Mortgages with short-term savings deposits

Assignment Help Business Economics
Reference no: EM132198973

Savings and loans finance fixed-rate, long-term, 30-year home mortgages with short-term savings deposits. Is this risky?

a. Yes, because an increase in nominal interest rates will push up costs far more than revenues, and decrease profits.

b. Yes, because a reduction in nominal interest rates will reduce income far more than costs, and decrease profits.

c. No; if nominal interest rates rise, income and costs will increase by similar amounts, leaving profits unchanged.

d. No; neither income nor costs will be affected by changes in nominal interest rates, and profits would not be affected.

e. Both A and B are correct.

Reference no: EM132198973

Questions Cloud

Price such difficult variable for marketers to control : Why is price such a difficult variable for marketers to control? What factors must they consider in setting prices?
What is ruritania steady state level of capital : Ruritania's labor, technology, and education levels are constant, and its economy has a production func"on that can be described by Y = 2K".
Write a function that is passed three integers and returns : Write a function called tiniest that is passed three integers and returns the smallest of the three.
Balance the line using the longest task time rule : Desired output is 75 units per hour, thus the cycle time is 48 seconds. Balance the line (assign all tasks) using the longest task time rule.
Mortgages with short-term savings deposits : Savings and loans finance fixed-rate, long-term, 30-year home mortgages with short-term savings deposits. Is this risky?
Write a function that takes as an input a matrix p : Write a function called NoNegs that takes as an input a matrix P, and has a single output Q, which is the same as matrix P.
Write a function day name that consumes a parameter : Write a function day Name that consumes a parameter, day, containing the numerical value of a day in December 2011.
What is the inventory turnover for the hamburger patties : What is the inventory turnover for the hamburger patties? On average, how many days of supply are on hand?
Write a function that takes a matrix input called deg : The function returns a matrix of the same size as deg with each of its elements containing the sine of the corresponding element of deg.

Reviews

Write a Review

 

Business Economics Questions & Answers

  When real estate agents sell their own home

When real estate agents sell their own home rather than a client's, they leave their house on the market for a longer time

  Ethics and community

Write an essay on (or discudd) whether or not the justice system is simply a bureaucratic assembly line that does not promote justice as much as it simply ensures its own survival, with an emphasis on production. What should be the professional goals..

  History of the global economy

Why are ideas of "modernization" (cohn, 107) and "progress" so important to the post-World War II.

  Keep track of the total number of bugs collected

Declare variables for the daily number of bugs, an accumulator variable to keep track of the total number of bugs collected, and a loop counter (suggestion: name this variable counter) to count the number of loop iterations. These can all be Integ..

  How has the market for french wines

How has the market for French wines been affected by the poor harvest?

  What is the price elasticity of labor supply

Suppose a wage increase from $11 to $13 an hour increases the number of job applicants from 42 to 56. What is the price elasticity of labor supply?

  Elucidate what impact will this change have on the price

Elucidate what impact will this change have on the price level, output, and employment in the short run in the United States.

  Total number of orders recorded

Write a query that shows only the three highest (in order) day/shift combinations, based on the total number of Orders recorded. Display the English day name in the result. Here is a sample of that result set:

  What are the economic implications

Trans-Pacific Partnership (TPP) A. What are the economic implications? Provide a credible citation.

  What is the marginal rate of substitution for consumer

Suppose there are two consumers, A and B. The utility functions of each consumer are given by: Using an Edgeworth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to..

  What types of information do market prices provide

It has been said that "Prices are like giant neon billboards that flash important information." What types of information do market prices provide?

  What is your target service level

You are the buyer for your university bookstore. One of the textbooks has a cost to you of $ 100 and you sell it to students for $140. Any copies of the book that you order and do not sell to students can be returned to the publisher for an average $..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd