<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
Answer:
See explanation section
Explanation:
The primary role of the banking system is to accept deposits from the general public so that the money can be given as a loan to the public in an effective way to foster the economy. It is the safest platform where people keep their money to get a bonus while people borrow money to continue operating.
Answer: Dividend yield is 3.3%
Capital gains yield is 17.24%
Explanation:
Dividend yield is given as the ratio of annual dividend per share and stock's price per share.
Dividend per share = $1.9
Share price = $58
Dividend yield = 1.9/58 = 0.033 or 3.3%
Capital gain yield is the appreciation in the price of a stock expressed as a percentage.
Capital gain yield = (current price – original price) / original price x 100
Current price = $68
Original price = $58
CGY = (68-58)/58 * 100 = (10/58)*100 = 17.24%
Answer:
D. All of the above
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Basically, the costs used in a financing a business.
<em>The purposes of the statement of cash flows are to;</em>
A. Predict future cash flows.
B. Evaluate management decisions.
C. Determine ability to pay debts and dividends.
Answer:
There is a lack of user control over publicity.
Explanation:
Publicity is the degree of awareness of a product, company or service. It is the movent of information from the source to the general public.
One of the weakness of publicity is the lack of control the user or source has over it. Once an information is given to the public they form a perception and spread it in a way that the original source cannot control.
The lack of control a user has over publicity can have adverse effects, for example when negative publicity is circulating in the market a company is operating, it can lead to loss of revenue.
