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3. According to the Theory of Liquidity Preference, a fall in the price level reduces the amount of money that people wish to hold. As a result, falling interest rates stimulates investment spending and aggregate demand. Give an example of this and explain.

Answers

Answer 1

Answer:

The liquidity trap occurs when interest rates are at or close to 0%, but people still hoard cash instead of spending or investing it, hampering monetary ...

Explanation:

An increase in the money supply reduces the equil interest rate for any given price level. Because a lower interest rate stimulates investment spending, ...


Related Questions

An expansionary monetary policy affects aggregate demand
Select one:
a. indirectly, by increasing interest rates and decreasing the available quantity of loans, which reduces spending.
b. directly by decreasing investments.
c. indirectly, by lowering interest rates and increasing the available quantity of loans, which stimulates spending.
d. directly, by increasing government expenditure.

Financial contagion may results in lost integrity in the entire financial system. To prevent this from happening, the Fed may
Select one:
a. consult with private deposit insurance programs to cover the losses of insolvent banks.
b. forgive banks liabilities.
c. act as the lender of last resort to decrease the money supply.
d. act as the lender of last resort to make short-term emergency loans, as needed.

Answers

CO if do of do Mx fill us go

Why should a business have an exit strategy? What is the main advantage and disadvantage for each option—selling a business, going public, and liquidating a business.

Answers

A business owner can use an exit strategy to reduce or sell his ownership in a firm, perhaps making a sizeable profit if the venture is successful. When a company endeavor fails, an exit strategy, often known as a "exit plan," allows the owner of the business to reduce losses.

What benefits do exit strategies provide?

A strong exit strategy before a sale might help you raise the worth of your company. By starting early, you may lay out a clear path to reaching the financial freedom you'll need after leaving while also ensuring that your company stays appealing for a long time after you depart.

What advantages do business sales provide?

If you sell your business, you might be able to pursue other opportunities, such making investments in other businesses or finding a job. With whatever proceeds you receive from the sale of your business, you might be able to settle personal obligations. With the money you earn, you might be able to take time off and go on vacation or spend more time with your family.

What are the key advantages and disadvantages of going public?

When a corporation goes public, a lot of its data and information are made available to the public. Board members are held to higher standards, are subject to routine audits, and their public reporting may attract shareholder attention and, on rare occasions, legal action.

What are the advantages and disadvantages of the liquidation valuation approach?

The liquidation value approach has the benefit of being a fairly simple computation. Yet, its main flaw is that it doesn't take into account the company's potential for future financial success. Thus, this strategy is often only used as a very last resort.

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…is part of the marketing mix where the methods of providing a service is used.
O Physical evidence
Process
O Place
O Promotion

Answers

Answer:

the 1st one

Explanation:

physical evidence process

2. You now have Birr 2,000,000 in the bank earning interest of .5 percent per month. You need Birr 3,000,000 to make a down payment on a house. You can save an additional Birr 10,000 per month. How long will it take me to accumulate the Birr 3,000,000?

Answers

The number of months that it would take me to accumulate the Birr 3,000,000 is 50 months.

How many months would it take to accumulate 3,000,000?

The equation that represents the total amount saved :

Total amount =amount invested +  total interest earned + total amount earned

Total interest earned = amount invested x time x interest rate

2,000,000 x 0.005 x m = 10,000m

Total amount earned = savings per month x total number of months

10,000m

3,000,000 = 2,000,000 +  10,000m + 10,000m

3,000,000 - 2,000,000 = 20,000m

1,000,000 = 20,000m

m = 50 months

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Question 8 of 10
A payroll register lists the total current period earnings as $40,500. It lists the
total withholdings and deductions as $10,540. When the payroll journal
entries are posted to the general ledger, how is the Cash account affected?
A. It is decreased by a $10,540 debit.
B. It is increased by a $40,500 credit.
C. It is increased by a $51,040 debit.
OD. It is decreased by a $29,960 credit.
SUBMIT

Answers

When payroll journal entries are posted to the general ledger, the Cash account is decreased by a credit of $29,960 (the difference between $40,500 and $10,540). This is because the total earnings of $40,500 are recorded as a debit to an expense account (such as Salaries and Wages Expense), while the total withholdings and deductions of $10,540 are recorded as a credit to a liability account (such as Payroll Taxes Payable). The net amount of $29,960 ($40,500 - $10,540) represents the actual cash paid out by the company for payroll expenses

Answer: D. It is decreased by a $29,960 credit

Explanation:

PLEASE HELP!!!!!!!!!!

Methods that can be used to increase document readability include _____.


1. columns


2. more special effects


3. boxes


4. shorter lines


5. longer lines


6. contrast


7. lots of white space


Rules answering this question:


⇒ It should be possible to select more than one answer.


⇒ Explain your answer!


⇒ Nonsense answer will be reported.


⇒ Incorrect answer will be reported.


Thanks!

Answers

Methods that can be used to increase document readability include is adjust space between column add contrast.

Requirements vary by document type and include standards for resolution, color and file format, as well as minimum metadata that needs to be clear when scanning.

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If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of?

Answers

The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of  1.8 percent of its assets.

What do you mean by Duration Gap?

Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.

Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.

Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.

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• Vitamins B and C are found in two different foods F1 and F2. One unit of food F1 contains 2 units of B and 3 units of vitamin C. one unit of food F2 contains 4 units of B and 2 units of vitamin C. one unit of food F1 and F2 costs $3 and $2.5 respectively. • The minimum daily requirement (for a person) of vitamin B and C is 40 and 50 units respectively. Assuming that anything in excess of daily minimum requirement of vitamin B and C is not harmful. ● Find out the optional mixture of food F1 and F2at the minimum cost which meets the daily minimum requirement of vitamins B and C. Formulate this as a linear programing problem.​

Answers

Using linear programming, the optional mixture at minimum cost is x,y ≥ 0

What is Optional Mixture at Minimum Cost

Optional mixture at minimum cost is a process of combining a variety of materials, such as concrete, sand, gravel, and other aggregates, in order to create a mixture that is more cost-effective than buying the individual components separately. This type of mixture can be used in construction projects, road paving, and landscaping projects in order to save money.

Solving this mathematically with linear programming;

Let x be the number of units of food F1 and y be the number of units of food F2.

Minimize cost: z = 3x+2.5y

Subject to:

2x + 4y ≥ 40 (minimum requirement of vitamin B)

3x + 2y ≥ 50 (minimum requirement of vitamin C)

x,y ≥ 0 (non-negative constraint)

The linear programing problem is:

Minimize z = 3x+2.5y

Subject to:

2x + 4y ≥ 40

3x + 2y ≥ 50

x,y ≥ 0

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Based on this home-buying situation: (a) What questions might Zoe and Luis be asked about their home-buying experience? (b) What lessons did you learn from their experience?

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(a) The Zoe and Luis share the home-buying experience are:

Firstly, difficult to as preference home to purchase. Secondly to difficult, the transaction of the money as the medium of the online cash transaction.

(b) Someone learns to the experience as the online transaction is too difficult as the purchase of the home as cash transaction are easier.

What is home?

The term "home" refer to the resident, the family are they stay with in the permanently. The home, another name, is the house. There are the two types of the home, permanent homes and rental homes.

(a) The Zoe and Luis share the home-buying experience are more difficult to search the home and the registry time as the transaction of the online are more difficult.

(b) Someone as to learn to the cash transaction are the more easily as compare to the online transaction. The fraud case chances are the more.

As a result, the home-buying experience as the aforementioned.

