If the exchange rate is 1 mexican peso for $.075 u.s.The necklace in u.s. dollars is $75.
How is the peso value determined?
The Purchasing Power of the Peso (PPP) measures how much the peso from the base era is worth today. It is calculated by multiplying the CPI's reciprocal for the time period under consideration by 100. Inflation rate and PPP have the opposite relationships. Thus, PPP decreases when the rate of inflation rises.
The equation is as follows: Exchange Rate = Starting Amount (Original Currency) / Ending Amount (New Currency). The conversion rate, for instance, would be 0.75 if you were to swap 100 US dollars for 75 Euros. However, the conversion rate would be 0.75 if you were to convert 75 Euros for 100 US Dollars. Determine the sum in foreign currency.
100 USD is 1880.92000 MXN.
0.75 * 100 = $75.
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jerry has a $3,000,000 umbrella policy. he is involved in a car accident and is found to be responsible for $400,000 in property damages. his car insurance liability limit is $300,000. how much money will his umbrella insurance policy pay out in this case?
The umbrella insurance policy will pay out $100,000 in this case.
Insurance liability refers to the legal responsibility or obligation of an individual or entity to pay for damages or losses caused to another person or property.
It is a type of insurance coverage that protects policyholders from financial losses resulting from claims of negligence or wrongdoing
The umbrella policy has a coverage limit of $3,000,000.
The car insurance liability limit is $300,000.
The total amount of damages caused by Jerry is $400,000.
To find out how much the umbrella policy will pay out, we need to subtract the car insurance liability limit from the total amount of damages: $400,000 - $300,000 = $100,000.
Therefore, the umbrella insurance policy will pay out $100,000 in this case.
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a project is expected to generate a cash flow of $2,000 in year 1, $800 in year 2, and $1,000 in year 3. at an interest rate of 10%, what is the maximum amount that you could invest in the project at year 0?
Cash flow from a project is anticipated to be $2,000 in year one, $800 in year two, and $1,000 in year three. the highest sum that is conceivable, permitted, or necessary, at a 10% interest rate.
Whats does maximum mean?The largest amount or value that can be obtained or attained.: the height, peak, or apogee of development.: the highest amount or value that can be permitted or allowed by a legal authority (as by the circumstances of a particular case) . A fence or hedge can only be two metres tall according to planning law. With the most points, China took the top spot. Maximum prison sentences under the law are two years.
The minimum and maximum durations are 12 and 60 hours, respectively. The maximum payable rate rule is a unique regulation that permits an agency to set a General Schedule (GS) employee's pay at a rate higher than the rate that would be determined in accordance with standard regulations, based on a higher rate of pay the employee had previously received in another Federal job.
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The project would be: $2,000 / (1 + 0.1)^1 + $800 / (1 + 0.1)^2 + $1,000 / (1 + 0.1)^3.
What is the maximum amount that you could invest in the project at year 0?To calculate the maximum amount that could be invested in the project at year 0, the net present value (NPV) of the project must be determined. The NPV is a measure of the value of the project in today's dollars, taking into account the time value of money.The formula for NPV is as follows: NPV = (cash flow in year 1 / (1 + interest rate)^1) + (cash flow in year 2 / (1 + interest rate)^2) + (cash flow in year 3 / (1 + interest rate)^3)Plugging in the given values, the NPV of the project would be: $2,000 / (1 + 0.1)^1 + $800 / (1 + 0.1)^2 + $1,000 / (1 + 0.1)^3The NPV of the project is negative, which means that the project is not generating enough cash flow to cover its costs, so the maximum amount that could be invested in the project at year 0 is the amount of the negative NPV.To make sure that the project is not losing money, the investor should not invest in the project if the NPV is negative.To learn more about project refer:
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Consider the following schedule. If the potential GDP is at 8. 0, what can you conclude about price levels and the unemployment rate? Current Price Level Real GDP-quantity demanded per trillion Real GDP-quantity supplied per trillion 120 17. 0 8. 0 115 15. 0 15. 0 110 13. 0 12. 0 100 10. 0 11. 2
The right formula to get the unemployment rate is the total high level of unemployment divided by the total labor force, multiplied by 100.
