Answer:
d. a $10,000 decrease.
Explanation:
The computation of the impact on the income is given below:
In case of making the product
= Direct material + direct labor + variable manufacturing overhead + rented
= $100,000 + $160,000 + $60,000 + $10,000
= $330,000
And, in case of buying the product
= 20,000 × $17
= $340,000
So there is a decrease of $10,000
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
Cheers
Answer:
Question 1)
Decrease in money supply = Decrease in checking account / Required reserves ratio
Decrease in money supply = $25,000 / 0.05
Decrease in money supply = $500,000
NOTE: As per Answering Policy, first question is answered.
Explanation:
Question 1)
Decrease in money supply = Decrease in checking account / Required reserves ratio
Decrease in money supply = $25,000 / 0.05
Decrease in money supply = $500,000
NOTE: As per Answering Policy, first question is answered.
