Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution. (a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage. EXPLANATION: The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values. Quarters TNWBSHNO DRTSPM 01-10-2014 5.10 -11.1 01-7-2014 6.58 -18.3 01-4-2014 10.15 1.4 01-1-2014 10.69 1.4 Average 5.10 + 6.58 + 10.15 + 10.69 4 = 8.13 − 11.1 − 18.3 + 1.4 + 1.4 4 = 6.65 01-10-2013 13.51 -8.7 01-7-2013 11.95 -7.5 01-4-2013 11.99 -7.8 01-1-2013 9.93 -7.6 Average 13.51 + 11.95 + 11.99 + 9.93 4 =11.84 − 8.7 − 7.5 − 7.8 − 7.6 4 = -7.9 Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year. The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans. (b) To Find: From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information. EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information. Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Respond to B.A. I have chosen Gross Domestic Product (GDP) as the macroeconomic indicator to review and provide a forecast prediction. Based on the current trend I predict a 2% annual GDP growth rate, indicating an unstable economy due to the impact of Donald Trump's tariffs on some countries and other other economic factors. This growth rate is lower than the historical average , indicating a slowdown in economic expansion. Overall, the forecast suggests a modest growth in GDP, but with potential risks and uncertainties ahead. But if he reverse his tariff policies, I think it could possibly result in a strong economic growth. As the removal of tariffs would likely minimize the costs for businesses and consumers and also rise trade and economic activities. Provide feedback/comments this post. You could agreement or disagreement (including why you agree or disagree). Or you could expand on this post by sharing different views and predictions.

Can you show me how to solve this.

ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.

Answer 2

Question

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Answer 6

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Answer 7

Chapter 8, Problem 2DAP

To determine

Introduction:

Lending standards will differ from place to place, country to country and will also vary from one financial institution to another. Lending standards are designed by the financial institutions and the guidelines are universal for all branches of that financial institution.

(a)To Find: The average values of the four recent quarters and next 4 quarters prior to it and note down the change in percentage.

EXPLANATION:

The data given here is related to the change in percentage in the net worth indicator and bank standards indicator. The average calculated for the present four quarters is 9.14% & -7.9% and prior next quarters is 11.84 % & -7.9 % which are in accordance with the expected values.

Quarters TNWBSHNO DRTSPM
01-10-2014 5.10 -11.1
01-7-2014 6.58 -18.3
01-4-2014 10.15 1.4
01-1-2014 10.69 1.4

Average 5.10+6.58+10.15+10.69 4 = 8.13 −11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013 13.51 -8.7
01-7-2013 11.95 -7.5
01-4-2013 11.99 -7.8
01-1-2013 9.93 -7.6

Average 13.51+11.95+11.99+9.93 4 =11.84 −8.7−7.5−7.8−7.6 4 = -7.9

Net worth indicators tell us about the value of the households and NGOs. The values of the indicators are changed to reflect the worth from the previous year.

The fall in the value of the net worth indicator reflects that there is a reduction of the net worth of household and NGOs. At these situations, the banks become reluctant to issue the loans further as they are less worthy. Due to this, there is a strictness in the bank standards and are risen to issue to loans.

(b) To Find:

From the US Stock Indices-monthly of DJIA, the S&P 500, and NASDAQ Compositeusing the analysis tool indicator to calculate the correlation coefficient for the two series from the year 2007 and to conclude from it regarding the net worth of households and bank mortgage lendingstandards and to find if the results reduce asymmetric information.

EXPLANATION: The standard value for the bank standards and net worth indicator is -0.89 which means that there is a negative relation between the two, which is to reduce asymmetric information.

Whenever there is a fall in the value of the Net Worth indicator, there is a rise in the Bank Standard indicators and vice versa.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 8 - Prob. 1LO Ch. 8 - Prob. 2LO Ch. 8 - Prob. 3LO Ch. 8 - Prob. 4LO Ch. 8 - Prob. 5LO Ch. 8 - Prob. 6LO Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q

Quarters	TNWBSHNO	DRTSPM
01-10-2014	5.10	-11.1
01-7-2014	6.58	-18.3
01-4-2014	10.15	1.4
01-1-2014	10.69	1.4

Average	5.10+6.58+10.15+10.69 4 = 8.13	−11.1−18.3+1.4+1.4 4 = 6.65

01-10-2013	13.51	-8.7
01-7-2013	11.95	-7.5
01-4-2013	11.99	-7.8
01-1-2013	9.93	-7.6

Average	13.51+11.95+11.99+9.93 4 =11.84	−8.7−7.5−7.8−7.6 4 = -7.9

Want to see the full answer?

Chapter 8 Solutions