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1 year ago

Is there a relationship between a financial asset and its interest rate? the interest rate on a financial asset _______

1 answer:

4 0

The cost of a financial asset and its interest rate are inversely correlated. An investment's interest rate decreases as its value increases. Similar to this, an asset's price increases when its interest rate decreases.

Thus, there is an inverse relationship between financial assets and their interest rate.

<h3>What Is a Financial Asset? </h3>

A financial asset is a liquid asset with value derived from a legal claim to ownership or a contractual right. Financial assets include, among other things, cash, investments in stocks, bonds, mutual funds, and bank deposits.

Assets that facilitate the movement of money. They move money from those who have extra money to those who have not, whether they are people, businesses, or even the government.

A promise or claim on future money is what financial assets are. A financial asset or liability is first valued at fair market value. The type of financial instrument will determine how the subsequent measurement is done. The amortized cost and fair value are both used to measure various categories.

For more information about Financial Asset refer to the link:brainly.com/question/15071910

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Lowe's is the second-largest home improvement retailer in the world, with 2,002 stores. During its fiscal year ended in February

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The financial statement effects template records Lowe's purchases for the fiscal year ended February 28, 2019 as follows:

Transaction Assets = Liabilities + Equity

Purchases $0 + $49,569 = $49,569 + $0

Inventory Accounts Payable

The accounts equally affected by the purchases on account are the Inventory and the Accounts Payable.

Data Analysis:

Merchandise Inventory $49,569 Accounts Payable $49,569

Thus, with the purchases of merchandise during the fiscal year at a cost of $49,569, the Assets (inventory) and Liabilities (accounts payable) are increased by the same amount.

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