A congested side street in your neighborhood is Option c. not excludable and rival in consumption.
The required details about consumption is mentioned in below paragraph.
Consumption is an pastime wherein institutional gadgets burn up items or offerings; intake may be both intermediate or final. It is using items and offerings for the pride of person or collective human desires or wants.intake, in economics, using items and offerings through households. Consumption is wonderful from intake expenditure, that is the acquisition of products and offerings to be used through households. Consumption differs from intake expenditure typically due to the fact long lasting items, together with automobiles, generate an expenditure specially withinside the duration while they're purchased, however they generate “intake offerings” (for example, an vehicle presents transportation offerings) till they're changed or scrapped.Consumption is a complicated social phenomenon wherein human beings eat items or offerings for motives past their primary use-value. Conspicuous Consumption, Symbolic Consumption, Addictive Consumption, Compulsive Consumption and Sacred Consumption are 5 important classes defining unique intake styles
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Research has shown that if you invest in which of the following activities, you will end up with an attitude of continuous and constant improvement.
a. Create Value for the customer
b. Assure quality at the source
c. Stick to the rules
d. Look out for your own team
e. All of the above
f. Only a and b
Research has shown that if you invest in which of the following activities, you will end up with an attitude of continuous and constant improvement. f. Only a and b
Research is "creative and systematic work undertaken to growth the inventory of expertise". It involves the impartial collection, business enterprise and evaluation of records to increase understanding of a topic or difficulty. A studies assignment may be a diffusion on past paintings within the discipline
Research is a system of systematic inquiry that involves series of information; documentation of critical information; and evaluation and interpretation of that facts/data, according with appropriate methodologies set through unique professional fields and academic disciplines.
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If the market price is $10, how many widgets should this profit-maximizing firm produce?.
16,000 widgets should be produced by this business to maximize profits if the market price is $10.
So answer is 16,000.
Just what is profit?Profit is the amount of money you have after covering business expenses. Gross, operational, and net profits are the three basic categories of profit. The largest is gross profit. It displays the amount of money that was left over after paying for the sold goods and services. Following is operating profit. It demonstrates how much money is left over after running expenses like rent, power, phone bills, and occasionally workers are covered. The last is net profit. It displays your income after all expenses and taxes have been paid. Net profit is yours to keep.
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When considering the interest and influence of stakeholders impacting the success of a project, what are the common attributes of the group of stakeholder that are the basis for an effective coalition of support for the project?.
The common attributes of the group of stakeholder that are the basis for an effective coalition of support for the project are: power, legitimacy, as well as urgency.
What does successful stakeholder involvement entail?Understanding your problems and industry best practices can help projects take shape through stakeholder involvement. It is more probable that your stakeholders will support you if you involve them in your business if you understand them, know how to communicate with them, and do it early. They will believe they have contributed and participated.
Therefore, Three stakeholder characteristics—power, urgency, and proximity—as well as four stakeholder behavior categories—cooperative potential, competitive threat, opposite position, and neutral attitude—are all thought to be significant by practitioners when handling stakeholder claims, according to empirical studies.
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accounts payable are: multiple choice amounts owed to suppliers for products or services purchased on credit. amounts received in advance from customers for future services. estimated liabilities. also referred to as unearned revenues. always payable within 30 days.
Accounts payable are a) amounts owed to suppliers for products or services purchased on credit.
In the field of business, accounts payable can be described as the amount of money that is due to be paid by the owner of a business to the particular suppliers from which products have been bought online.
The amount of accounts payable is to be paid by the company owner to the supplier in a short period of time. Accounts payable is not a type of debt that the supplier gives to the business owner. It is just the pending payment left for products or services as they were purchased through the use of credit.
The question can be written correctly as:
Accounts payable are: multiple choice
a) amounts owed to suppliers for products or services purchased on credit.
b)amounts received in advance from customers for future services.
c)estimated liabilities also referred to as unearned revenues.
d) always payable within 30 days.
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if cheri buys a zero coupon bond at $5000 and the face value amount is stated as $10,000, how much will she receive when the bond matures in 10 years?
She will receive $10000 when the bond matures in 10 years.
Considering the values given in the question,
Price of zero coupon bond = $5000
Face value amount = $10000
When zero coupon bond matures , the bond holder will get an amount equal to the face value of the bond.
So at the time of maturity, she receives amount equal to $10000.
Therefore, In ten years, when the bond matures, she will earn $10000.
