If the Fed decided that virtual money should be included in money supply, we would see a situation where both <u>M1 </u><u>and </u><u>M2 increase/ rise. </u>
M1 is:
- The most liquid money instruments
- Inclusive of cash and close instruments
If virtual money was counted as money, it would increase M1 because virtual money is very liquid as it can easily be converted to cash so it would be counted as M1.
M2 would increase because M1 is part of M2.
In conclusion, both M1 and M2 would increase.
<em>Find out more about M1 and M2 at brainly.com/question/25458814.</em>
Answer:
Preferred stock holders' dividend = $280000
Common stock holders' dividend = $8000
Explanation:
A cumulative preferred stock is one whose dividends are accumulated in arrears and are to paid in the following year(s), if the company fails to pay or partially pay the dividends in a certain year. The yearly dividend on preferred stock is,
Preferred stock dividend = 10000 * 200 * 0.07 = $140000
As the dividends on preferred stock are in arrears for one year, the company will pay a dividend this year on preferred stock of,
Preferred stock dividend to be paid = 140000 + 140000 = $280000
Thus, out of the announced dividend of $288000, $280000 will be paid to the preferred stock holders while the remaining $8000 will be paid to the common stock holders.
Answer: B.Sparrow inc can charge a premium price on its Automobiles.
Explanation:
Sparrow inc can charge a premium price on its Automobiles.
Economic Value is simple the amount of money an economic agent is willing to pay for a good or a service. When both companies incur same amount of costs, for a company to create higher economic value the price must be higher (premium price) or consumers (economic agents) are willing and able to pay premium price for sparrow inc automobiles
Answer:
Explanation:
Date Particulars Amount (Dr) Amount (Cr)
6/30/17 Stock dividends
(60,000 × 20% × 15) 180000
Common stock dividend
distributable 120000
Paid-in Capital in Excess of Par
common stock 60000
7/15/17 No entry
7/31/17 Common stock dividend distributable 120000
Common stock 120000
12/1/17 No entry
12/15/17 No entry
Particulars
1. Common stock = (72000 × 2 × 5) $720,000
2. Number of shares outstanding (60000+12000)×2 144000
3. Par value per share (10/2) $5
4. Paid-in capital in excess of par (150000+60000) $210000
5. Retained earnings (150000+190000-180000) $160000
6. Total stockholders' equity $1090000
Answer: The correct answer is option B; Add D2 to the right of D, showing an increase in demand and increase in equilibrium price.
Explanation: The demand for a commodity is usually affected either positively or negatively by some factors or determinants. Foremost among the factors of demand is price of the commodity. Other factors include;
(a) Price of substitute commodities
(b) Consumers preferences
(c) Population
(d) Weather conditions
(e) Advertising
In the question above, the use of a popular actor as the spokesperson of the product is a form of advertising that is intended to improve upon the perception of the commodity and hence encourage consumers to buy more of it. If the popular personality endorses a product, there is an almost one hundred percent likelihood that consumers would see the product as a preferred choice and this would cause the demand to go up or increase.
An increase in the market demand would be signified by the outward shift of the demand curve to the right from D to D2. Since the x-axis shows the quantity demanded increasing towards the right hand side, then an increase in market demand would be reflected by a shift of the demand curve to the right.
As a result of that, the price would now move from P to P2 which shows an increase in equilibrium price. Also the quantity demanded would move from Q to Q2 which also indicates an increase in demand.
