Which of the following would be a balanced set of measures for any given project?A. Input measures, process measures and output measuresB. Output measures onlyC. Effectiveness measures onlyD. Cycle time measures only

Answers

Answer 1

Answer:

A. Input measures, process measures and output measures

Explanation:

A project should have all of the following measures.

Input Measures

To ealuate the performance of the project we should measure the resource being used in the project.

Process Measure

In processing phase we should have controls over the resource to get the required output.

Output measure

We should measure the output that a process gives after processing on the resources being input in the process.


Related Questions

Identify the main activities or functions of Martin Guitar’s business and explain how each activity benefits the company.

Answers

Answer:

It is famous company of Martin who was known for its instruments quality.

Explanation:

Martin company was producing the acoustic instruments. These instruments are acknowledged the best instruments in the world. Last many years, Martin managed the company to success and brings it to the next generation. By the time the company has changed the design, and the manufacturing methods.

Martin never lose the commitment from its initial stage of quality for their products. Martin make the instruments such ads guitar. The story also started from guitar. It is dedicated to the six generation of the guitar makers.

A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?

Answers

Answer:

$3,063,750

Explanation:

A 180 day $3,000,000 CD

Annual rate = 4.25%

Collection in 180 days = ?

$3,000,000 * 4.25% * 180/360

= $3,000,000 *  0.02125

= $63,750

Total amount to collect after 180 days = $3,000,000 + $63,750

Total amount to collect after 180 days = $3,063,750

The principal liaison between the information systems groups and the rest of the organization is​ a(n): .

Answers

Answer:

System analyst.

Explanation:

The principal liaison between the information systems groups and the rest of the organization is​ a system analyst. Simply stated, a system analyst is an individual who controls or supervises the information systems and relays information to other departments in an organization.

Information system can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

Basically, it is an essential part of an organization or business firm because they typically rely on information systems in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, to process financial accounts, manage their workforce, and as a marketing channel to reach their customers or potential customers.

Additionally, an information system comprises of five (5) main components; hardware, software, database, human resources and telecommunications.

"A registered representative ("RR") has entered an order to buy 100 shares of ABC at $50 per share for a customer. The transaction is executed at $50 per share, and when the representative is reporting the trade to the customer, she notices that the account number on the executed order ticket is wrong. Which statement is TRUE?"

Answers

Answer:

The RR may change the account number on the order ticket to correct number if the branch manager so agrees and provides in written.

Explanation:

In the given case, we  know that when the customer buys shares he provides all the details as Name, Address, Contact Details, mail id, etc:

Now when the account number do not match as to the original of the customer, she the registered representative shall confirm to the original information and if the customer is same the details if any which are not correct shall be changed in records if the branch manager so agree.

As this is beneficial to the both the branch manager and the customer.

Which of the following is the correct ordering of the capital stack (from most secure to least secure)? Review Later Equity -> Subordinated debt -> Senior debt Senior debt -> Equity -> Subordinated debt Senior debt -> Subordinated debt-> Equity Subordinated debt -> Senior debt -> Equity

Answers

Answer: Senior debt -> Subordinated debt-> Equity

Explanation:

Senior debt to a company is the one with the highest priority when it comes to repayment so it is the most secure. It is usually anchored to some sort of asset as collateral.

Subordinated debt comes after and as such is less secure than the senior debt which means that it will draw a higher interest rate as it has a higher default risk.

Equity would be the least secure because it represents ownership in the company. Earnings such as dividends flowing to Equity holders comes after debt has been paid so they are the least secure and the lowest in priority.

A company has total fixed costs of $220000 and a contribution margin ratio of 20%. The total sales necessary to break even are

Answers

Answer:

The total.sales necessary are $50,000

Explanation:

Identify the expanding capabilities of mobile phone and passenger processing applications to the industry.