An accrual bond, also known as a zero-coupon bond, is a financial instrument that doesn't pay interest but trades at a significant discount, making money when it matures and is redeemed for its full face value.
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the functional structure is considered most efficient when group of answer choices an organization gets too large. when customers need special functions. when the organization is in the mature phase of the life cycle. when organizations have few products.
A functional structure is a company structure that is built around the roles that each team member plays within the company and their knowledge and abilities.
What is meant by functional organization?Vertical hierarchy characterizes a functional organization. The company is split up into various functional sections, each with staff members with specialized job duties. Due to the autonomous vertical management structures that each group possesses, functional departments frequently work in isolation.An illustration of a department in a functional organizational structure might be a department for sales, one for production, one for human resources, one for information technology, one for marketing, and one for law.To place the experts at the top of the organization, functional organization has been segmented. This organization can be characterized as a structure in which functional departments are established to address business issues at various levels.To Learn more About functional structure refer to:
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maximizing the level of output for a given total cost of production group of answer choices is equivalent to minimizing cost for a given level of output. is equivalent to producing the profit maximizing output level. will maximize total revenue. necessitates using only relatively low-priced inputs.
Maximizing the level of output for a given total cost of production is equivalent to minimizing cost for a given level of output. The Option A is correct.
What is a Cost maximization for a Given Output?In Economics, the theory of production stipulates that when the profit maximization firm is in equilibrium when, given the cost- price function, it maximizes its profits on the basis of the least cost combination of factors.
Because of this, the firm will choose that combination which minimizes its cost of production for a given output, therefore, his will be the optimal combination for it.
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greene corporation does not recognize unrealized holding gains and losses for its bond investments. if the company is properly applying u.s. gaap, its investment must be classified as
For its bond investments, Greene Corporation does not account for unrealized holding losses and gains. If the business is following U.S. GAAP correctly, the investment must be categorised as held-to-maturity.
What is investment?
A purchase made with the intention of generating income and capital growth is known as an investment. Appreciation is the term for an asset's value rising over time. When a person invests in a good, they do not intend to use it as a source of immediate consumption, but rather as a tool for future wealth creation. An investment always involves the expenditure of some resource presently, effort, money, or a resource the anticipation of a future return greater than the initial investment. For instance, an investor might buy a financial asset right away with the hope that it will generate income later on or that it can be sold for a profit at a higher price.
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Monopolistic markets and their high prices and profits violate capitalist justice because the seller charges more than the goods are worth. Thus, the prices the buyer must pay are unjust. True or False
"Monopolistic markets and their high prices and profits violate capitalist justice because the seller charges more than the goods are worth. Thus, the prices the buyer must pay are unjust." This statement is True.
Monopolistic competition is a type of competition in which many producers compete with each other but sell different products and therefore are not perfect substitutes.
To have or gain complete control over anything, especially in the business sphere. To prevent others from having a share, she did not feel that the fine was a sufficient deterrent against monopoly practices by large producers. The company has been accused of monopoly conduct. see. monopoly. Monopolistic competition exists between monopoly and perfect competition and involves companies combining the elements of each and offering similar but not identical product offerings.Learn more about Monopolistic here: https://brainly.com/question/25717627
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true or false, creating a risk assessment worksheet is associated with time critical risk management (tcrm
False, Creating a risk assessment worksheet is not associated with time-critical risk management (TCRM).
Time-critical risk management is one of three levels of ORM (Operational Risk management) a technique of using all the available resources effectively with the limited time and resources by the management crew in order to complete the mission or task safely using risk management concepts and learning. This management works when no or little time is there to make a plan for managing risks and also for creating a risk assessment worksheet and the crew is trained to assess and control hazardous and risky tasks within the time limits.
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On average, how much time and money is spent per person resolving identity theft?.
On an average, 60 hours and $1800 money is spent per person resolving the identity theft.
The act of obtaining another person's personal or financial information with the intent to employ it to perpetrate fraud, including such taking out unlawful transactions or purchases, is known as identity theft. Identity theft can be performed in a variety of ways, and the victims often face repercussions to their reputation, wealth, and credit. Identity theft is the deliberate use of another person's identity to acquire financial benefits, borrow money, as well as other benefits. It may also result in losses or downsides for other people. In particular, when they are wrongfully blamed for the perpetrator's conduct, the victim of identity theft may experience adverse consequences.
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the first thing you need to do is perform readiness assessments, which can help you understand the level of readiness within your organization. True or False
To know and answer if the first thing you need to do is perform readiness assessments, which can help you understand if the level of readiness within your organization is true or false we need to learn a bit about Why Organizational Readiness Assessments are Important?
