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2 years ago

Describe two disadvantages of early forms of money, and explain how they could have been fixed.

2 answers:

8 0

Every country had different types of coins with different values and they were not easily comparable in value with the money from the other countries. This could have been fixed with collaboration between neighboring countries from certain areas to create same types of coins that have the same value so that they can use them easily for the trade that was occurring between the different economies.

Every craftsmen that had the skills and tools and suitable material was able to create copies of the money. This could have been fixed with strict regulations on every craftsmen by the authorities. Also putting a unique mark on the different types of coins by the official producers that was not easy to be copied.

slava [35]2 years ago

8 0

Early forms of money was made up of such things which were easily available and so the currency could be copied.
It was difficult to compare two different places currency values.

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Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls f

Keith_Richards [23]

Answer:

Amortization Schedule

Year Payment Principal Interest Balance

1 35,560.00 28,000.00 7,560.00 56,000.00

2 33,040.00 28,000.00 5,040.00 28,000.00

3 30,520.00 28,000.00 2,520.00 0.00

Explanation:

Loan of $84,000.00 at 9% interest with 3 annual payments at Constant Principal Payments of $28000 .

Total Payments: $99,120.00 Total Interest: $15,120.00

The Interest payment and principal amount is gradually decreased with principal value of the loan. The principal value at the end of the year 3 is zero.

7 0

3 years ago

An efficient market reflectsA) only historical information.B) only the information related to events that have already occurred.

Masja [62]

Answer:

The correct answer is option D.

Explanation:

The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.

Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.

4 0

3 years ago

A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current

Leno4ka [110]

Answer:

$11.60

Explanation:

In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price

The par value of the preferred stock=$100(since call price is $110)

convertible price=$10

conversion ratio=$100/$10=10

The parity price is the current market price of the preferred stock divided by the conversion ratio

Parity price=$116/10

Parity price=$11.60

4 0

2 years ago

An economic model is useful only if it: ______________

finlep [7]

Answer:

b. contains no positive statements.

5 0

2 years ago

You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75

valkas [14]

Answer:

3.44%

Explanation:

The computation of the return if sold the fund at the year end is shown below:

= {[Price × (1 - Front End Load) × ((1 + fund increase percentage) -expense ratio)] - price} ÷ price

={[$20 per share × (1 - 5.75%) × ((1 + 11%) - 1.25%)] - 20} ÷ 20

= 3.44%

We simply applied the above formula so that the correct return could come

6 0

2 years ago