What does pricing mean?or each individual commands a fee. It is rumored that if someone offers them enough money, they can induce anyone to do something immoral or dishonest. There are always some who have, despite the fact that it may entirely true that now every man has a price. Simple Idioms Dictionary for Learning.
What's a price quotation?A cost proposal is a document prepared with both the buyer and the seller in mind. It serves as a formal breakdown of prices for a sale or job and is prepared by the company or service provider. Prices are often provided in writing upon request. When a client requests
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True or false? Because people respond to incentives, we would expect that if the average salary of accountants increases by 50 percent while the average salary of teachers increases by 20 percent, students will shift majors from education to accounting.
The statement "Because people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, students will shift majors from education to accounting" is True because funded by local tax.
The incentives are the amount of money which is given to the employee or worker to achieve the targeted goal and it is the motivated things to give from the organization or firm to the employees.
Because people respond to incentives, we would expect that if the average salary of accountants increases by 50 percent while the average salary of teachers increases by 20 percent. This is why, due to the local taxes which is given to teacher.
On the other hands, accountants gets incentives due to the firm's profit.
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the cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial accounting information should always be provided.T/F
False. The cost constraint suggests that the cost of providing accounting information should not exceed the benefit it provides.
What is accounting ?Accounting is the process of recording, classifying, summarizing, analyzing, and interpreting financial information. It is also used to measure the performance of an organization and to prepare financial statements for external users. Accounting involves tracking income and expenses, preparing financial statements, preparing tax returns, and providing advice on financial matters
If the cost of providing accounting information exceeds its benefit, then financial accounting information should not be provided.
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on january 1 of the current year, tree co. enters into a five-year lease agreement for production equipment. the lease requires tree to pay $12,500 per year in lease payments. at the end of the five-year lease term, tree can purchase the equipment for $30,000. the fair value of the equipment is $75,000. the estimated useful life of the equipment is 10 years. the present value of the lease payments is $50,000. the present value of the purchase option is $20,000. tree's controller believes the purchase option price is sufficiently below the expected fair value of the equipment at the date the option becomes exercisable to reasonably assure its exercise. tree would normally depreciate equipment of this type using the straight-line method. what amount is the carrying value of the asset related to this lease at december 31, of the current year?
The carrying value of the asset related to the lease at December 31 of the current year is $12,500.
What is the concept of present value?
This question uses the concept of present value, wherein the current value of future cash flows is calculated. The present value of the lease payments is calculated by subtracting the present value of the purchase option from the expected fair value of the equipment at the end of the lease term.
The carrying value of the asset related to the lease is then calculated by adding the present value of the lease payments and the present value of the purchase option and subtracting the expected fair value of the equipment at the end of the lease term.
The carrying value of the asset related to the lease at December 31 of the current year can be calculated as follows:
1. Determine the total lease payments over the five-year term:
Lease Payments = $12,500 x 5
= $62,500
2. Determine the present value of the lease payments:
Present Value of Lease Payments = $50,000
3. Determine the present value of the purchase option:
Present Value of Purchase Option = $20,000
4. Determine the expected fair value of the equipment at the end of the lease term:
Fair Value of Equipment = $75,000
5. Determine the carrying value of the asset related to the lease:
Carrying Value of the Asset = Present Value of Lease Payments + Present Value of Purchase Option - Fair Value of Equipment
= $50,000 + $20,000 - $75,000
= $12,500
Therefore, the carrying value of the asset related to the lease at December 31 of the current year is $12,500.