Are important because allows you to know if your team or company has the knowledge or resources to afford goals and challenges.
Very similar to an audit, the readiness assessment allows you to know the situation and environment before big changes or new projects.
In a Readiness Assessment the focus is aimed at:
Goals and objectivesExpectations and concernsIf the leader supports the projectResiliencyHow to minimize potential failureGovernance and decision makingOther critical needsSmart leadership in an organization should use all this data to take management measures to sharpen teams and goals.
So we can say that is TRUE.
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productivity is a. the ratio of how much output is produced per unit of input per unit of time. b. the quantity of output produced within a country within a year. c. the number of hours it takes to produce a certain level of output. d. the quantity of workers it takes to produce a certain level of output.
Productivity is (A) the ratio of how much output is produced per unit of input per unit of time.
What is productivity?Productivity is a measure of how effectively commodities or services are produced. Productivity is sometimes represented as a ratio of the whole output to a single input or the total input used in a production process, or output per unit of input, usually over a predetermined time period.By comparing the number of goods and services produced (output) with the number of inputs required to generate those goods and services, productivity is a measure of economic performance.The quantity or cost of the final items each employee can create in a certain amount of time may be used as a productivity indicator for a manufacturing organization.Therefore, productivity is (A) the ratio of how much output is produced per unit of input per unit of time.
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hakim owns a beauty supply retail store that specializes in natural hair care products. which of the following is true regarding the role of retail operations in the united states economy?
Is true regarding the role of retail operations in the united states economy A majority of retail operations are small businesses like Hakims.
A retail store is the activities, systems, and processes that enable the efficient operation of an online or physical store. Retail operations include: Supply chain management. cash transaction. Store layout (both online and in-store)
The importance of a retail store typically includes supply chain, cash operations, human resources management, inventory, store layout, promotions, pricing, and data management within the retail store. Includes sides. There are many things to balance, but getting it right can help retailers differentiate themselves.
So it's more important than ever for retailers to ensure that their stores are performing at their best. Retail business is a term used to describe all the activities that make a business work well.
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shirley received $500 monthly sick pay under a welfare fund and $6,500 monthly under a disability insurance policy offered by her employer on which she paid the premiums. how much, if any, of the $7,000 monthly benefits would be taxable to her?
response (d) will be accurate.
The entire taxable amount will be $7000.
The IRS says "Any disability-related benefit received will only be fully taxed if Employee pays the entire premium for such a policy using pre-tax funds."
Here, the premium amount was paid by the employee herself and is presumed to have been paid with pre-tax money, making it fully taxable at $6500.
For example, a $500 sick pay from the welfare fund is considered earned income and is therefore completely taxable.
the entire amount that is taxable = 500+6500 = $7000.
Therefore, the taxable amount is $7,000
Therefore, the correct response is "D."
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COMPLETE QUESTION:
Shirley received $500 monthly sick pay under a welfare fund and $6,500 monthly under a disability insurance policy offered by her employer on which she paid the premiums. How much, if any, of the $7,000 monthly benefits would be taxable to her?
A) $0.00
B) $500.00
C) $6,500.00
D) $7,000.00
Luc, a vehicle dealer, offers to sell mel a truck and trailer, which luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, mel confronts luc, who says he was not trying to fool mel—he was only trying to make a sale. This is.
Mel confronts Luc after knowing the truth about the capability of the truck as not a asset, and he claims he wasn't trying to trick her—just get a sale. "Fraudulent misrepresentation" is what this is.
What is meant by fraudulent misrepresentation?Fraudulent misrepresentation is defined under business law as a statement that the defendant made negligently or knowing it to be untrue in order to persuade the other party to engage into a contract.
The other corporation may be sued for fraudulent misrepresentation if it later learns that a statement used to win their cooperation was untrue.The law therefore assumes that the statement was made in an effort to persuade the other party to enter into the contract.Giving someone the impression that an item is "just like new" when it is actually many years old and used-weary is a classic example of deception in contract terms.For the given case-
Luc, a vehicle dealer, proposes to sale Mel a trailer and a truck that, according to Luc, can tow a particular amount of weight.
He has no knowledge of the truck's capabilities, but they are not what he claims. Mel purchases the pickup.
Mel confronts him after knowing the truth, and he claims he wasn't trying to trick her—just get a sale. This showed the Fraudulent misrepresentation.