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The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)

Answers

Since Period 2 is the base year, so, index number for Period 2 will be 100 for the given information in Expenditure table.

for period 1 ,

Total Expenditure = $3,100

Index Number = 3100/3350×100

                        =92.537

for period 2,

Total Expenditure = $3,350

Index Number = 3350/3350×100

                        = 100

for period 3,

Total Expenditure = $3,400

Index Number = 3400/3350×100

                        = 101.492

for period 4,

Total Expenditure = $3,500

Index Number = 3500/3350×100

                        = 104.47

Index numbers are statistical measures that express changes in the value of a variable or a group of variables over time. They are used to compare the value of a particular variable at different points in time or across different regions or groups. Index numbers are useful in economics and other fields where there is a need to track changes in the value of a variable over time or across different units of observation. Common examples of index numbers include price indices, inflation indices, and stock market indices.

the complete question is:

The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)

                      Total Expenditure        Index Number

Period 1            $3,100

Period 2            $3,350

Period 3            $3,400

Period 4             $3,500

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3. As a project manager, you email all team members requesting their feedback on processes and their preferred
method of collaboration. Which aspect of effective team building does this scenario demonstrate?

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The aspect of aspect of effective team building does this scenario demonstrates is "Promote psychological safety" (Option D)

What is Effective Team Building?

Team development is a continuous process that assists a work group in becoming a cohesive one. Not only do team members share expectations for completing group work, but they also trust and support one another and appreciate one another's distinctive characteristics.

It fosters trust, reduces conflict, promotes communication, and fosters collaboration. Effective team building results in more engaged employees, which is beneficial to corporate culture and the bottom line. It may also be exciting and fun if done with a little flair.

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Full Question:

Although part of your question is missing, you might be referring to this full question:

As a project manager, you email all team members requesting their feedback on processes and their preferred method of collaboration. Which aspect of effective team building does this scenario demonstrate?

Answers

Prioritize tasks

Listen and ask questions

Celebrate team success

Promote psychological safety

The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certain statistical data related to the income statement as follows.


1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year.
2. Sales discounts amount to $17,000.
3. 20,000 shares of common stock were outstanding for the entire year.
4. Interest expense was $20,000.
5. The income tax rate is 30%.
6. Cost of goods sold amounts to $500,000.
7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales.
8. Four-fifths of the operating expenses relate to sales activities.

From the foregoing information prepare an income statement for the year 2014 in single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 2,520.)

Answers

Answer:

LeRoi Jones Inc

Income statement for the year 2014

Sales (100/8 × $100,000)                                                 $1,250,000

Less Cost of Sales

Beginning merchandise                                  $92,000

Add Purchases                                               $481,600

Less Ending merchandise ($92,000 - 20%) ($73,600)  ($500,000)

Gross Profit                                                                         $750,000

Less Expenses :

Sales Discounts                                                  $17,000

Interest expense                                               $20,000

Administrative expenses ($500,000 × 20%) $100,000 ($137,000)

Profit before tax                                                                  $613,000

Income tax expense at 30%                                             ($183,900)

Net Income / Loss                                                              $429,100

Earnings Per Share                                                                 $21.46

Explanation:

Notes on income statement preparation

Use the statistical data to fill in the line items of the Income Statement as shown above.

For the Calculation of Sales, first calculate the administrative expenses. Apply the 8% on the administration cost to find sales at 100%.

Earnings Per Share = Earnings attributable to holders of Common Stock ÷ Weighted Average Number of Common Stock

                                = $429,100 ÷ $20,000

                                = $21.46

what is the change in total profit of cleaning the fifth driveway if the price Mr. Plow can charge is $10 per driveway

Answers

Answer:

Explanation:-1

James Sebenius identifies mistakes that negotiators make that keep
them from solving the right problem. Identify which mistake is being described.

Relationships, process, and interests are neglected - the primary negotiation factor is economic.

Group of answer choices

Failing to Correct for Skewed Vision.

Searching Too Hard for Common Ground.

Neglecting BATNAs.

Letting Price Bulldoze Other Interests.

Answers

Common ground in talks, which helps with the main negotiation component of economics, enables parties with disparate interests to give each other what they value most at the lowest possible cost.

what are the Six Habits of Merely Effective Negotiators?Neglecting the other side's problem:

You can't address either of your problems or the problem of the other party if you don't comprehend the agreement from their point of view.

Letting price bulldoze other interests:

Most business transactions have interests than money.

Letting positions drive out interests:

Incompatible stances can conceal similar interests. Your "opponent's" loss need not necessarily be their benefit.

