<span>Higher interest rates are a trade‐off for lower liquidity meaning, if you choose an account with a higher interest rate to earn more money, you have a smaller chance for liquidity.
A checking and savings account typically have a lower interest rate but you have a larger chance for liquidity (spendability). With something like a certificate of deposit, you have a higher interest rate but less options with regards to spending. </span>
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Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Answer:First and last months rent
Explanation:
Answer:
3. Opportunity Cost
1. Marginal Decisions
2. Resource Scarcity
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If David buys the camera he would forgo the opportunity to buy a tv and if he buys a tv, he forgoes the opportunity to buy a camera.
Marginal decisions look at the benefit of increasing or decreasing an input by little units. Here, the educational company is considering the marginal benefit of increasing the numbers of economist by one unit.
Ava has limited time to do all she would like to do. Time here is a scarce resource. Her wants her limited but the resources are scarce.