Answer:
1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
Identification: U.S. Treasury Bills (T-bills)
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
Identification: Certificate of deposit
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
Identification: Money Market Mutual Fund
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Identification: Lease Agreement
2. The instruments which are traded in capital markets are Common Stock, Preferred Stock, Corporate Bonds and Certificates of deposits excluding Long-term bank loans.
3. The process in which derivatives are used to reduce risk exposure is called <u>hedging</u>.
Answer:
units started less 200.
Explanation:
Unit at which the process is started on the beginning of January minus the closing inventory is the number of completed units in work in process when there is No beginning Work in process.
Using following formula we will calculate the Units completed in WIP.
Work in process Closing Inventory = Opening WIP + Addition during the period - Completion during the period
200 units = $0 + Addition during the period - Completion during the period
Completion during the period = Addition during the period - $200 units
In the absence of Beginning Inventory the the addition during the period is the number of unit at which the process is started.
<h2>Yes GDP is a good measure of the prosperity of the average person.</h2>
Explanation:
GDP - Gross domestic Product
The GDP will take the entire output of goods and services produced in a year by everyone within the country's borders.
- Real GDP is the best than nominal GDP
- GDP acts as a component of a human welfare
One drawback of GDP is it does not take the amount of pollution, safety and health. It does not take "well-being" too. Suppose if everyone starts working on weekends without "leisure", "GDP" does not take into account. So now it fails to check prosperity along with well being of the average person.
Answer and Explanation:
The computation is shown below:
Return on investment = income ÷ investment
For Simone
= $54 ÷ $605
= 8.93%
For Riley
= $57 ÷ $650
= 8.77%
As it can be seen that simone contains the return on investment so the simone would be preferred
Also, the other factor that should be considered before doing any kind of investment i.e. risk
