Ask Question
BusinessBusiness
12 February, 19:49

Suppose medical research confirms earlier speculation that red wine is good for you. Why would banks be willing to lend to vineyards that produce red wine at a lower interest rate than before?

+4
Answers (2)
  1. 12 February, 19:54
    0
    Answer:The future prospects for the vineyards have improved, reducing the risk involved in lending to them.

    Explanation: Banks and other financial institutions will lend more money to Businesses with better future prospects because they know that the ability to pay back the loan will be guaranteed. They will also easily give out loan to such a business organization because they are also aware the the risk of not paying back the loan amount is reduced, they also going to give out such low interest loans because they will want to encourage others similar Businesses to patronize their services.
  2. 12 February, 19:58
    0
    Answer and explanation:

    In case medical researches confirm red wine is good for the human body, banks are likely to offer vineyards that produce red wine loans at lower interest rates to promote larger borrowings. Banks will not be losing money with lower interest rates. They will be earning more, instead, if more vineyards start investing more and in larger amounts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose medical research confirms earlier speculation that red wine is good for you. Why would banks be willing to lend to vineyards that ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Residual Income The Commercial Division of Galena Company has operating income of $62,240 and assets of $228,000. The minimum acceptable return on assets is 7%. What is the residual income for the division?
Answers (1)
The ceo of perry's pizzeria, a rapidly growing restaurant chain, is committed to a high level of corporate social responsibility along with continued business success.
Answers (1)
During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $1.5 million of raw materials during the next fiscal year under this contract.
Answers (1)
In 2019, a marketing manager for New Balance's Fresh Foam Zante shoe needs to forecast sales through 2021.
Answers (2)
Select the item that can be answered by using knowledge. 1. A transaction's order date, amount sold, and quantity ordered 2. Taking into account external reasons for the recent underperformance of a good salesperson 3.
Answers (1)
New Questions in Business
Using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand.
Answers (1)
McKinney Corporation had beginning retained earnings of $2,242,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. No dividends were paid.
Answers (1)
Why might Business classification and behavior change?
Answers (1)
Which of the following statements is true of expatriate managers? a. They are managers who work abroad. b. They are managers who work in domestic firms. c. They are managers who work for the emerging economies they are a part of. d.
Answers (1)
An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has become quite elastic--as consumers see competing products as almost homogeneous. Several firms have dropped out.
Answers (1)
Home » Business » Suppose medical research confirms earlier speculation that red wine is good for you. Why would banks be willing to lend to vineyards that produce red wine at a lower interest rate than before?
Sign Up Forgot Password?