Searching too hard for common ground:

While common ground is helpful in negotiations, divergent interests can provide each party what they value most while causing the least amount of harm to the other.

Neglecting BATNAs:

BATNAs, or "best alternative to a negotiated agreement," describe your course of action in the event that the intended agreement cannot be reached.

Failing to correct for skewed vision:

Summary: Role bias and partisan views are two types of bias that can cause mistakes.

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10. Which of the following is characteristic of a traditional economy?

Answers

Answer:The five characteristics of a traditional economy are: Centering around a family or tribe Existing in a hunter-gatherer and nomadic society Producing only what it needs Relying on a barter system Evolving once it starts farming and settling

Explanation:

8. What was the result of John overdrawing his checking account?

Answers

Based on John overdrawing his checking account, John’s payment was greater than the balance he had available in his account so he was charged a $35 fee.

What happens when an account is overdrawn?

From the statement of John's account given, we can see that John made a payment of $710.49 that was more than he had in the account.

As a result, he overdrew his account and took it to a negative balance. He will therefore have to pay an overdraft fee of $35.

Options for this question are:

John’s payment was greater than the balance he had available in his account so the bank will deposit $237.81 into John’s account so he can pay his bills.John’s payment was greater than the balance he had available in his account so he was charged a $35 fee.John’s payment was greater than the balance he had available in his account so he was charged a $5 monthly maintenance fee.John’s payment was greater than the balance he had available in his account so the bank will transfer $35 from a linked account.

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You notice that a forklift is starting to sound strange, and this typically indicates the forklift may be going bad. You do not want to stop your work because your team’s performance will suffer as a result. If you fix it now, it will take 10 minutes. However, if it breaks, it will likely take a few hours to fix

Answers

A forklift is starting to sound strange, You do not want to stop your work because your team’s performance will suffer as a result. If you fix it now, it will take 10 minutes. However, if it breaks, it will likely take a few hours to fix is soon as possible. Thus, option (d) is correct.

What is forklift?

The term forklift refers to the powered industrial truck are the used in the industrial truck to load the raw material. The invention of the 20th century, was the mainly used in the industrial sector.

According to the facts of the case, When driving a loaded forklift on ramps with a 10% gradient or higher, you should always keep the cargo upward, even if it means going in reverse along the ramp. It took a few hours to correct, but it only took 10 minutes.

As a result, the significance of the forklift are the aforementioned.

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Your question is incomplete, but most probably the full question was.

How soon should repairs be made on a forklift?

a. At the next scheduled maintenance time

b. At the end of the operator’s shift

c. Whenever the forklift is not need to perform tasks

d. As soon as possible

Magnificent Blooms is a florist specializing in floral arrangements for weddings, bo graduations, and other events. Magnificent Blooms has a fixed cost associated with space and equipment of $100 per day. Each worker is paid $50 per day. The daily production § function for Magnificent Blooms is shown in the accompanying table. © Macmil Submit All Quantity of labor (workers) 0 1 2 3 4 5 a. Calculate the marginal product of each worker. Quantity of floral arrangements 0 5 9 12 14 15 Marginal product Quantity of labor (workers) 1 2

Answers

The marginal product of each worker for Magnificent Blooms is as follows: Worker 0: N/A: Worker 1: 5: Worker 2: 4: Worker 3: 3: Worker 4: 2: Worker 5: 1

To calculate the marginal product of each worker for Magnificent Blooms, we need to determine the change in the quantity of floral arrangements resulting from each additional worker.

Here's how to calculate the marginal product for each worker:

Worker 0: Since there are no workers (0 workers), the quantity of floral arrangements is 0. Therefore, the marginal product for worker 0 cannot be calculated.

Worker 1: The quantity of floral arrangements with 1 worker is 5. To calculate the marginal product for worker 1, we subtract the quantity of floral arrangements with 0 workers from the quantity with 1 worker: 5 - 0 = 5.

