Answer:
Ending cash balance = $13,000
Explanation:
<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>
With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position
Ending cash balance = Beginning cash balance + cash receipts - cash payment
= 3,000 + 50,000 - 40,000
Ending cash balance = $13,000
The best strategy for this trader, who wants to profit from either direction of the underlying stock, is <em>A. Long Put and C. Short Call.</em>
In securities trading, a call option gives the trader the <em>right to purchase </em>underlying security <em>without any obligation</em>. On the other hand, a put option grants the trader the <em>right to sell</em> the underlying security <em>without any obligation</em>.
Thus, the trader will profit by using options A and C.
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Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.
Explanation:
When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.
The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.
Answer: Demand will fall, Interest rates will fall
Explanation:
The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.
If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.
Answer:
C , I , G , NX
Explanation:
The components of nation's demand for goods & services is reflected in Aggregate Demand . AD is the total value of goods & services all the consumers are planning to buy during a period.
AD denotes consumption components by 4 sectors of an Economy : Households, Firms, Government , Rest of World .
All 4 sectors form components of AD = Consumption Expenditure, Investment, Government Expenditure, Net Exports (Exports - Imports) by the 4 above sectors respectively.