Concept explainers
a.
To state: Whether society gets richer in case housing prices are doubled across the world.
Introduction:
Real assets: Any asset which has a physical shape with a financial worth can be termed as real assets. Land, building, plant, machinery, natural resources, etc. are some of the examples of real assets.
b.
To state: Whether the homeowners will get rich if the housing prices are doubled.
Introduction:
Real assets: Any asset which has a physical shape with a financial worth can be termed as real assets. Land, building, plant, machinery, natural resources, etc. are some of the examples of real assets.
c.
To reconcile: The effect of housing prices being doubled in the case of society and house owners getting richer.
Introduction:
Real assets: Any asset which has a physical shape with a financial worth can be termed as real assets. Land, building, plant, machinery, natural resources, etc. are some of the examples of real assets.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
INVESTMENTS-CONNECT PLUS ACCESS
- What are some similarities that you can identify between the US housing market before the financial crisis in 2007-08 and the current Canadian housing market?arrow_forwardWhy do you think future generations might complain about having to pay for capital projects?arrow_forwardIs taxing the rich better?arrow_forward
- When you reward the talents of society values, does it govern social and economic inequalities?arrow_forwardIf individuals believe their income will decrease in the near future, they may _____________ their spending? eliminate curtail increase doublearrow_forwardLet's say that interest rates on housing loans and hire purchases are falling significantly. So is it recommended from a financial planner's point of view that households should be encouraged to take more debt?arrow_forward
- Which of the following is the principal risk faced by a home equity lender? a. Interest rates in the economy may fall b.Home prices in the area may decline c.Interest rates in the economy may rise d.Home prices in the area may risearrow_forwardIn evaluating economic progress in reducing poverty, which is the better measure – growth in income or reduction in mortality and why? Is increasing income typically associated with an increase in well-being? Describe the mechanism that is at work?arrow_forwardWithin the context of the real estate bubble burst of around 2008, consider the follpwing statements and answer the questions Managers at some banks and mortgage companies have argued that providing subprime mortgages was based on their desire to give poor people a chance to participate in the American dream of home ownership. What is your opinion of this explanation in terms of ethics and social responsibility? What ethical principles or approaches support your opinion?arrow_forward
- Describe how Social Security is a “pay-as-you-go” system. How do dependency ratios help us project future contributions to and payouts from Social Security? Can Social Security continue to run as a purely pay-as-you-go system in the future? Explain.arrow_forwardAccording to the Standard and Poor's Global Financial Literacy Survey only 4% of children from low-income families will break the cycle of poverty and break into the upper middle class. How does not breaking out of the cycle pf poverty affect their investment planning options?arrow_forwardHow can we Analyze Expected House Prices?arrow_forward
- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage