Answer:
The law of one price establishes that the product or service price will remain the same for all the entire world.
Explanation:
The law of one price establishes that the product or service price will remain the same for all the entire world. It is necessary to take into account for this law that the price of the currency needs to be also the same and that the price of the product or service would not be affected by other factors such as additional buyers or sellers in the market.
On the other hand the purchasing power parity refers to the idea of an equilibrium of currencies in exchange rates, it means that the power for purchasing will be represented in the same way in the different countries, and it is important to mention that this theory is base in the law of one price.
The the long run equilibrium is an idea that in theory represents all the equilibrium of prices, quantities, and markets in general; on the other hand, for the short run equilibrium there are some limitations in which the market cannot be explained as properly and fully balanced.
By the term quarter, we mean to say that a year is to be divided in four equal parts. Each year has 12 months. Therefore, each quarter is only composed of 3 months. The rate of tripling the money in 36 months can also be expressed in its equivalent in 3 months.
3/36 = x /3
The value of 3 is equal to 9/36 or 1/4. Therefore, the money will grow by 0.25% every quarter.
Answer:
C.
Explanation:
Wholesaling consist of the sale and all activities in selling goods or services to those who buy for resale or business use.
Characteristics of Wholesaling:
-Wholesalers generally buy merchandise direct from the producers in large quantity mainly in cash.
-They are trading concern having an army of agents and stocks the large quantity of goods, supply or sell goods to the directly or through their agents in small quantities.
-Wholesalers are financially good health. They purchased goods in cash from the manufacturer and sell to the retailers on credit.
-Wholesalers profit margins is very small so that they can maximizes their sales volume to earn maximum profit.
-They deals in limited product line or products.
-They maintain warehouse and godown at different places in the country to facilitate the trade at minimum transportation charges.
They sometimes make the grading of goods under their own name or brand name.
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
