The above situation is an example of shoe leather cost of inflation.
A shoe-leather cost is what people pay when they frequently visit the bank to withdraw cash to use to pay for products in the wake of intense inflationary pressure. The term "shoe-leather cost" symbolizes all costs, including time spent, bank fees, brokerage fees and transportation costs.
High inflation discourages people from keeping large sums of cash on hand because the value of money rapidly depreciates during this time. More money is kept in banks by them. Additionally, repeated price increases force people to constantly withdraw money for transactional needs. Due to this, they frequently visit their bank to withdraw cash in order to pay for goods and services. These frequent journeys degrade their shoe leather, resulting in a 'shoe-leather cost.'
To read about hyperinflation see:
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Answer:
PV=1,175
Explanation:
this question can be solved thinking as if we have a perpetuity, it is a future infinite payments, but in this particular case we have those payments (dividends) increasing over the time, so we can apply the next formula:
where PV is the present value of the future payments, i is the interest rate and k is the annual increasing, so applying to this data we have:
The correct answer that would best complete the given statement above would be OPENNESS TO CHANGE. Stimulation is in the openness to change part of the Schwart'z model. Other choices of this given question which you might have missed include conservation, self-enhancement and self-transcendence. Hope this answer helps.
Answer:
C
Explanation:
I just did it and got it right :))
Answer:
The ending cash balance is $40,000
Explanation:
Kindly check attached picture for detailed explanation on Cash Flow statement
