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2 years ago

Which shock can the fed deal with most effectively?

Business

1 answer:

Sedaia [141]2 years ago

6 0

A major oil shock can the fed deal with most effectively.

It is accompanied by an oil crisis, a sudden rise in oil prices, and often a decline in supply. Since oil is a major source of energy for industrialized countries, the oil crisis can threaten the economic and political stability of the global economy as a whole.

In the aftermath of World War II, there were two major oil crises. Oil exports to the United States, Japan, and Western Europe, which consume more than half of the world's energy, are also banned.

The OPEC decision was in retaliation for Western support for Israel against Egypt and Syria during the Yom Kippur War (1973), and the US dollar (the currency used to sell oil) that caused the dollar to undermine OPEC's export revenues. It was done in response to the sustained decline in the.

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The affirmative action process demands all of the following EXCEPT ________.

sergiy2304 [10]

Answer: D. hiring of people in underrepresented classes, regardless of qualifications.

Explanation: Employment using quota as a criteria and hiring people without regards to qualification just because they are from under represented class, is not an affirmative action and will lead to mediocrity.

Hiring should be based on analysis of demographics of the current company workforce, survey of the relevant labor market and comparison of the current company workforce and workforce available in the labor market.

7 0

3 years ago

Read 2 more answers

Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $

Flauer [41]

Answer: The internal rate of return for project A is $26,074.38

Explanation:

Using the formula

R1/(1+K)^1 R2/(1+K)^2+ - - - Rn/(1+K)^n -

C =0

Where C = capital outlay, K=Rate of interest, R=Net cash flow

Given that K=10%, (10/100)=0.1 R1=$65,000, R2=$75,000 C =$95,000

Project A

65,000/(1+0.1)^1 + 75,000/(1+0.1)^2 - 95,000

65,000/(1.1)^1 +75,000/(1.1)^2 - 95,000

59090.91 + 61983.47 - 95,000

121074.38 - 95000

= $26,074.38

Project B

R1=$64,000, R2=$67,000,R3=$56,000, R4=$45,000 C =$120,000

64,000/(1+0.1)^1+ 67,000/(1+0.1)^2+ 56,000/(1+0.1)^3 + 45,000/(1+0.1)^4 - 120,000

64,000/(1.1)^1 + 67,000/(1.1)^2 + 56,000/(1.1)^3 + 45,000/(1.1)^4 - 120,000

58181.82 + 55371.90 + 42073.63 + 30735.61 - 120,000

= 186362.96 - 120,000

= $66,362.96

4 0

3 years ago

on april 1, 2021, a company loans one of its suppliers $58,000 and accepts a 29-month, 14% note receivable. calculate the amount

castortr0y [4]

The amount of interest revenue the company will recognizes: For 2021 it will be $4680, for 2022 it will be $6240, and for the 2023 it will be $4680.

What is interest revenue?
The income that an organisation receives from every investments it makes or on debt it owns is known as interest revenue. A business must record interest revenue underneath the accrual basis of accounting even if it has not yet received payment in cash for the interest as long as it has earned this same interest; this is done through an accrual journal entry. Interest revenue is only recorded under the cash basis of accounting when the entity receives a cash payment for interest.

For instance, if a business uses the accrual method of accounting, it might spend $10,000 on a certificate of deposit that yields 6% interest and generates $600 in interest income after a year.

The amount of interest revenue the company will recognizes :
2021 => $52000 × 12% × 9/12 = $4680
2022 => $52000 × 12% × 12 = $6240
2023 => $52000 × 12% × 9 /12 = $4680

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6 0

2 years ago

Josie owns a shop in her hometown that offers only a limited number of product categories, but she does carry a large selection

anzhelika [568]

Question Options:

A. Department store

B. Discount store

C. Specialty store

D. Off-price retail store

E. Online retail store

Answer: Josie owns a SPECIALTY STORE.

Explanation: A specialty store can be defined as a retail business that is involved in the sale of only a particular type of goods. Examples include; Furniture stores, florists, sporting goods stores, and bookstores.

8 0

3 years ago

Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is

damaskus [11]

Answer:

Explanation:

Coupon rate = 2%, Par value = $1000

Treasury bond pays coupon semi annually

Coupon payment = (Coupon rate * par value) / 2 = (2% x 1000) / 2 = 20 / 2 = $10

Cash flow in six months = Coupon payment = $10

Cash flow in 1 year = Coupon + par value = 10 + 1000 = 1010

Discount rate for cash flow in 6 months = six-month Treasury spot rate i= 1.6% APR

Semi annual discount rate for cash flow in 6 months = 1.6% / 2 = 0.8%

Discount rate for cash flow in 1 year = 1 year Treasury spot rate i= 2% APR

Semi annual discount rate for cash flow in 1 year = 2% / 2 = 1%

Price of Treasury bond = present value of cash flow in six months discounted at semi annual discount rate + Present value of cash flow in 1 year discounted at semi annual discount rate

Price of Treasury bond = 10 / (1+0.80%) + 1010 / (1+1%)^2 = 10/1.0080 + 1010 / (1.01)^2 = 9.9206 + 990.0990 = 1000.02

4 0

3 years ago