motives for holding money is involved in eachcase?

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