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the best way to verify the amounts of dividend revenue received during the year is
The best way to verify the amounts of dividend revenue received during the year is Verification by reference to dividend record books.
Revenue is the money generated from ordinary business operations, calculated because the common sales fee instances the variety of units bought. it's miles the pinnacle line (or gross income) parent from which costs are subtracted to decide internet profits. sales is likewise referred to as income on the profits declaration.
In accounting, revenue is the whole amount of profits generated by way of the sale of goods and offerings associated with the primary operations of the commercial enterprise. business sales can also be known as sales or as turnover. a few groups receive sales from interest, royalties, or different costs.
Revenue is used as an illustration of profits great. There are several financial ratios attached to it: The maximum crucial being gross margin and profit margin; additionally, companies use revenue to decide bad debt rate the use of the income announcement technique.
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question content area the accumulated depletion of a natural resource is reported on the a.balance sheet as a deduction from the cost of the resource b.income statement as a deduction from revenues c.balance sheet as depreciation from the cost of the resource d.income statement as an increase in revenue
The accumulated depletion of a natural resource is reported on the (A) balance sheet as a deduction from the cost of the resource.
What is a balance sheet?An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement. One of the three primary financial statements used to assess a company is the balance sheet. It offers a snapshot of the assets and liabilities of a corporation as of the publication date.A natural resource's cumulative depletion is recorded on the balance sheets as a reduction from the resource's cost. A balance sheet provides you with a quick overview of your company's financial situation at any given time. A balance sheet, along with an income statement and a cash flow statement, can aid business leaders in assessing the financial health of their organization.Therefore, the accumulated depletion of a natural resource is reported on the (A) balance sheet as a deduction from the cost of the resource.
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Data that were initially generated for a purpose other than solving the problem at hand are termed
a. exploratory data
b. survey data
c. descriptive data
d. qualitative data
e. secondary data
Data that were initially generated for a purpose other than solving the problem at hand are termed Exploratory data
Survey data and exploratory data are both used to evaluate and interpret data. when employing mean, median, and mode to describe the data using descriptive data. Additionally, qualitative data are employed to improve problem-solving. These are independent variables for our inquiry. Exploratory data analysis is the crucial process of conducting preliminary analyses on data in order to find patterns, identify anomalies, test hypotheses, and double-check assumptions with the aid of summary statistics and graphical representations. There are sandals, hiking boots, formal shoes, etc. By using EDA, you leave yourself open to the possibility that many different people may choose to purchase many various styles of shoes.
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the objective of corporate analysis is to identify the organization s resources, any limitations or constraints, its goals, and how it values shape the way it does business.
This statement is true.
Each company's ability to successfully position itself in the fiercely competitive market must include a corporate analysis as a critical component.
A realistic examination of the company's strengths, flaws, opportunities, and potential hazards serves as the foundation for assessing its future.
The corporate analysis makes it possible to evaluate every aspect of the business, giving a detailed picture of the situation. We thoroughly identify and analyse the opportunities, threats, vulnerabilities, and strengths.
By ensuring that all necessary measures are done when establishing strategic plans for marketing, controlling, production, purchasing and procurement, human resources planning, and management, the corporate analysis fulfills its function.
Any deviations from the original plan should be able to be discovered and rectified thanks to the targets and the ongoing oversight of all corporate activities.
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What project scheduling term is used to describe the completion of significant portions of the project or a transition from one phase to another?.
The transition from one phase of a project's lifecycle to another typically involves and is defined by some form of technology transfer or handoff. This is also known as a kill point.
Project Scheduling:A project schedule is similar to a timetable in that it sequences the activities and milestones that must be completed in a specific amount of time. It is a framework for allocating, performing, and completing activities within a specified time range while communicating the available resources. The goal of project scheduling is to provide vital information to the team in a thorough manner.
Effective project scheduling is critical to project success because it increases client satisfaction while decreasing expenses. It aids in the early detection of issues such as resource shortages, reducing risks and budget overruns.
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Are you planning to buy something next Black Friday?
Black Friday is a special day after Thanksgiving and before Christmas, which is celebrated by shopping and big discounts. So I plan to buy books, school supplies, and clothes when black Friday comes.
Black Friday is only valid for 24 hours, or on celebration days only. On this day, shops usually open earlier, starting at midnight. Since 2005, this day has become the busiest day because almost all people in the United States shop at various centers around the world. Black Friday is celebrated every Friday in the 4th week of November, one day after Thanksgiving. In 2022, Black Friday falls on November 25, 2022
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what is the tool used to reduce the number of bidders on a public project and to increase the quality of the contractor pool?