Answers

Explanation:

Consider they enable the following:

1. It provides convenient services

2. It is flexible to the needs of passengers

3. It disseminates information faster

What is the MOST important item to disclose to a customer who invests in a fund of hedge funds?
A. The illiquidity of the investment
B. The high risk of speculative options strategies used by hedge fund managers
C. The high fees and expenses of the investment
D. The lack of disclosure about the underlying hedge funds

Answers

Answer:

A. The illiquidity of the investment

Explanation:

This rightly could be considered as the MOST important item to disclose to a customer who invests in a fund of hedge funds. Let's imagine a customer who invests in a hedge fund and a few days later feels he could take back out from his investment, only to learn about the illiquid nature of hedge fund investment.

For clarity, to say that hedge funds are illiquid means that they require all investors to keep their money in the fund for at least one year, often called the lock-up period. With certain limitations on withdrawals.

The concept of property rights claims that:
O A. people and businesses should be able to freely use their property.
B. property should be monitored and controlled by the government.
O c. businesses must use property productively or be forced to sell it.
O D. consumers have a right to reclaim their property after they have
sold it.

Answers

Answer: A

Explanation: individuals generally exercise private property rights or the rights of private persons to accumulate, hold, delegate, rent, or sell their property.

The concept of property rights claims that people and businesses should be able to freely use their property. (A)

What is property?

A thing or things belonging to someone; possessions collectively.

What are property rights?

Property rights have developed over ancient and modern history, from Abrahamic law to todays Universal Declaration of Human Rights article 17.

What is business?

Business is the activity of making one's living or making money by producing or buying and selling products

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On January 2, 20X4, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, 20X24. The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 31. West uses the interest method of amortizing bond discount. In its June 30, 20X4, balance sheet, what amount should West report as bonds payable?

Answers

Answer:

$470,475

Explanation:

We first calculate interest for 6 months

= 0.09 x 6/12

= 4.5%

Yield for 6 months

= 10% *6/12

= 5%

Interest at 4.5%

= 500000 x 4.5%

= 22500

Interest at 5%

= 469500 x 5%

= 23475

Amortization

= Interest expense - interest payment

= 23475 - 22500

= 975

Issue price of bond + amortization

= 469500 + 975

= $470,475

In UC when opportunity is 50,000 USD, manager has to approve prior to moving to next stage. There are two managers in 2 regions. What should admin do that the right manager approves the opportunity

Answers

Answer:

The HR/Admin Executive will have to send the Approval to both managers. The Approval is sent first to the first Manager. Upon receipt of the Approval Notification, he executes the Approval if he or she is the right manager. If not, it is sent to the second Manager.

The Admin must also create a lookup field within the CRM to get the details of the right manager  

Thereafter, he or she is to create an Assignment Rule which going forward works to automatically insert the manager in opportunity.

Cheers!

the primary measurement unit used for assessing the value of one's stake in an investment company is

Answers

Answer:

net asset value

Explanation:

The primary measurement unit being described is known as the net asset value or NAV for short. NAV is commonly used as a per-share value for a variety of different assets such as mutual fund, ETF, or closed-end fund and is calculated as the company's/individua's total assets minus those asset's total liabilities. This can be seen in the attached picture below.

Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing?
Sales (20 percent for cash, the rest on 30-day credit terms):
2014 Actual 2014 Projected
July August September October November
76,000 88,000 266,000 125,000 51,000
Purchases (all on 60-day terms):
2014 Actual 2014 Projected
July August September October November
116,000 122,000 257,000 62,000 27,000
Salaries payable monthly 20,000
Principal payment on debt due in December 25,700
Interest due in December 9,000
Dividend payable in December 15,000
Taxes payable in November 19,000
Addition to accumulated depreciation in December4,000
Cash balance on October 1, 2014 34,000
Minimum desired cash balance 15,000

Answers

Answer:

Noble

Monthly Cash Budget for the months of October through December 2014:

                                                           October     November      December

Cash balance on October 1, 2014   $34,000      $129,800      ($56,000)

Total cash received                          237,800        110,200          40,800

Total cash available                        $271,800    $240,000       ($15,200)

Cash payments:  

Cash payment for purchases          122,000      257,000          62,000

Salaries                                              20,000        20,000           20,000

Principal payment                                                                         25,700

Interest                                                                                            9,000

Dividend                                                                                        15,000

Taxes                                                                      19,000

Total cash payments                    $142,000    $296,000        $131,700

Cash Balance                               $129,800      ($56,000)    ($146,900)

Minimum desired cash balance 15,000

Explanation:

a) Data and Calculations:

1. Sales:

Cash Sales = 20% of Sales

Sales on account = 80%

Credit terms = n/30

                                  2014 Actual                            2014 Projected

                           July       August  September  October   November   Dec.

Sales:              76,000   88,000    266,000       125,000     51,000

Cash Sales                                       53,200        25,000     10,200

Cash received on account                                 212,800   100,000   40,800

Total cash received                                         $237,800  $110,200 $40,800

2. Purchases (all on 60-day terms):

                           2014 Actual                            2014 Projected

                         July      August   September   October   November   Dec.

Purchases      116,000  122,000   257,000      62,000      27,000

Cash payment                                116,000     122,000    257,000   62,000

3. Other information:

Salaries payable monthly 20,000

Principal payment on debt due in December 25,700

Interest due in December 9,000

Dividend payable in December 15,000

Taxes payable in November 19,000

Addition to accumulated depreciation in December 4,000

Cash balance on October 1, 2014 34,000

Minimum desired cash balance 15,000

b) Noble will enjoy cash surfeit in October only.  In November and December, it will be in some serious deficits that require external financing to keep the business afloat.  If cash requirement through some external financing is not satisfied in November and December, Noble will not be able to meet with its maturing debt obligations.

A client of a member broker-dealer has just found a new job requiring relocation with a salary paying 50% more than the old job. The client should

Answers

Answer: notify the broker-dealer of the change within 30 days

Explanation:

From the question, we are informed that client of a member broker-dealer has just found a new job requiring relocation with a salary paying 50% more than the old job.

Based on the above scenario, the client has to notify the broker-dealer of the change within 30 days. This is because when significant changes to the status of a client, the firm has to be notified by the client within 30 days.

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021. Inventory is as follows:
Product Cost
A $ 46
B 86
C 46
D 106
E 26
Per Unit
Replacement Cost $41 76 61
Selling Price $ 66 106 86 136 34 36
Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round Intermediate calculations. Round final answers to 2 decimal places.)

Answers

Answer:

Unit values are given below

Explanation:

The unit value Royal Decking should use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory can be calculated as follows

Product  Cost   Replacement     NRV   NRV - NP  Market Inventory Value

A             $46             $41           $57.10   $40.60       $41            $41

B             $86             $76          $91.10   $64.60       $76            $76

C             $46             $61          $75.10   $53.60       $61            $46

D             $106           $76          $117.10  $83.10        $83.10       $83.10

E             $26             $34          $31.10   $22.10        $31.10         $26

Woking (NRV)

NRV = Selling price -Sales commission - Shipping cost

Product A ($66 - [$66*10%] - [$46*5%]) = $57.10

Product B ($106 - [$106*10%] - [$86*5%]) =$91.10

Product C ($86 - [$86*10%] - [$46*5%]) =$75.10

Product D ($136 - [$136*10%] - [$106*5%]) =$117.10

Product E ($36 - [$36*10%] - [$26*5%]) =$31.10

Working (NRV - NP )

