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Whitepunk [10]
3 years ago
5

What would you expect to have happened to the spread between yields on commercial paper and Treasury bills immediately after Sep

tember 11, 2001?
A. No change, as both yields will remain the same.

B. Increase, the spread usually increases in response to a crisis.

C. Decrease, the spread usually decreases in response to a crisis.

D. No change, as both yields will move in the same direction.
Business
1 answer:
7nadin3 [17]3 years ago
6 0

Answer:

The correct answer is option B.

Explanation:

Generally, during the crisis, it is observed that investment moves in the direction of safer assets. This causes their prices to go up and as a result, the yields go down. Treasury bill is considered safer as it is issued by the government. So, the price of treasury bills will increase and yields will go down.

At the same time, investment in commercial papers would decrease This will cause their price to fall and the yield will increase. This will further cause the difference or spread between the two yields.

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"The internal rate of return method differs from the net present value method in that it results in finding the" _______________
Elenna [48]

Answer: profitability

Explanation: The internal rate of return method differs from the net present value method in that it results in finding the profitability of the potential investment.

In capital budgeting which is the process by which companies determine whether a new investment or expansion opportunity is worthwhile and if undertaken, could either yield net profits or losses for the company, both the net present value (NPV) (present value of cash inflows minus the present value of cash outflows over a given period time) and the internal rate of return (IRR) methods are employed.

How does the IRR method determine profitability? - This it does by using a percentage value rather than a dollar amount and therefore is advantageous in representing the possible returns of investments by comparing it with other alternative investments.

4 0
3 years ago
One problem with government operation of monopolies is that?
Nataly [62]

One problem with government operation of monopolies is that the government typically has little incentive to reduce costs.

<h3>What is a monopoly?</h3>

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. A monopoly sets the price for its goods and services.

An example of a monopoly is a utility company

Here is the complete question:

One problem with government operation of monopolies is that a. a benevolent government is likely to be interested in generating profits for political gain. b. the government typically has little incentive to reduce costs. C. a government-regulated outcome will increase the profitability of the monopoly. d. monopolies typically have rising average costs.

To learn more about monopolies, please check: brainly.com/question/10441375

#SPJ1

6 0
2 years ago
In which career would you typically oversee the creation of materials that communicate a favorable public image of your employer
Darya [45]

Answer:

B) Public Relations Manager

Explanation:

A public relations specialist is someone who creates and maintains a favourable public image for their employer or client. They write material for media releases, plan and direct public relations programs, and raise funds for their organizations.

Hope this helps..please vote with thanks

5 0
3 years ago
Jack, Jamie, Ronnie, and Stephan own the only computer software manufacturing companies in the country. When Jack increases the
Likurg_2 [28]

Answer: Perfect Competition

Explanation:

This is a situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent.

6 0
4 years ago
Read 2 more answers
Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the i
RideAnS [48]

Answer:

Cash paid 168,000

Explanation:

Assuming that there were no inventory at start of the year

purchases during the year :

Sold                                                     = 155

Closing inventory                              = 21

Total purchase (155+21)                    = 176

Cash paid for merchandise = total purchase - increase in liability

Cash paid = 176-8 = 168

4 0
3 years ago
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