The tool used to limit the number of contractors bidding on a public project is the requirement for a prequalification statement.
What is a prequalification statement?In order to respond to a request for bids for a design-build contract, a bidder must first be prequalified by the contracting unit.Prequalification is the process of assessing potential bidders to see if they possess the knowledge, integrity, and financial resources required to faithfully carry out a construction or repair contract.A Constructor's past projects, experience, ongoing projects, organizational structure, bonding capacity, safety program, and people are all covered in the qualifications.Potential Constructors have the chance to build a rapport with the Owner through this contract form. The way of acquiring building works that is still most frequently utilized is traditional procurement.It consists of a three-way contract between a client, consultants, and contractor.Traditionally, design and construction are separated during the procurement process.
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draiman guitars is offering 190,000 shares of stock in an ipo by a general cash offer. the offer price is $28 per share and the underwriter's spread is 8.5 percent. the administrative costs are $430,000. what are the net proceeds to the company?
The net proceeds to the company are $4,437,800.
In a transaction involving the sale of an asset, the net proceeds are the sums received by the seller after deducting all charges and expenses from the gross proceeds (goods, property, or securities).
We have given in the question,
Number of shares of stock = 190,000
Offer price = $28
Administrative cost = $430,000
Underwriter spread percent = 8.5%
The computation of net proceeds to the company is shown below:-
Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost
= 190,000 × $28 × (1- 0.085) - $430,000
= 190,000 × $28 × 0.915 - $430,000
= $4,867,800 - $430,000
= $4,437,800
Therefore, the net proceeds to the company are $4,437,800.
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from the perspective of a bank, the objectives of and are at odds with one another. a. liquidity; profitability b. profitability; cost minimization c. accepting deposits; providing loans d. asset liquidity; holding of bank reserves
From the perspective of a bank, the objectives of (A) liquidity and profitability are at odds with one another.
What are banks?A bank is a type of financial entity that lends money while both taking deposits from the general public and generating demand deposits. The bank may engage in lending activities directly or indirectly through the capital markets.Because banks are crucial to the financial stability and economic health of a nation, they are subject to intense regulation in most jurisdictions. The majority of nations have institutionalized the fractional reserve banking system, in which banks keep liquid assets that are only partially equivalent to their current liabilities. The goals of liquidity and profitability are incompatible from a bank's point of view.Therefore, from the perspective of a bank, the objectives of (A) liquidity and profitability are at odds with one another.
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a small company struggling to reach profitability just announced a major new government contract that will validate its technology and generate revenue for the next several years. the announcement of the contract will group of answer choices cause the stock price to increase because rcs (the required return) is likely to decrease and g (the growth rate in future dividends) is likely to increase. cause the stock price to decrease because the government usually pays below market price for the goods and services it purchases. cause the stock price to increase because rcs (the required return) is likely to increase. have no effect on the stock price because the company has not yet paid any dividends.
The announcement of the contract will (A) cause the stock price to increase because RCS (the required return) is likely to decrease and g (the growth rate in future dividends) is likely to increase.
What is the stock price?A share price is the cost of one equity share among many sellable shares of a corporation. The stock price, put simply, is the highest price someone is willing to pay for the stock or the lowest price at which it can be purchased.A tiny business that is having trouble turning a profit just revealed a significant new government contract that will confirm its technology and produce income for the foreseeable future. Because RCS (the needed return) is likely to decline and g (the growth rate of future dividends) is likely to rise, the contract announcement will result in an increase in the stock price.Therefore, the announcement of the contract will (A) cause the stock price to increase because RCS (the required return) is likely to decrease and g (the growth rate in future dividends) is likely to increase.
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The correct form of a question:
A small company struggling to reach profitability just announced a major new government contract that will validate its technology and generate revenue for the next several years. The announcement of the contract will
A) cause the stock price to increase because RCS (the required return) is likely to decrease and g (the growth rate in future dividends) is likely to increase.
B) cause the stock price to decrease because the government usually pays below market price for the goods and services it purchases.
C) cause the stock price to increase because rcs (the required return) is likely to increase.
D) have no effect on the stock price because the company has not yet paid any dividends.
David left $300 in an account that earns 5% interest on
the money he originally deposited. When he collected his
interest, he had earned $60 in interest. How long did he
leave the money in the account?
The amount of time that David did not touch the funds in the account is equal to four years.
