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vaieri [72.5K]
3 years ago
7

Ai​ Lun, a management trainee at a large New Yorkdashbased ​bank, is trying to estimate the real rate of return expected by inve

stors. He notes that the 3dashmonth Tdashbill currently yields 3​ percent, and consumer prices have been rising steadily at a​ 2% rate for several years. What should Ai​ Lun's estimate of the real rate​ be?
Business
1 answer:
QveST [7]3 years ago
5 0

Answer:

Ai​ Lun estimate that  real rate would be 1%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

In this case ,

Nominal interest rate =3%

Inflation rate  is given by the rising of the consumer prices =2%

So,  

Real rate of return =3% - 2%

Real rate of return=1%

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When expansionary monetary policy is used to increase aggregate demand, starting from equilibrium, which of the following is tru
juin [17]

Answer:

a. Benefits of growth;

1. Increased production to meet demand

b. Negative effects of inflation;

1. Increased opportunity cost of holding money

Explanation:

a.

Expansionary monetary policies are government incentives that aim to encourage the growth of the economy by increasing the supply of money in the economy. It involves the boosting of aggregate demand to cover for the shortfalls in private demand. Most economies that go into a recession is usually due to a lack in the aggregate demand. The main purpose of expansionary monetary policy is to encourage spending and investment by encouraging accessibility of money in the economy. When more people have access to money, they tend to invest more into the economy which encourages economic growth. On the same note, when individuals in an economy have money, it increases the availability of disposable income. This means that most people feel much wealthier which encourages them to spend more. Spending also increases demand for goods which encourages production which consequently encourages economic growth.

b.

On the contrary, when expansionary monetary policy exceeds a certain level, it leads to inflation. Inflation is basically the increase in prices in an economy due to increased demand for goods that surpasses the supply. Thus suppliers increase the price since the availability of goods and services is limited. Some effects of inflation include an increased opportunity cost of holding money and discourages investors since they are uncertain over the future.

6 0
2 years ago
Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a dividend of $0.63 today and then you so
m_a_m_a [10]

Answer:

The return on investment was 9.38%

Explanation:

Data provided in the question:

Amount invested in dividend stock = $60

Dividend received = $0.63

Amount for which dividend was sold = $65

Now,

The total return from the dividend

= (Selling cost + Dividend received ) - Amount invested

= $65 + $0.63 - $60

= $5.63

Therefore,

The return on investment = [ (Total return ) ÷ Amount invested ] × 100%

= \frac{\$5.63}{\$60} × 100%

= 9.38%

Hence,

the return on investment was 9.38%

3 0
3 years ago
Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
babymother [125]

Answer:  No,the company is not guilty.

Explanation:  In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.

Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.

Hence, Hines could not be charged of guilty of price discrimination.

6 0
2 years ago
Depreciation is the accountant's estimate of the cost of ______ used in the production process matched with the benefits produce
faust18 [17]

Answer:

Fixed assets and equipment

Explanation:

Depreciation is the accountant's estimate of the cost of fixed assets and equipment used in the production process matched with the benefits produced from owning it.

It is the decrease in the value of assets and the method used to reallocate the cost of asset over its useful life span.

Assets can be categorized as :

1. Current

2. Fixed

3. Tangible

4. Intangible assets.

In accounting, there are several standard methods of computing depreciation expense:

1. Fixed percentage

2. Straight line

3. Declining balance methods.

4 0
3 years ago
Globalization is:
Karolina [17]

Answer:

d) making HR planning more critical and complex.

Explanation:

Globalization refers to the way of interacting with different people around the world in order to get healthy relationship for business purpose. Communication technologies become a helping hand to make globalization so easy and efficient.

Increase Globalization increase the practice of human Resource, in order to maintain the workforce in a more systematic way thus globalization make human resource planning more complex.

5 0
3 years ago
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