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which of the following phrases does not describe an essential characteristic of a factory? a. produces a standardized product to be sold in a wide market b. relies on stocks and bonds in order to finance plants and machinery c. assemble workers under a definite organizational discipline d. carries out complex operations in one building or in adjacent buildings
This sentence does not describe the essential features of the factory in option (b). Rely on stocks and bonds to finance factories and machinery
A factory is a building or group of buildings where goods are manufactured or assembled primarily by machines rather than by humans. Hundreds of workers can be recruited to work in large factories owned by capitalists.the following statements describe the key function of a factory Producing standardized products that are sold in various markets to organize workers under certain organizational disciplines. Perform complex operations on buildings or adjacent buildings
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Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
(1st column) Price
(2nd column) Quantity Demanded by Business Travelers
(3rd column) Quantity Demanded by Vacationers
(Dollars)
(Tickets)
(Tickets)
150 2,100 1,000
200 2,000 800
250 1,900 600
300 1,800 400
As the price of tickets rises from $250 to $300, the price elasticity of demand for business travelers is 0. 30, and the price elasticity of demand for vacationers is 2. 20, using the midpoint method. Therefore, the demand for airline tickets in this price range is more elastic for vacationers because business travelers are less sensitive to changes in price
For business travelers and tourists, respectively, the pricing will be 0.23 and 1.29. For tourists, consumption might be delayed, but not for business travelers.
What do you consider to be business?Any individual who creates goods or renders services with the objective of reselling them for such a profit is conducting business. Organization Definition. A creative entity or group that conducts business operations is referred to as a business. They could be industrial, commercial, or of another kind.
Which business has the fastest growth?The food industry is a significant component of India's fastest-growing industry. The traditional food industry sells agricultural goods and services. Nevertheless, as urbanization increases, the new notion of
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true oe false the closing process within accounting consists of temporary accounts, whose balances only reflect transactions and activities that occurred during the current fiscal year, and permanent accounts that exist year over year within the balance sheet.
The closing process within accounting consists of temporary accounts, whose balances only reflect transactions and activities that occurred during the current fiscal year, and permanent accounts that exist year over year within the balance sheet - True.
At the conclusion of an accounting cycle, closing entries are made as a series of journal entries. These temporary account balances are converted into permanent entries on the company's balance sheet by the closing entries. As a result, the temporary accounts' balance is reset to zero and the subsequent accounting period is now ready to start.
The four steps involved in closing?
Reconcile revenue sources with the income summary. A temporary account called Income Summary is employed while the transaction is being closed.Reconcile spending accounts with the income summary.Immediately follow Income Summary with Retained Earnings.Dividends that are close to retained earnings.For such more question on accounts:
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The closing process in accounting involves both permanent accounts that are present in the balance sheet year after year and temporary accounts, the balances of which only reflect transactions and activities that took place during the current fiscal year.
The statement is true
A series of journal entries are created as closing entries at the end of an accounting cycle. The closing entries transform these transient account balances into long-term representations on the balance sheet of the company. The balance of the temporary accounts is therefore reset to zero, and the next accounting period is now ready to begin. Match up on the income summary and the revenue sources. While the transaction is being closed, Income Summary is used as a temporary account.Reconcile your spending to your income.To learn more about accounts here
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according to the american marketing association, the function that links an organization to its market through the gathering of information is known as
According to the American Marketing Association, the function that links an organization to its market through the gathering of information is known as Marketing Research.
Marketing research is the systematic collection, recording, and analysis of qualitative and quantitative data about marketing products and services concerns. The purpose is to identify and analyse how changing marketing mix elements affect customer behavior.
This includes describing the data needed to solve these concerns, creating the method for collecting information, controlling and implementing the data gathering process, and finally implementing the data collection process.
After reviewing the acquired data, the conclusions and findings, as well as their consequences, are transmitted to those with the authority to act on them.
Market research, marketing research, and marketing are all commercial operations that are occasionally performed informally. Marketing research has a considerably longer history than market research.