Can you explain the concept of earned interest?A person who invests a certain sum of money for a predetermined length of time is entitled to receive a predetermined amount of money on a regular basis as interest on that investment.
The initial investment is equal to $300 (p).
The time, or T, equals X.
The rate of interest yield, denoted by (R), is equal to 5%.
$ 60 is equivalent to simple interest (SI).
Applying the calculation method;
SI = P×T×R/100
Transform T into the focus of the formula;
T = SI×100/P*R
T= 60×100/300×5
T= 6000/1500
T equals four years.
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for the multiple deposit expansion process described in this table, what is the maximum amount of loans that the second national bank can make if it observes the same reserve ratio as first national bank?
The second national bank's maximum loan amount is $338,560 if it adheres to the same reserve ratio as the first national bank.
Internationally, "national bank" and "central bank" are interchangeable terms for banks that are under the control of a nation's national government. Within national economies, central banks determine monetary policies.
First National Bank:
Deposit = $400,000
Loan = $368,000
Reserve = Deposit - Loan
Reserve = 400000 - 368000 = $32,000
Therefore, Reserve is 8% of Deposit = 8% of 400000 = $32,000
The First National Bank's loan will turn into the Second National Bank's deposit.
Second National Bank:
Deposit = $368,000
Reserve Requirement = 8% of &368,000 = $27,040
Loan Eligibility of Second Bank = 368000 - 27040 = $338,560
If the second national bank adheres to the same reserve ratio as the first national bank, the total amount of loans it can make is $338,560.
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COMPLETE QUESTION:
For this table, assume that all banks observe the same required reserve ratio requirement. Also, assume that the banks are listed in sequential order (thus the loans from the First National Bank become the deposits for the Second National Bank, and the loans from the Second National Bank become the deposits for the Third National Bank, and so on.) Also, the bank's balance sheets must always be balanced.
Table: Multiple Deposit Expansion
First National Bank
ASSETS LIABILITIES
Required reserves Deposits $400,000
Loans $368,000
TOTAL TOTAL
Second National Bank
ASSETS LIABILITIES
Required reserves Deposits
Loans
TOTAL TOTAL
Third National Bank
ASSETS LIABILITIES
Required reserves Deposits
Loans
TOTAL TOTAL
Reference: Ref 15-3 (34-3)
(Table: Multiple Deposit Expansion) Refer to the table. For the multiple deposit expansion process described in this table, what is the maximum amount of loans that the Second National Bank can make if it holds only the required reserves?
Regarding the tax treatment of payments to securities holders, it is true that ________.
Regarding the tax treatment of payments to securities holders, it is true that common stock dividends and preferred stock dividends are not tax-deductible; interest.
What do you mean by tax deductible interest?
Tax deductible interest can be defined as a borrowing expense that a taxpayer can claim on a state tax return in order to reduce taxable income. It lowers your taxable income and thus reduces your tax liability. It can be calculated by Mortgage Interest Deduction Calculator. It can be even applied on interest
home loans student loansinvestment propertyHence, Regarding the tax treatment of payments to securities holders, it is true that common stock dividends and preferred stock dividends are not tax-deductible; interest.
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select the fundamental ideas that make the insurance industry possible. protection from loss will not encourage insured parties to take unnecessary risks. risk is something difficult to assess, but some agents become experts on it. diversification can lower the risk of a total loss. some wealthy individuals are risk-loving. it is possible to transfer risk from one party to another in a mutually beneficial arrangement. insurance companies, unlike people, are completely risk-neutral. lloyd's of london connected which two parties? the more risk-averse with the less risk-averse shipowners with ship crews merchants with shipowners merchants with other merchants merchants with investors
The underlying concepts that enable the insurance sector are:
Protection from loss will not encourage insured parties to take unnecessary risks. Diversification can lower the risk of a total loss.What are defined as the fundamental ideas of insurance industry?Companies that provide risk management through insurance contracts make up the insurance industry.
The fundamental idea behind insurance seems to be that one party—the insurer—will make a financial commitment to cover a future catastrophe that is uncertain. In the meantime, another party—the insured or policyholder—pays the insurer a lower premium in compensation for that security against that hazy future event.The sector's main offering is insurance plans. Annuities for retirees and a variety of corporate pension schemes have, however, been introduced in recent decades. As a result, when offering these kinds of products, insurance companies are in direct rivalry with these other financial asset suppliers.Thus, the correct options are-
Protection from loss will not encourage insured parties to take unnecessary risks. Diversification can lower the risk of a total loss.To know more about the insurance, here
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