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lorasvet [3.4K]
3 years ago
8

When inflation increases, the market value of outstanding fixed income securities will MOST likely:(A)Increase(B)Decrease(C)Rema

in the same(D)Become very volatile
Business
1 answer:
lubasha [3.4K]3 years ago
7 0

Answer:

(B)Decrease

Explanation:

Interest rate is inversely related to the market value of fixed interest income securities like bonds, certificate of deposits, preferred stocks e.t.c.

The higher the inflation, the higher the interest rates all things being equal. An increase in interest rate will drive down the market value of fixed income securities because inflation reduces the real returns on fixed income securities.

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Employers are least likely to help pay for at least a portion of which of the following employment benefits?
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Sherry is functionally blind and seems uninterested during class demonstrations or teacher-directed activities. what can you do
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3 years ago
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supp
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Answer:

Explanation:

                                                         Make          Buy           Net income

Variable manufacturing costs      $54,000        $0            $54,000

Fixed manufacturing costs           $27,000      $27,000     $0

Purchase price                              $0                $67,500    -$67,500

Total annual cost                          $81,000      $94,500    -$13,500

Conclusion: Manson Industries should make the part as making part save cost than buying it.

<u>Workings</u>

                                                    Make           Buy

Variable manufacturing costs  13500*4      0

Fixed manufacturing costs       13500*2      13500*2

Purchase price                           0                 13500*5

3 0
3 years ago
The net investment income tax (niit) is computed on ___________.
omeli [17]

<span>Net investment is computed on several factors which includes capital gains, rental and/or royalty income, income from businesses, interest. To calculate net investment income, an individual's investment  income will be reduced by a certain amount . This is simply to determine the depreciation of the investment.</span>


4 0
3 years ago
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