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in general, higher level capabilities that involve cross-functional integration are the more strategically important because they are more difficult for rivals to replicate. [see pp.124-126] group of answer choices true false
Higher level capabilities that require cross-functional integration are typically more strategically significant because it is harder for competitors to copy them. The given statement is False.
What do you mean by higher level capabilities?
Higher level capabilities refer to the advanced skills and abilities of an individual. These include complex cognitive processes such as problem solving, critical thinking, and decision making. Higher level capabilities also encompass social and interpersonal skills such as communication, negotiation, and leadership. They are often the skills employers value most and are the ones that can help job seekers stand out from the competition. Higher level capabilities are essential for success in the workplace and can help individuals to excel in their roles and advance their careers.
So, The required answer is False.
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provides information for decision makers outside of the organization
Managerial accounting is concerned with providing information to external decision makers. Stockholders primarily use managerial accounting information to make decisions.
When Should Managerial Accounting Be Used?Managerial accounting is the type of accounting that provides financial information to company or organization managers and decision-makers. Managerial accounting, such as weekly or daily budgeting, is used to assist managers in making decisions that improve the operational effectiveness and efficiency of the organization.
Managerial accounting differs from financial accounting in that financial accounting focuses on providing financial information to investors, shareholders, creditors, and others outside the organization on a quarterly or yearly basis. Managerial accounting, on the other hand, is used internally to improve company efficiency.
KEY LESSONS
Managerial accounting is the type of accounting that provides financial information to a company's managers and decision-makers.
Managerial accounting frequently includes a variety of financial metrics, such as revenue, sales, operating expenses, and cost controls.
Managerial accounting assists businesses in planning To ensure the company's long-term success, forecast and budget at the enterprise level.
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Daniel wants to find out if he can notice the difference in light intensity when he adds some lit candles to a set of lit candles. When he adds 24 candles to his set, he notices the difference in intensity half the time. When he adds 11 candles to his set, he notices the difference a quarter of the time. In this scenario, Daniels absolute threshold for detecting the change in light intensity is at _________ candles. A. 13b. 35c. 11d. 24
24. When he keeps adding 24 incense to his collection, he notices a 50% increase in intensity. He notices the distinction in a third of the cases when he adds 11 lamps to his set.
What exactly do users mean by detecting?To realize something that is partially hidden or unclear, or to explore something, particularly by using a unique method: Some sounds are not detectable by the auditory system. Financial analysts have detected signage that the economy is improving.
What is an illustration of detected?The verb sensor means to reveal or observe something's existence. If you walk into ones house and smell burnt food, you can derive from the evidence that you'll going out to eat. from the evidence that you will be going out to dinner tonight.
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Ottocell Motor Company just paid a dividend of $1. 40. Analysts expect its dividend to grow at a rate of 10 percent next year, 8 percent for the following two years, and then a constant rate of 5 percent thereafter. What is the expected dividend per share at the end of year 5?
The recent dividend payment from Ottocell Motor Company was $1.40. At the conclusion of year 5, the anticipated dividend per share is $1.98.
What does "business" actually mean?A group of people can form a legal entity called a corporation to run and manage a commercial or industrial business. A corporation may very well be set up by a variety of methods for tax and financial obligation concerns depending also on section 4(2 of its jurisdiction.
What does the Company ending mean?The play's ending is left up to the audience's assessment because Robert may have been thinking about it the entire time before he realized he wanted to live alone. The production has no predetermined running length for the musical, and Robert is celebrated his 35th birthday three times by his pals.
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this type of industry consists of a person producing items by hand at home.
A grassroots movement is a modest producing firm run by a person or family, usually from their house rather than from a specially constructed facility.
What kind of industries are instances?Industries are often categorized based on the products and services they offer. For instance, all companies that create and sell pizza on the markets are included in the fast food business. It is crucial to remember that in order to be considered a member of the fast food business, a producer must sell the goods they create on the open market.
