Answer:
D. Both A and B above are true
Explanation:
A. The unemployment rate equals 4.4%
The unemployment rate for a country is the division between the Unemployed ( 7.1 million) and the Labor force (160.2 million):
That is true.
B. The labor force participation rate is 62.9%
The participation rate is simply what percentage represents a number versus the total, in this case, the percentual participation of the labor force in the working age population:
That is true.
C. The labor force is 254.6 million
This is false, the labor force is 160.2 million, the working age population is 254.6 million.
So the correct answer is D.
Answer:
a means or device used as a cushion against the shock of fluctuations in business or financial activity
Management should understand and apply THE EQUITY THEORY.
The equity theory refers to the principle that individuals are motivated by fairness; if they discover inequities in the input or output ratio of themselves and a relevant referenced group, they tend to adjust their input to reach their perceived equity.
D. all of the above
hope this helped:)
Answer:
number of contracts needed to hedge is 3714
Explanation:
given data
asset duration = 5 years
liability duration = 2.5 years
assets = $1,000 million
liabilities = $750 million
time = 8.5 years
currently selling = $99,000
contract = $100,000
to find out
How many futures contracts does the bank need to fully hedge itself against interest rate risk
solution
we get here no of contract that is express as
no of contract = (DA - k × DL) A ÷ (DF × PF) .......................1
here DA is asset duration and DL is liability duration and A is assets and DF is time and PF is currently selling and
here K is 
k = 
k = 0.75
so now put all value in equation 1
no of contract = (DA - k × DL) A ÷ (DF × PF)
no of contract = (5 -0.75 × 2.5) 1000 ÷ (8.5 × 99000)
no of contract = 3714
so number of contracts needed to hedge is 3714
