Credit Card A
Comparing Two Credit Card Offers
Credit Card B
3.99% APR for the life of transferred
balances; 13.25 % APR for all other
purchases
0,00% APR for 6 months; 19.8%
APR for remaining lifetime of card
$50 annual fee; $25 fee for late
payments
No annual fee; $25 fee for late
payments
Minimum monthly payment of $15 or
10% of balance
Monthly balance must be paid in
full each month
Must pay card by the 15th day of the
month
Set your own payment date
Rewards program: $10 shopping card
with each $1,000 in spending
Rewards program: Earn 1% cash
back on all purchases

Step 1: What are the Annual Percentage Rates (APR) of credit card A'and credit card B?

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.