What does the term "industry" presume?The term "industry" applies to any business, trade, venture, production, or call of employers as well as any employment, service, occupation, handicraft, or industrial profession of workers.
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a data analyst wants to create documentation for their cleaning process so other analysts on their team can recreate this process. what tool can help them create this shareable report?
Skills in communication, education, technical skills, creativity, experience, problem-solving abilities, mental health, and personal resilience are all examples of human capital.
What is an example of human capital Class 9?
Human capital investment is the investment in things like education, training, and medical care.
What are the most important examples of human capital and physical capital?
Inanimate assets like cash, property, job site equipment, and inventory make up physical capital. In contrast, human capital refers to the capabilities, knowledge, and skills of an organization's staff.
Which four types of capital are there?
Working capital, debt, equity, and trading capital are the four main types of capital.
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if a company prepays rent, insurance, and supplies why would the amount not go straight into expense if the monies were paid at the time of service?
If a company prepays rent, insurance, and supplies, the amount would not go straight into expense because these payments are for future periods and would be considered assets until the period for which they were paid.
They are recorded as prepaid expenses on the balance sheet, and then they are recognized as expenses on the income statement in the period to which they relate.
For example, if a company pays its rent, insurance and supplies for the next six months, the payments would be recorded as prepaid expenses on the balance sheet and then the amounts would be recognized as expenses on the income statement over the next six months. This will ensure that the expenses are matched with the revenues earned in the same period.
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A business that raises money by issuing shares of stock.select the correct word or phrase
Accounts ReceivableCommon StockPartnershipCorporationStockholderAccounts PayableAuditor’s OpinionCreditor
A publicly-traded company. allowing investors to buy and sell ownership in the company.
What is investors ?Investors are individuals or entities that provide capital to businesses, projects, or other investments in exchange for a financial return. Investors may be institutions, such as banks, insurance companies, pension funds, mutual funds, hedge funds, and venture capital firms. They may also be private individuals who invest directly in stocks, bonds, real estate, and other assets.
A publicly-traded company is a business that raises money by issuing shares of stock to the public through an initial public offering (IPO). These shares can then be bought and sold on a stock exchange,
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an economy produces 30 apples at a market price of $0.25 per apple and 50 oranges at a market price of $0.50 per orange in a certain time period. twenty-five apples are sold, but 5 apples spoil and are never bought. forty-five oranges are sold, and 5 oranges are held as inventory. what is the value of gross domestic product (gdp) in this economy?
The consumer price index for all urban consumers CPI U rose 2.9 percent, the biggest increase in 12 months.
Since the period ending 2012, the CPI includes products in general use, while the GDP price index includes all goods and services. The CPI does not include all goods and services. CPI measurements depend on the fixed basket of goods. During this period. Energy prices rose 12.0 percent the biggest 12 month increase since the period. The GDP deflator differs from the CPI because it includes produced goods and services rather than consumed goods and services. Further more, the CPI uses a fixed basket of goods, while the GDP deflator automatically changes the group of goods and services over time as the composition of GDP changes.
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oona wants to conduct research on personnel management, workplace environment, and what type of environment results in high levels of employee productivity and efficiency. oona should conduct research in the area of
Oona ought to investigate the psychology of "industrial-organizational" settings.
Is a career in organizational psychology appealing?As an Industrial and Organizational Psychologist, you can anticipate a fairly lucrative income. You will have a great earning potential. One of the biggest benefits of working as an Industrial and Organizational Psychologist is that you can make more than the average salary.
What does industrial organizational psychology look like in practice?Human resources policy planning is a big part of what an industrial-organizational psychologist does. They might, for instance, investigate the working styles of employees and contribute to the creation of policies that foster teamwork and productivity.
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what makes technical communication challenging? group of answer choices people are complicated. researching is difficult. writing takes a long time. technology is needed to design documents. technical communication is expensive
Writing takes a long time and technical communication is expensive which makes technical communication challenging.
