Answer:
Winners
- 3rd National, a bank that loaned many people money for home purchases.
Losers
- Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
- Herb, who keeps his savings in an old coffee can.
- Joy, who has borrowed $40,000 to pay her college education.
- The US federal government which had almost $15 trillion in debt in 2011.
Explanation:
When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.
By doing that, they want to stop it or slowly decelerate it.
So that it becomes more expensive to take a loan, the idea is to reduce consumption.
In Economics, it's a bad scenario after all. Few winners. Many losers.
So, let's examine them
Winners
- 3rd National, a bank that loaned many people money for home purchases.
At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.
Losers
- Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.
- Herb, who keeps his savings in an old coffee can.
Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.
- Joy, who has borrowed $40,000 to pay her college education.
Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.
- The US federal government had almost $15 trillion in debt in 2011.
Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.
Answer: Keep your account open and you will earn more on Interest you've already earned
Explanation:
Since Tom's investment account at his bank has a compounding interest, the best advice that'll be offered to Tom is to keep the account open and he will earn more on Interest than what he has already earned.
It should be noted that compound interest makes ones money grow faster. The reason for this is due to the fact that the interest is calculated based on the accumulated interest that the individual has earned over time and the original principal.
Therefore, it isn't advisable for Tom to withdraw his money or ask the bank to compound the interest less frequently but rather, he should keep the account open as he'll earn more interest.
Answer:
Dollar value LIFO retail method
Explanation:
Dollar-Value LIFO aim to reduces the effect of the liquidation, allows companies to use FIFO internally and also reduces clerical costs.
Dollar value LIFO retail method are retailers way of getting or achieving the LIFO cost flow without monitoring individual units and this may lead to low liquidation of LIFO cost layers that could occur during tracking.
Encourage the customer to complain without interruption and then give a sympathetic response.
<u>Explanation:</u>
Here are straightforward tips, layouts and models for composing great objections letters. This way to deal with grumblings letter-composing is compelling for private purchasers and for business-to-business clients who look for positive results from composing letters of grievance.
The standards apply to grievances messages and telephone calls as well, despite the fact that letters remain commonly the most dependable and successful approach to grumble, particularly for genuine protests.
Viable grievances letters (and some other method for grumbling) ought to be:
Envision you are the individual accepting clients' letters of protests. This causes you understand that the individual perusing your letter is a genuine person with sentiments, attempting to carry out their responsibility as well as could be expected.
Your letter ought to urge them to react emphatically and supportively to the protest. Regardless of how frantic you feel, hostility and showdown doesn't urge a supportive response to objections.
Answer:
total amount of goodwill recognized at the date of acquisition is 650000
Explanation:
given data
ownership = 80%
common stock = $1,200,000
net assets = $850,000
book value = $600,000
to find out
total amount of goodwill recognized at the date of acquisition
solution
we know here goodwill of controlling interest is
goodwill of controlling interest = common stock - ( net asset × ownership )
put here value
goodwill of controlling interest = 1,200,000 - ( 850,000 × 80% )
goodwill of controlling interest = 520000
and total amount of goodwill recognized at the date of acquisition
will be
total amount = 
total amount = 
= 650000
so total amount of goodwill recognized at the date of acquisition is 650000
