40 points easy question

If the Fed increases the money supply and as a result, households and firms buy more short-term financial assets, the prices of

Ede4ka [16]

Answer:

rise, fall

Explanation:

Money supply refers to the total value of money in the form of currency and other liquid instruments available in an economy.

It includes cash, coins, and other near money substitutes.

Money supply is measured as it influences various activities taking place all around us in the economy.

A larger money supply leads to fall in interest rates. As a result, the prices of those short-term financial assets will rises. Conversely, smaller money supplies leads to rise in interest rates which in turn leads to fall in prices of the short-term financial assets.

3 0

3 years ago

Olivia is willing to pay $185 a month for four years for a car payment. if the interest rate is 4.9 percent, compounded monthly,

Grace [21]

Let x = the price of the car that Olivia can afford.

Down payment = $2,500
Remaining amount to be financed is P = x - 2500.

Total payments should equal the monthly payments.
The total payment over 4 years (48 months) is
A = $185*48 = $8,880

The rate is r = 4.9% = 0.049.
The compounding interval is n = 12.
The time is t = 4 years.
The amount financed is P = $(x - 2500).
Therefore
(x - 2500)(1 + 0.049/12)⁴⁸ = 8880
1.216(x - 2500) = 8880
x - 2500 = 7302.63
x = 9802.63
Olivia can afford a car priced at $9,802.63.

Answer: $9,802.63

4 0

3 years ago

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound

Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

$15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\$

we clear for n as much as we can and solve

$(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}$

$(1+0.004)^{-n}= 0.20$

now we use logarithmic properties to solve for n:

$-n= \frac{log0.2}{log(1+0.004)$

-403.16

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0

3 years ago

The inventory data for an item for November are:

Katen [24]

Answer:

USING LIFO METHOD

Nov 1 Opening inventory 20 [email protected]$19 = 380

Nov 4 Sales 10 [email protected]$19 = (190)

Nov 10 Purchases 30 [email protected]$20 = 600

Nov 17 Sales 20 [email protected]$20 = (400)

Nov 30 Purchases 10 [email protected]$21 = 210

Cost of merchandise sold 600

The correct answer is B

Explanation:

In LIFO method of inventory valuation, most recent stocks are issued first. For instance, sales of 10 units in November 4 will be issued from the November 1 opening inventory and valued at the price of opening inventory.November 17 sales will be issued from November 10 purchases and valued at the price of November 10 purchases.

8 0

3 years ago

Nora contracts to work for ABC Investments during June for $2,500. On May 31, ABC cancels the contract. Nora refuses to accept a

kap26 [50]

Answer:

c. $500

Explanation:

A contract is an agreement by two or more parties to perform a.certain activity within a given time.

When contract are breached, the beneficiary has the right to gain back the amount promised.

If the beneficiary can get another option, the other party is obligated to pay the balance.

On this instance Nora had the chance to get a new job at $2,000 salary the balance is $2,500 - $2,000= $500. Since she rejected the job she is responsible for that loss.

However ABC is still liable to pay the balance of $500

6 0

3 years ago