What is technical communication?
Any form of communication that has one or more of the following traits falls under the wide category of technical communication. Talking about complex or specialized subjects, such computer programmes, medical processes, or environmental laws.
What makes technical writing difficult?
Technical publications may be difficult to understand for readers if they were poorly planned and illogically organized. The content is difficult to navigate, and the sections don't easily flow into one another. In order for your viewers to understand your content, it must be logically organized.
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Marigold Corp. Thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1550000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1600000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12
$77500 Workings of overhead should be applied to Job No. B12.
What exactly do you mean by overheads?Overhead costs, also known as "overhead expenses" or "operating expenses," are costs associated with running a business that are not directly related to the creation or production of a product or service. They are the expenses incurred by the company to remain in business, regardless of its level of success.
Estimated overhead costs = $1,550,000
Budgeted machine hours = 20,000
Predetermined overhead rate = Estimated overhead costs / Budgeted machine hours
= $1,550,000 / 20,000 machine hours
= $775 per machine hour
Actual machine hours used for Job No.B12 = 1,000
Overhead applied to Job No. B12
= Predetermined overhead rate x Actual machine hours used for Job No.B12
= $775 per machine hour x 1,000 machine hours
= $77,500
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According to an article in the new york times, the venezuelan government "imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often the very products that are the hardest to find. " source: william neuman, "with venezuelan cupboards bare, some blame price controls," new york times, april 20, 2012. Imposing price controls on goods would make them hard to find because
Imposing price controls on goods would make them hard to find because producers would not want to supply as much as they did before the price controls.
What are typical goods?
Common Products refers to hazardous substances that are often used in the Company Facilities and in proportions required for the regular operation of other facilities of a same kind, such as but not limited to cleaning agents, insecticides, and medications.
What class of goods are services under?
Products are often real, physical objects that your buyers can grasp in their hands.
EXAMPLE: Your firm offers branded giveaways and products for sale to other companies. Services are often unimportant; these are actions you take on behalf of another person. A tangible product is a key item that can be felt, such as a structure, car, appliance, or article of clothing.
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according to the ache's ethical policy statement in creating an ethical environment for employees, the organization should:
According to the ACHE's Ethical Policy Statement in Creating an Ethical Environment for Employees, the organization should: Ensure maximum utilization of an employee's skills and abilities.
Healthcare executives have an obligation to act in ways that will merit the trust, confidence and respect of healthcare professionals and the general public. Therefore, healthcare executives should lead lives that embody an exemplary system of values and ethics.The Ethical Policy Statements present ACHE's position on various ethical issues in healthcare and suggest a standard of behavior for healthcare executives facing these challenges. ACHE's Ethical Policy Statements originate from key issues of concern to members and are drafted at the committee level.
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ibm creates and sells additional stock to the investment banker morgan stanley. morgan stanley then resells the issue to the u.s. public through its mutual funds. this transaction is an example of a(n):
Ibm makes more stock and sells it to investment banker Morgan Stanley. Through its mutual funds, Morgan Stanley then resells the issue to the American public primary market transaction.
A corporate or governmental body offers securities to investors directly on a main market. An IPO, in which a business first issues shares of stock, is a typical illustration of this kind of transaction.
These transactions take place on an exchange, such the Nasdaq or the New York Stock Exchange. Stocks are bought directly from the issuer when they are purchased on the primary market. The issuing corporation has no role in the secondary market.
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Which scenario exemplifies the production function of the value chain?
Multiple Choice
a) Reuben designs and executes an advertising campaign for his firm’s new product.
b) Dorie is training new employees on the use of the company’s new accounting system.
c) Manuela, a customer service rep, is processing a return for an unhappy customer.
d) Sally, a loan officer at Commercial bank, originates a home equity loan for a customer
d) Sally, a loan officer at Commercial bank, originates a home equity loan for a customer.
