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2 years ago

Which of these are loans to businesses or governments?

2 answers:

5 0

<span>Bonds are actually a type of borrowing or loans most businesses and governments use. They represents an alternative to the common bank loans, however they enable loan of higher amounts of money, that governments need but ordinary banks are not able to provide.</span>

topjm [15]2 years ago

4 0

The answer is "Bonds"

I took the test and got it right

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Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals ac0ounts for the

makkiz [27]

Answer: Option B

Explanation: In simple words, closing entries refers to the journal entries which are made at the end of an accounting period for transferring the temporary account balances into permanent accounts.

These entries are made to close the four accounts for clear depiction of capital at the end of they year, these accounts are income, expenses, income summary and dividend account.

The objective behind making such entries is to clear the temporary accounts balance to zero for the next accounting period.

8 0

3 years ago

Acme published a story about paul and as a result paul sued acme for damage to his reputation, emotional distress, and punitive

ivolga24 [154]

All of the benefits for <em>non-personal injury</em> cases must be reported as gross income for tax purposes. Since defamation isn't a personal injury claim, all of the award must be reported and is subject to taxation.

7 0

3 years ago

Read 2 more answers

"The US government decides to lower military expenditures to reduce the budget deficit.What effect would you expect this shock t

algol13

Answer:

A decrease in military investment by the government, with the aim of lowering public spending, would in turn mean a decrease in aggregate demand, as less money would be inserted into society, which would reduce outputs and, due to the reduction in demand, it would also reduce inflation.

Public expenditure, in economy, indicates the complex of money of public origin that is used by the government in public goods and/or public services aimed at pursuing public purposes, such as military expenditures for national defense. These are therefore the outputs by the government and therefore an item of liabilities within the national budget, the coverage of which is necessarily entrusted to taxation on taxpaying citizens or public debt. If public expenditure is not adequately covered by the revenue of a non-sovereign state (e.g. taxation), it enters a typical financial situation of public deficit.

8 0

3 years ago

Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to

Luda [366]

Answer:

Correct option is (B)

Explanation:

Given:

Bond issue amount = $15,000,000

Market interest rate = 7.75%

Investors cannot pay interest more than $1,150,000

Choate cannot choose 6.5%, the bond will become less attractive to investors as it indicates that the bond is selling at discount.

If 7.75% interest is given that is the market interest, then interest amount would be $1,162,500 (15,000,000 × 0.0775)

Choate cannot afford to pay more than $1,150,000, so it cannot offer bonds at 7.75% or 8.1%.

The only option left is 7.65%. Interest amount would be $1,147,500 (15,000,000 × 0.0765) which is less than what the company can afford. Also, it is just marginally lesser than market interest rate of 7.75%, so bonds would still be attractive.

Choate should select 7.65%.

3 0

3 years ago

You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla

kotykmax [81]

Answer: An astute trader can make $ 41,666.66.

Explanation: You must first change

$ 1,000,000 per pounds, which would leave a total of £ 500,000. ($ 1,000,000 / 2.00 = £ 500,000;).

Secondly spend £ 500,000 to euros, obtaining € 600,000 (£ 500,000 x 1.20 = € 600,000;).

Thirdly, with euros, buying dollars again, obtaining $ 960,000 (€ 600,000 x 1.60 = $ 960,000), that is, an arbitrage loss of -40,000 in relation to the initial investment.

Finally you must return in the opposite direction:

$ 1,000,000 / 1.6 (€) / 1.2 (£) * 2 - $ 1,000,000 = $ 41,666.66 that is, an arbitrage profit.

4 0

3 years ago