When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.
If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.
As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.
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Answer:
D) budgets are a total amount and standards are a unit amount.
Explanation:
For each given choice in the question explanation is provided below as to why its or its not the correct answer.
A) only budgets contribute to management planning and control.
Both budgets and standards contribute in the planning and control are of the company. Therefore, this option is incorrect.
B) budgets but not standards may be used in valuing inventories.
Once gain both are used for valuing inventory, this is due to the fact that budget contains details gathered in standard costing. Therefore, this option is incorrect.
C) budgets but not standards may be journalized and posted.
Both the budget and standard are journalized and posted in the accounting system. Therefore, this option is incorrect.
D) budgets are a total amount and standards are a unit amount.
As standards are unit amounts which contributes in preparing the budget which are total amounts.
Hence, option D is correct.
Answer:
b. $7,200,000
Explanation:
Common stock of $5,400,000
Retained earnings of $2,000,000
Unrealized losses on available-for-sale securities (<u>$200,000) </u>
Stockholders' Equity $7,200,000
Unrealized gains on trading securities of $100,000 is not being added to the stockholders equity because it has been charges in profit and Loss statement and it is reflected in the net Income which is already been included in retained earning. Only Unrealized losses on available-for-sale securities of 200,000 is reported in the Stockholder's equity under separate head in the balance sheet.
They arise because goods can sometimes be found only in certain parts of the world. A famous example of this was historically silk which was only found in China and everyone had to pay what the Chinese manufacturers said. It was good for Chinese economy because their merchants and silk manufacturers were rich, and in return the consumers were satisfied because they had the original high quality silk coming straight from China which ensured quality.
<h2>Gradual and systematic</h2>
Explanation:
Re-engineering:
- The meaning of re-engineering is redesigning of business process
- This is done to achieve drastic improvement in the business.
Option 1: Sometimes the re-engineering downsize.Downsize means "making size smaller".
Option 2: This option is right since "Gradual and systematic" is not followed in "re-engineering".
Option 3: Since it is a redesign, the outcome of the plan sometimes threaten the employees
Option 4 & 5: If the process is successful then the reward is for sure.