What is originates ?Originates is a verb that means to come from a particular source or have a particular beginning. It can also mean to give rise to or create something.
The production function of the value chain is the process of creating value for customers through the production and delivery of goods or services. In this scenario, Sally is providing a service to her customer - originating a home equity loan - and this process creates value for the customer.
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Most countries on the planet use a market- based approach to organizing economic activity. false or true •
True, most nations on the earth organize economic activities using a market-based strategy.
Economic activity: What is it?Economic activity is the process of producing, providing, purchasing, or selling goods or services. Any action that involves the production, distribution, or consumption of products or services is referred to as an economic activity. Economic activity occurs at all levels of a society.
Is eating and drinking an economic activity?An economic activity can also be defined as the act of consuming an item or service. In society, these activities take place in a wide range of contexts, intensities, and complexity. The phrase is typically employed in economic theory as a driving force.
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following a large deposit, excess reserves at the second national bank of middle earth have increased by $ 20 , 000 $20,000dollar sign, 20, comma, 000. how much was that large deposit if the reserve requirement in this country is 20 % 20 , percent? choose 1 answer: choose 1 answer: (choice a) a $ 5 , 000 $5,000dollar sign, 5, comma, 000 (choice b) b $ 20 , 000 $20,000dollar sign, 20, comma, 000 (choice c) c $ 25 , 000 $25,000dollar sign, 25, comma, 000 (choice d) d $ 100 , 000 $100,000dollar sign, 100, comma, 000 (choice e) e $ 200 , 000 $200,000dollar sign, 200, comma, 000
The large deposit that caused the increase in excess reserves at the second national bank of middle earth was $25,000. (choice c)
How much was that large deposit if the reserve requirement in this country is 20 % 20 , percent?To calculate the large deposit that caused the increase in excess reserves, we can use the following formula:Large deposit = Excess reserves / (1 - Reserve requirement)Given the information provided in the question:Excess reserves = $20,000Reserve requirement = 20% (or 0.2 as a decimal)We can plug these values into the formula:Large deposit = $20,000 / (1 - 0.2)Large deposit = $20,000 / 0.8Large deposit = $25,000So the large deposit that caused the increase in excess reserves at the second national bank of middle earth was $25,000. (choice c)To summarize:Excess reserves increased by $20,000Reserve requirement is 20%Large deposit = Excess reserves / (1 - Reserve requirement)Large deposit = $25,000
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if you deposit $500 per year in an account for nine years at 6%, how much will you have in the account?
If you deposit $500 per year in an account for nine years at 6%, how much will you have in the account 1 year first value $500 at the End $523.
What Exactly Is Compound Interest?
In finance, compound interest is the technical word for the snowball effect, in which an initial sum increases upon itself and gathers velocity over time. It is a potent weapon that may work in your advantage while saving or deferring debt payments. Compound interest is sometimes known as “interest on interest” because interest earned is reinvested or compounded with your main balance. It is the interest gained on the starting money as well as the interest received on previously accrued returns.
Compound interest can help you save money quicker, but it can also help you lose money faster if you have it on your loans. Interest can be compounded on a daily, monthly, yearly, or continuous basis. The
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in a world without financial institutions where suppliers provide funds directly to users, suppliers of funds would face three types of risks/costs. these are
Without financial institutions, suppliers of cash would have to deal with three different risks and costs if they gave money directly to customers. Cost of monitoring, price risk, and cost of liquidity.
A financial institution is a firm that specializes in managing financial and monetary transactions such as currency exchange, loans, investments, and deposits. In the financial services sector, "financial institutions" refers to a broad range of commercial operations, including banks, trust companies, insurance companies, brokerage houses, and investment dealers.
Commercial banks, investment banks, insurance companies, and brokerage firms are the most typical categories of financial institutions. These organizations provide a wide range of goods and services, including deposits, loans, investments, and currency exchange, to both private individuals and businesses.
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