Let's say that interest rates on housing loans and hire purchases are falling significantly.  So is it recommended from a financial planner's point of view that households should be encouraged to take more debt?

Q: Default Pay Yourself First Interest occurs when a borrower is unable to meet the obligation of debt…

A: In this case we are given different terms related to finance in general and to use of borrowed money…

Q: Why lenders assume no risk in granting loan to the government though the return of this type of loan…

A: Loans are raised by governments to meet the financing requirements of the country.

Q: From a financial perspective, how are projects chosen when capital rationing exists? Do you think…

A: In this question, we are required to determine how projects are chosen based on capital rationing…

Q: Which of the following is generally the least expensive source of funding? A) demand deposits B)…

A: Demand deposits refer to funds held in bank accounts that can be withdrawn by the account holder at…

Q: Why do federally guaranteed loans usually have the least risk for banks, List some popular…

A: Federal guaranteed loans are loans that are backed by the federal government, which means that the…

Q: Do you think that removing the impediments to a nationwide banking system will be beneficial to the…

A: Nationwide banking system refers to the process of providing financial services to the customers of…

Q: Historically, financial access to the poor have been difficult. Since the microfinance movement took…

A: Microfinance refers to those financial services that are provided to individuals and to groups with…

Q: What are the major expenses associated with making consumer loans? What is the average size of…

A: A Consumer Loan is a loan that banks provide to consumers in order for them to purchase domestic…

Q: Consumer loans, by this definition: Some of the most expensive Least borrower-friendly More are…

A: A loan that is given by financial institutions to consumers to fulfil their needs is known as a…

Q: Suppose Beth comes into a large sum of money and decides to lend it out to earn interest on it.…

A: INTRODUCTION: A financial intermediary is a third party that creates an environment for multiple…

Q: in discretionary fiscal policy (e.g., taxes) and automatic stabilizer ployment insurance benefits)…

A: Government changes the policy to bring desired impact on the economy.

Q: Why does the Social Security system face a crisis? Are there real assets in the Social Security…

A: Social security system is a mechanism which works on "pay-as-you-go" may face crisis when the inflow…

Q: f a bank's credit ratings decrease, How does this affect borrowers, lenders, and financial…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If you want to cut taxes and deficits, just what programs are you prepared to cut?

A: Tax cuts square measure changes within the law that scale back your tax payment alongside income.…

Q: If the national debt increases, is it true that we need not worry about the debt as long as the…

A: National debt is the amount of money owed by the government. The government takes national debt in…

Q: Why do you think banks are willing to offer savers higher rates of return if they agree to less…

A: Savers are those persons who deposit money in various deposit accounts for the purpose of earning…

Q: Provide an example of Decentralised Finance (Defi) and critically examine the effect of Defi on…

A: Decentralised Finance (DeFi), which challenges conventional banking structures and ushers in a new…

Q: If the bank decides to cut down on interest expenses by reducing its dependence upon borrowed funds,…

A: We have to figure out the policy the bank must follow if it decides to cut down on interest expenses…

Q: financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable…

A: Payday loans are non-secured ash advances for small sums of money with extremely high-interest rates…

Q: Your company provides credit to customers. Someof these customers default on their loans, with…

A: Discriminant analysis is the analysis which provide the permission to organization in determining…

Q: How has the credit crisis May have adversely affected many homeowners and mortgage companies?

A: Homeowners insurance policies are defined as the type of an insurance policies, which usually covers…

Q: You will discuss credit from the lenders point of view. What factors do lenders consider when making…

A: A credit score is a numerical representation of a person's creditworthiness and indicates how well…

Q: How is your borrowing power affected when you are considered a "low risk"? There is a good chance…

A: A low risk individual has a better credit history and higher credit score. This is due to better…

Q: Within the context of the real estate bubble burst of around 2008, consider the follpwing statements…

A: The Real Estate Bubble Burst of 2008The real estate bubble burst of 2008 was a significant event in…

Q: What does a high credit score mean? The person is considered a higher risk and less likely to pay…

A: A credit score evaluates a person's creditworthiness, or ability to repay debt. It is commonly…

Q: ich of the following was part of the U.S. government’s response to the credit crisis? a) Troubled…

A: Basic Concepts of Accounts and business

Q: The economy is said to be entering a recession but your company needs to borrow money for an…

A: Recession: Recession is a slowdown of economic activity. In recession there is an increase in…

Q: I am currently working on a study guide and came across the following question.  Which of the…

A: a)It is known that total revenues are equal to the total number of quantities sold. Therefore, if…

Q: Which will result in a higher net worth? I.    Paying down debt with cash flows. II.   Making…

A: The Net Worth is Shareholder's funds. It is comprise of Common Stock,  preferred Stock and Retained…

Q: Suppose expenses for Medicare and Medicaid are rising rapidly. Which strategy could the federal…

A: As the expenses for medicare and medicaid are increasing, the government must introduce policies…

Q: Why do you think future generations might complain about having to pay for capital projects?

A: The question is asking about the potential concerns of future generations regarding the payment for…

Q: What does a low credit score mean? The person has a low amount of credit. The person is likely to…

A: A person with a bad credit rating has a low credit score.  A credit score defines the person's…

Q: you think that the pandemic has impacted the ability of firms to raise

A: Pandemic have impact on whole business scenario and financial conditions.

Q: Student Loan. Is it worth it?

A: A loan suggests a borrowing by the student to finance the study costs.

Q: In periods when home prices declined substantially, some homeowners blamed the Central bank. In…

A: In order to maintain a stable level of economic activity, the Fed uses monetary policy to do so. The…

Q: M-1 when the economy is expanding than when it is experiencing a recession. Do you agree or…

A: The money multiplier will depend on the proportion of reserves that banks are required to hold by…

Q: Using loanable funds model, explain how tax cuts for businesses will impact the interest rate and…

A: If the government has announced tax cut for the business sector and it would be leading to increase…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

Q: Why did actual home buyers/ borrowers start defaulting in the financial crisis of 2007/2008?

A: Financial crisis: A financial crisis is any of a number of scenarios in which some financial assets…

Q: heir loans in one industry so that they can specialize on that industry and reduce the credit risk…

A: Credit risk means risk of default in payment obligation by borrower.

Q: finance

A: Public Finance can be defined as managing the debt, revenue & other expenditure of the country…

Q: Why is knowledge of changing interest rates a significant aspect of personal financial planning?

A: Personal financial planning is very important for the purpose of increasing the rate of return. If…

Factors Affecting Housing Decision