THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 107

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The probability that interest rates on housing loans will go up in the next 6 months is estimated to be 0.20.The probability that house sales will decrease is estimated to be 0.6.The probability that interest rates will go up and house sales will decrease is estimated to be 0.15.
-The probability of not an increase in interest rates and not a decrease in house sales is:

• A)0.50
• B)0.35
• C)0.20
• D)0.05

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Definitions:

Noncash Assets

Assets that are not in the form of cash or easily convertible into cash, such as property, plant, and equipment.

Total Capital

The sum of a company's debt and equity, representing the total funds available for the business to use.

Partners' Equity

The owners' claim or interest in the assets of a partnership, after all liabilities have been subtracted.

Capital Account

An account used in economics and finance to track the net changes in a nation's assets and liabilities or a company's equity provided by shareholders and retained earnings.