Product A ($57.10 - [$66*25%]) = $40.60

Product B ($91.10 - [$106*25%]) = $64.60

Product C ($75.10 - [$86*25%]) = $53.60

Product D ($117.10 - [$136*25%]) = $83.10

Product E ($31.10 - [$36*25%]) = $22.10

The Global Economic Crisis Mortgage originators issued mortgages to home buyers and sold these mortgages to securitizing firms. These firms bundled these mortgages into pools and created securities that were backed by the mortgage payments. A portion of these pools were called tranches. Groups of tranches were further combined and then divided again into more complex securities called collateralized debt obligations (CDOs). These securities were redivided and recombined to create even more complex securities called CDOs-squared. This process had important implications:________.
(1) The total risk embedded in the mortgages did not change; (2) since the risk was spread amongst several CDOs, it was difficult to assess the risk in each CDO; and (3) during the process of securitization and resecuritization, financial institutions earned fees and were thus encouraged to continue this process. These securities were sold to investors across the world. If all went well, home buyers would make their payments and investors would earn their returns. However, a series of mortgage defaults led to the meltdown. Investors who were the indirect lenders to the home buyers didn't receive the expected cash flows, and on top of that, financial institutions skimmed fees during the process.
Check all that apply.
A) Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept interest rates really low to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices.
B) The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of collateralized securities.
C) Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMs)—were preferred by subprime borrowers.
D) Rating agencies, such as Moody's and Standard & Poor's, earned fees from securitizing agencies for providing ratings for CDOs. The securitizing agencies were looking for higher ratings for their CDOs, and the rating agencies were earning fees. This led to a conflict of interest; thus, ratings did not reflect the true risk involved in the CDOs, which were backed by mortgages

Answers

Answer:

The Global Economic Crisis

Factors that led to the Mortgage Crisis include all:

A) Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept interest rates really low to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices.

B) The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of collateralized securities.

C) Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMs)—were preferred by subprime borrowers.

D) Rating agencies, such as Moody's and Standard & Poor's, earned fees from securitizing agencies for providing ratings for CDOs. The securitizing agencies were looking for higher ratings for their CDOs, and the rating agencies were earning fees. This led to a conflict of interest; thus, ratings did not reflect the true risk involved in the CDOs, which were backed by mortgages.

Explanation:

Hedge funds, banks, and insurance companies helped to cause the subprime mortgage meltdown while regulators looked the other way.  They were given free rein to construct so many complex securities which somehow contributed to the mortgage defaults with financial institutions skimming fees during the securitization processes, and mortgages were made accessible for borrowers who did not meet the income and minimum down payment requirements.

"If a mutual fund distributes 99% of its Net Investment Income to its shareholders, how much of the Net Investment Income will be taxable?"

Answers

Answer: 1%

Explanation:

The amount that the Mutual fund will be taxed on is the 1% of Net Investment income that will be remaining. This is because the distributed income will be taxed from the shareholders and so does not need to be taxed from the mutual fund in order to avoid double taxation.

The 99% that was distributed will then be taxed based on what type of income it is i.e dividend income, capital gains etc.

In the early 1950s, in which currency were Magnum Corporation's business activities carried out?

Answers

Answer:

In the early 1950s, the currency that Magnum Corporation carried out its business activities was the US Dollar.

Explanation:

The company has since expanded its operations worldwide.  Magnum Corporate was a US-headquartered corporation.  Its business model was founded on the production and sale of rearview mirrors, according to history.  These days, many of its business activities are conducted across the globe.  These also require interaction with other countries' currencies and the translation of its financial performances by the use of foreign exchanges.

Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is correct?

Answers

Answer:

Statement A

Explanation:

The 2 statements are:

A: The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements

B: The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements

The explanation for this is:

- The company is an insurance company

- An insurance company holds funds for their customers; to be released when the customer is less privileged or in a bad situation, depending on the type of insurance made

- There is car insurance, house insurance, life assurance, etcetera.

- So if the insurance company receives proof of loss statements from the customer, it will release funds to solve the customer's dire need

- In this case, it takes 120 days to verify, process and then agree (affirm) to release funds (claims) to the affected customer.

So the answer is Statement A.

Specialists on stock exchanges perform the following functions:________
A) Act as dealers in their own accounts.
B) Analyze the securities in which they specialize.
C) Provide liquidity to the market.
D) a and b.
E) a and c.

Answers

Answer:

E) a and c.

