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2 years ago

____________ risk refers to the danger of changes in buying power during times of rising or falling prices.

1 answer:

3 0

The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.

Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.

Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.

Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.

Learn more about risk, here:

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The people who come into our stores are friendly and value this community. You have helped develop this positive attitude throug

masya89 [10]

Answer:

The answer is False.

Explanation:

Refusing routine requests is a message strategy used by businesses to respond to issues that they do not plan to resolve.

Sometimes, this messages are automated such that when such routine request are sent in by a customer, the system responds back with an already encoded message that does not promise to reply the query.

This response is usually courteous and laced with positive language in order to help assuage the customers grief.

The case is different here because there is a promise to respond when Becky Chen added "I will contact you next week regarding the date and time of our next grand opening ceremony".

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3 years ago

Zach wants to take his family on a cruise in 4 years and he estimates the cost of the cruise will be $16,500. How much money sho

Law Incorporation [45]

Answer:

$118.83 per month that Zach must save.

Explanation:

This is a future value annuity as we know the cruise will cost $16500 in 4 years time as estimated by Zach for the cruise.

Fv is the future value for the annuity which is $16500

we also have i the interest rate which is 3.99% monthly

n is the number of periods in which the monthly amount is saved 4 x 12 =48

now we will substitute to the following formula and solve for C the monthly payments that Zach saves for the cruise:

Fv =C [((1+i)^n -1)/ i] now we substitute

$16500 = C[((1+3.99%)^48 -1)/3.99%)] then solve for C

$16500/[(1+3.99%)^48 -1)/3.99%] = C

C = $118.83 that Zach must save per month for 4 years to afford the cruise.

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3 years ago

On September 1, 2021, American Metals Distribution (AMD) has an inventory of 10,000 pounds of copper that it plans to sell on th

Anon25 [30]

Answer and Explanation:

a. The Journal entry is shown below:-

1. Hedge charges Dr, $150

To Cash Account $150

(Being bank charges is recorded)

2. Hedge Instrument - Financial Asset Dr, $600

To Profit and Loss A/c $600

(Being financial assets is recorded)

3. Profit and Loss A/c Dr, $600

To Inventory Account - Copper $600

(Being profit and loss account is recorded)

4. Bank A/c Dr, $22,400

To Sales $22,400

(Being bank account is recorded)

2. The computation of the gross margin and locked with the put option and actual reported gross margin is shown below:-

Particulars Rate Pounds Amount Gross Margin Gross Margin

Cost Price $2.15 10,000 $21,500

Strike Price $2.3 10,000 $23,000 $1,500 6.98%

Cost after hedge

loss of $0.6 2.09 10,000 $20,900

Selling Rate $2.24 10,000 $22,400 $1,500 7.18%

Gross margin locked with the put option: 6.98%

Actual reported gross margin: 7.18%

The two amounts are different, since the carrying value of the inventory has changed and the same has been reduced. As a result the total gross margin of 1,500 yielded another percentage as the base value (inventory carrying value) was adjusted.

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3 years ago

Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a

irga5000 [103]

Answer: Option (d) is correct.

Explanation:

Correct Option: Marginal revenue equals marginal cost.

Pure monopoly is a market situation in which there is a single firm who are producing the goods and these goods are the close substitute. There is no other firm in the market. So, the monopoly firm is the price setter.

The output level that is produced by the profit maximizing monopoly firm is at a point where marginal revenue is equal to the marginal cost. It is the same profit maximizing condition that a competitive firm also utilize to find their equilibrium level of output.

3 0

3 years ago

Which of the following would most likely suffer the least from the costs of inflation?

Arturiano [62]

Answer:

B. Persons on fixed incomes.

Explanation:

Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.

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3 years ago