Answer:
expectations theory
Explanation:
Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.
The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".
Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.
This theory helps investors to make profits faster and even higher through multiple investments on bonds.
Cheers.
Answer:
What is the Value of Bank Deposits?
bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000
What is the Money Supply?
money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000
Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?
if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250
total money supply = $2,000 - $250 = $1,750
Answer: The demand is shared with the new company that enters the market.
Explanation: The Cournot duopoly is an imperfect competition model, that is, the law of supply and demand is not freely used, in which two companies with equal costs compete with homogeneous goods in a static environment, that is, with the same characteristics.
For example: A leading brand of soda in the market, get a competitor that has the same characteristics. People will prefer one of the two brands and they will always lead the market, but they will have to divide the market.
Answer:
Match the invoice with the PO.
Record the transaction in the system.
Post the transaction to a ledger
Generate unadjusted Trial balance
Prepare adjusted Trial Balance.
Issue Financial statements
Closing entries
Post closing Trial balance.
Explanation:
The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.
Answer:
The price should be recorded as $167,500
Explanation:
As per the accounting principles, assets should be recorded at the price they were paid for. In case of a purchase, the accountant should record in the books the amount the company paid to acquire the asset. For sales, the amount received from the buyer is the figure to be recorded in the books.
For Reliable Repair Service, there were different prices quoted, but the buyer paid $167,500. It means the company sold the land for $165,000. This is the amount that should be recorded in the books.