Explanation:

Note that those who are referred to specialists are also called professional stock traders. In a way, they act as dealers in their own account by representing themselves in their market trades since they could also act as brokers for their clients.

They provide liquidity to the market by generating funds into the pool of transactions in the exchange market

The two major markets in the circular flow of income and expenditure are the:________
[1] foreign exchange market and factor market.
[2] goods market and factor market.
[3] goods market and services market.
[4] factor market and production market.

Answers

Answer:

[2] goods market and factor market.

Explanation:

The circular flow of income shows how exchange of money, goods and services occur in an economy.

the two flow circular income model consists of an household and a firm.

The household buys factors of production from the household in exchange for money (firms buys from the factor market). In return, households receive payment.

households then go to the goods market to purchase goods and services.

The two major markets in the circular flow of income and expenditure are the goods market and factor market.

What is the term circular flow of income about?

The circular flow of income shows how exchange of money, goods and services occur in an economy.

The two flow circular income model consists of an household and a firm.The household buys factors of production from the household in exchange for money (firms buys from the factor market). In return, households receive payment.

Therefore, correct option is B.

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A firm has a marginal cost of $20 and charges a price of $40. The Lerner index for this firm is:________.
A. 0.20. B. 0.50. C. 0.33. D. 0.75.

Answers

Answer:

The correct answer is:

0.50 (B)

Explanation:

The Lerner index is used by monopolists to measure market/monopolist power, and it is defined as the percent markup of price over marginal cost.

It is given by the formula:

[tex]L = \frac{P - MC}{P}\\where:\\L = Lerner\ index\\P = price = \$40\\MC = marginal\ cost = \$20\\\\L = \frac{40\ -\ 20}{40} \\L = \frac{20}{40}\\ L = 0.5[/tex]

Note: in a perfectly competitive market, L = 0, which makes Price = Marginal cost in the equation above. But in a competitive market, it is always the case that L ≥ 0

The asset, equipment, used by a department accounted for by the General Fund of a governmental unit should be reported in the:

Answers

Answer:

Government-wide statements.

Explanation:

What is the government wide statements?

This is a summary and well detailed statement of the main or major government funds, their expenditures/ how much have been spent and also the amount of money that the government has left. It shows the government's financial activities, all in one place.

Therefore from the question, the asset and equipment has to be reported in the government wide statement.

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?
a. Total assets will be understated at the end of the current year
b. The balance sheet and income statement will be misstated but the statement of owner's equity will be correct for the current year.
c. Net income will be overstated for the current year.
d. Total liabilities and total assets will be understated.

Answers

Answer:

c. Net income will be overstated for the current year.

Explanation:

Depreciation is defined as the reduction in the value of an asset over the period of it's useful life.

The deductions are calculated and taken out of the asset value on the balance sheet.

The adjusting entry for depreciation at the end of year is a debit to Depreciation Expense and a credit to Accumulated depreciation.

If this entry is no passed it means that Depreciation Expense is not recognised for that year.

Net income will be overstated because generally expenses will be understated.

An unincorporated association of two or more persons to pursue a business for profit as co-owners is a:

Answers

Answer:

Partnership

Explanation:

A partnership is a business organization in which two to twenty people agree legally to set up and manage a business outfit with the sole aim of making profit. It is usually formed by an association of two to twenty persons, who by an agreement (usually legal) decide to pool their resources (capital) or skill together and establish a business enterprise. The people involved in partnership are called partners and they share the profit, losses and risk of the business

which of the following is not true about macroeconomics? 1. focus on the determinants of rational output 2. observation stickiness of important prices in the economy 3. focus on the determinants of production of particular product/industry 4. focus on general price level 5. focus on the determinants of total employment in the economy

Answers

Answer:

Number 2, number 3 and number 4 are  incorrect

Explanation:

After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are

Answers

Answer: substitute

Explanation:

After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are substitutes.

Substitute goods are the goods that serve thesame functions and one can be used to replace the other one. Since both goods produced are substitutes, that means when there's price increase, even though consumers shift from one good to another, there's still rise in price which will increase profits

If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:

Answers

Answer:

Recognized as revenues in the debt service fund.

