3. The best use of credit is a home mortgage. 4. Credit card blocking is the process used by companies when a large purchase is made to ensure they will be compensated for that money. 5. The greatest disadvantage of credit card use is that they are inviting cardholders to spend money they may not have.
The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs, including the Veteran's Administration's programs and the Department of Agriculture's programs. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money.
C else equal, the break-even point for a taxpayer paying points on an original mortgage is longer All . when the taxpayer's marginal income tax rate increases in the years subsequent to the original financing compared to a taxpayer whose marginal tax rate does not change in the years subsequent to the year in which the loan is executed. D. None of the above statements is correct. 72. On March 31, 2011, Mary borrowed $200,000 to refinance the original mortgage on her principal residence.
Why are CRAs (particularly, Moody’s Investors Service and Standard & Poor’s) so entrenched in financial markets? 3. What are the criticisms of CRAs and is it feasible for regulators to attempt to reduce the reliance of financial markets on CRAs? 4. The article refers to the various sovereign rating changes that have recently occurred.
3. U.S. accounting standards are influenced more by politics than by science or economics. a. In the United States and most other industrialized countries, the accounting rules that businesses use for external financial reporting purposes differ from those required for income taxation purposes. As a consequence, corporate financial reporting choices in the United States are seldom influenced by the U.S Internal Revenue Code.
Among solutions to the agency problem in publicly-held corporations are all of the following EXCEPT Answer a. stock options. b. performance shares. c. cash bonuses tied to goal achievement. d. bonuses based on short-term results. 4 points A more recent issue that is causing major problems in the business community is Answer a. the privatization of ownership.
2. A Bond; is a loan amount lent to a Government, or business which pays a fixed interest rate for a fixed period of time. 3. A Mutual Fund; is a collection of investments managed by a professional investment firm, where investors can buy and sell shares of many different organizations or
Of course, when you find yourself getting into a loaning agreement that you cannot afford, you will find yourself sinking lower and lower when it comes to your credit standing. Your first logical step is to make sure that you do qualify for bad credit mortgages. Do not assume for one moment that the only option you have is this kind of mortgage because you have a bad credit standing. It might surprise you to note that there are some people with such standing who can still qualify for A-paper or prime mortgages. Take note of your credit standing score and check with your local brokers and lending companies.
In the case of our government, debt is managed primarily by selling bonds. The process is cyclical as the government has to sell new bonds to pay for older bonds that have matured. It is important to realize that debt should be judged in relation to assets. While debt is probably never a good thing, in the case of the U.S. economy it is not as bad as it seems. When we view some of the assets of the United States such as natural resources, skilled workforce, and tax revenue generating businesses, we see that our assets have enough value to sustain our current debt level
1. The Household Debt Bubble Abstract: Comments on the decline in real wages & paradoxical rise in consumption in the US, arguing that the potential exists for particularly negative consequences. Data on the family debt burden indicate the class nature of the distribution of household debt, with mortgages, credit cards, & installment buying the areas of highest debt for most families. It is argued that low-income families are prime targets for predatory lending, eg, payday loans, subprime mortgage lending. Of greatest macroeconomic significance is home-secured borrowing, & it is contended that the housing bubble & strength of consumption in the economy are linked to the "household debt bubble," which could burst if interest rates rise & housing prices stagnate or decline.