Worker 2: The quantity of floral arrangements with 2 workers is 9. To calculate the marginal product for worker 2, we subtract the quantity of floral arrangements with 1 worker from the quantity with 2 workers: 9 - 5 = 4.

Worker 3: The quantity of floral arrangements with 3 workers is 12. To calculate the marginal product for worker 3, we subtract the quantity of floral arrangements with 2 workers from the quantity with 3 workers: 12 - 9 = 3.

Worker 4: The quantity of floral arrangements with 4 workers is 14. To calculate the marginal product for worker 4, we subtract the quantity of floral arrangements with 3 workers from the quantity with 4 workers: 14 - 12 = 2.

Worker 5: The quantity of floral arrangements with 5 workers is 15. To calculate the marginal product for worker 5, we subtract the quantity of floral arrangements with 4 workers from the quantity with 5 workers: 15 - 14 = 1.

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If the economy were run with a strictly Keynesian point of view, what would the government's role be in regards to the U.S. economy?
a. The government is responsible for managing the economy.
b. The government is responsible for monitoring the economy but not interfering with it.
c. The government is responsible for managing the economy with a hands-off approach.

Answers

Answer:

A.

Explanation:

The keynesian prescription for stabilizing the economy implies government intervention at macroeconomic level-increasing aggregate demand when private demand falls and decreasing aggregate demand when private demand rises.

ABC Limited entered into a contract with XYZ (Pty) Ltd for the supply of electricity to the plant of XYZ situated in Walvis Bay Namibia. The contract will come into effect on the 01 June 2020 for a period of 3 years. ABC Limited is expected per the contract to provide the electrical transformer to XYZ, as well as two electrical engineers will be sourced out to XYZ for the maintenance of the electricity supply to XYZ’s plant. ABC Limited usually sells transformers at the price of NAD 1,500,000.00; however, they will be providing the transformer to XYZ Limited free as part of the contract. ABC Limited only source out their engineers to their clients that have entered into the electricity supply contract with them. The contract stipulated the prices to XYZ as below: Monthly electricity cost NAD 175,000.00 Engineers support monthly cost NAD 120,000 XYZ may use electricity to no limit. The monthly electricity cost is at a fixed monthly rate. The appropriate nominal interest rate applicable to the internet service provision contracts is 10% per annum, compounded monthly. It remains fixed for the full period of the contract.

REQUIRED

a) Provide the journal entries to account for the contract with XYZ (Pty) Ltd in the records of ABC Limited for the year ended 31 December 2020. Journal entries are to be provided on each relevant date (do not accumulate amounts for the year).​

Answers

Answer:

HOPE IT'S HELP YOU

Explanation:

I'M SORRY IF THE PICTURE IS SO BLURRY.

ABC Limited entered into a contract with XYZ (Pty) Ltd for the supply of electricity to the plant of

a corporation may repurchase its shares of stock because management

Answers

Answer: the management believe that the stock is undervalued

Explanation:

with an example, explain why a substantive disagreement may never be resolved

Answers

A substantive disagreement can never be resolved because of the differing opinions of the people involved.

What is a substantive disagreement?It is a disagreement between two or more people.It is a disagreement between people with different opinions and points of view on the same subject.

If the people involved in the substantive disagreement are quite sure that their views are correct, that substantive disagreement can never be resolved, because none of the people involved will surrender to their opponents' point of view.

An example of this is two people arguing over whether the best pet is a cat or a dog, and each person wants to defend one of those animals.

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(5 points)
Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.
Sales this year were $280,750 with a guest count of 83,556.
What was Willie's guest count percentage variance?

Answers

Willie's guest count percentage variance is 9.82%.

How to calculate guest count percentage

To calculate the guest count percentage variance

Use the following formula:

Guest count percentage variance = [(current year guest count - prior year guest count) / prior year guest count] x 100%

Guest count percentage variance = [(83,556 - 76,079) / 76,079] x 100%

Guest count percentage variance = (7,477 / 76,079) x 100%

Guest count percentage variance = 0.0982 x 100%

Guest count percentage variance = 9.82%

Therefore, Willie's guest count percentage variance is 9.82%.