Explanation:

Debt Service fund is a term that is used to describes a form of cash reserve utilized in the payment of interest and principal on specific kinds of debt for a given period. For example, bond premiums are commonly imposed by state law to be moved to debt service funds.

Hence, If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are: Recognized as revenues in the debt service fund.

Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 90 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors’ expectations for future performance and that the current T-bill rate is 5%.
Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U = E(r) − 0.5 × Aσ2. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
WBills WIndex U(A=2)
0.0 1.0
0.2 0.8
0.4 0.6
0.6 0.4
0.8 0.2
1.0 0.0

Answers

Answer:

1) 0.0900

2) 0.0884

3) 0.0836

4) 0.0756

5) 0.0644  

6) 0.0500

Explanation:

WBills   Rbils   Windex   Rindex   R-portfolio   α-portfolio   α²-portfolio   (A=2)

 (A)        (B)         (C)     D(8%+5%)   AB+CD          C20%                  

0.0        5%        1.0           13%          0.13              0.20          0.04          0.0900

0.2        5%        0.8          13%          0.114             0.16           0.0256     0.0884

0.4        5%        0.6          13%          0.098           0.12           0.0144      0.0836

0.6        5%        0.4          13%          0.082           0.08          0.0064     0.0756

0.8        5%        0.2          13%          0.066           0.04          0.0016      0.0644  

1.0         5%        0.0          13%          0.050           0.00         0.0000     0.0500

Utility level values of each portfolio for an investor with A=2

1) 0.13 - (0.5 ×2×0.04) = 0.0900

2) 0.114 - (0.5×2×0.0256) = 0.0884

3) 0.098 - (0.5×2×0.0144) = 0.0836

4) 0.082 - ( 0.5×2×0.0064) = 0.0756

5) 0.066 - ( 0.5×2×0.0016) = 0.0644

6) 0.050 - ( 0.5×2×0.000) = 0.0500

First is 0.0900

Second is 0.0884

Third is 0.0836

Fourth is 0.0756

Fifth is 0.0644  

Sixth is 0.0500

What is Utility Function?

W-Bills   R-bils   Windex   R-index   R-portfolio   α-portfolio   α²-portfolio   (A=2)

(A)        (B)         (C)     D(8%+5%)   AB+CD          C20%                  

0.0        5%        1.0           13%          0.13             0.20          0.04          0.0900

                                                                                                               

0.2        5%        0.8          13%          0.114             0.16           0.0256     0.0884

                                                                                                                 

0.4        5%        0.6          13%          0.098           0.12           0.0144      0.0836

                                                                                                                     

0.6        5%        0.4          13%          0.082          0.08          0.0064     0.0756

                                                                                                                   

0.8        5%        0.2          13%          0.066          0.04          0.0016      0.0644  

                                                                                                                   

1.0         5%        0.0          13%          0.050           0.00        0.0000     0.0500

Then the Utility level values of each portfolio for an investor with A is = 2

First is 0.13 - (0.5 ×2×0.04) is = 0.0900

2) Then 0.114 - (0.5×2×0.0256) is = 0.0884

3) After that 0.098 - (0.5×2×0.0144) is = 0.0836

4) Then 0.082 - ( 0.5×2×0.0064) is = 0.0756

5) Now 0.066 - ( 0.5×2×0.0016) is = 0.0644

6) Then 0.050 - ( 0.5×2×0.000) is = 0.0500

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The cost of borrowing money that is reserved for large corporations with excellent credit ratings is called the

Answers

Answer:

Prime interest rate

Explanation:

The prime interest rate is the rate of interest in which the commercial bank charged for majorly all creditworthy customers as it focused only large corporations. It is to be figured out by the federal fund rate i.e. to be used for lending one to another

Therefore according to the given situation, the term we called prime interest rate as it is mostly focused to those corporations who have great credit ratings

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