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Sponsorship is an effective marketing strategy, particularly for sporting goods and recreational equipment.

Answers

Answer:true

Explanation: just took the test

g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving

Answers

Answer: Risk averse

Explanation:

A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.

Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.

Gomez argues that we need to increase the nation's output. Chang contends that our top priority should be a more equal distribution of income and output. It can be correctly stated that these two goals are:
A. essentially unrelated.
B. complementary because the realization of one will promote fulfillment of the other.
C. at least partially competing because the redistribution of income might impair incentives to work and produce.
D. complementary because a more equal distribution of income always promotes economic growth.

Answers

Answer:

I can't understand the question

Why do managers ask employees to check inventory lists?

A.
to keep employees busy when there is little work to do

B.
to discover which items employees like the best

C.
to find out which items are most and least expensive

D.
to find out if any items that should be for sale are stolen or lost

Answers

the answer is the last answer D

the process of deciding what should be done, how and when it should be done and who should do it is known as

Answers

Answer:

Planning.

Explanation:

Management involves the control, planning and organization of the affairs of a business firm.

Basically, the management of an organization is saddled with the responsibility of planning, organizing, controlling and staffing within the organization.

The four (4) main management activities are;

I. Organizing

II. Controlling

III. Motivating.

IV. Planning.

Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

This ultimately implies that, planning is a strategic process which typically involves deciding what should be done, how and when it should be done and who should do it.

Mazu Mavuso is a 43-year-old South African resident who was employed by Veg & Fruit Limited, a South African company, until 30 November 2022. On 30 November 2022, Veg & Fruit Limited ceased its operations and the pension fund that Veg & Fruit Limited established for its employees also closed down. The Veg & Fruit Limited pension fund paid out R80 000 to Mazu Mavuso during the 2023 year of assessment. All Mazu Mavuso's pension fund contributions have been deducted in the determination of his taxable Income. Mazu Mavuso also decided to join a retirement annuity fund, to which he made a total contribution of R7 000 during the 2023 year of assessment. For the 2023 year of assessment, Mazu Mavuzo's receipts and expenses were as follow: Salary Director's fees earned Local dividends from South African companies Local interest from a non 'tax free investment' Pension fund contributions at 6.5% of his salary Retirement annuity fund contributions Qualifying medical expenses paid Donation to a qualifying section 18A Public Benefit Organisation R 720 000 110 000 45 000 24 500 ? 7 000 61 630 6 000 Calculate Mazu Mavuso’s taxable income for the 2023 year of assessment. (25 marks) 1.2) Calculate Mazu Mavuso’s total normal tax liability for the 2023 year of assessment. Assume that Mazu Mavuso had a taxable income of: • R770 900 before any retirement fund lump sum withdrawal benefits. • R843 900 after any retirement fund lump sum withdrawal benefits. (17 marks) Competency Framework Reference: E1.2 Interpretation of tax legislation b) Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation. E1.3 Application of tax legislation to calculate tax obligation a) Analyse the taxpayer’s tax profile. c) Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies.​

Answers

Explanation:

to calculated this question to solve

A CEedit card's Minimum monthly payment refers to
A. the miniIM amount of changes made to a credit score each
month.
B. the minimum amount a borrower must pay back each month.
) C. the minimum anmount of interesta credit card will charge each
month.
D. the minimum amount of purchases a customer must nmake each
month

Answers

Answer:

B. the minimum amount a borrower must pay back each month.

Explanation:

A credit card is the credit facility that the credit card company issues to the credit cardholder. The credit card facilities allow the cardholder to make payments for goods and services on credit up to a set limit.  Sine credit card is a debt; the credit card company issues a statement at the end of every month to claim payments from the cardholder.

The credit card statement contains the outstanding statement balance and the minimum monthly payment. The customer is advised to clear all the outstanding balance to avoid interest fees. However, if the customer cannot settle the entire balance, they must pay the minimum balance. Failure to pay the minimum balance is defaulting on the credit card and comes with heavy penalties.

Answer:

the minimum amount a borrower must pay back each month.

Explanation:

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