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Vesnalui [34]
3 years ago
9

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial

assets _____ interest rates to find willing buyers. Sales of financial assets do not depend on the rate offered. must offer higher can offer 2% can offer lower
Business
1 answer:
expeople1 [14]3 years ago
4 0

Answer: must offer higher

Explanation:

The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.

This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.

In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.

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Data below for the year ended December 31, 2021, relates to Houdini Inc. Houdini started business January 1, 2021, and uses the
katrin [286]

Answer:

70.3%

Explanation:

Current period cost-to-retail percentage is:

  • Beginning inventory  $70,000     $107,000
  • Plus: Net Purchases  $302,290  $450,000
  • Plus: Net markups                         $23,000
  • Less: Net markdowns                   ($43,000)

Goods available for sale (excluding beginning inv.) $302,290   $430,000

Goods available for sale (including beginning inv.)  $372,290   $537,000

Cost-to-retail percentage = $302,290 / $430,000 = 70.3%

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3 years ago
Barbara operates a sporting goods store. She uses the cash method and treats inventory as nonincidental supplies. At the beginni
hoa [83]

Answer:

$454,000

Explanation:

Ending inventory is the value of the inventory in the store at the end of the year.

Goods are purchased and added to the the beginning inventory, the sale for the period is deducted from it. the residual value is the value of ending Inventory.

In This question it is assumed that there is $26,000 of beginning inventory of the goods. $470,000 of the purchases were made and at the end of the year there was $42,000 balance of inventory.

We can calculate the deduction value as follow

Ending Inventory = Beginning Inventory + Purchases - deduction

$42000 = $26,000 + $470,000 - deduction

$42000 = $496,000 - deduction

Deduction = $496,000 - $42,000 = $454,000

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A cell phone provider charges felicia $50 per month for her plan plus $0.05 per min of long distance calls.if felicia wants to k
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$0.05m + $50>55

0.05 per minute plus $50 per month for the plan less than $55
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What should customer service representatives use to achieve a win-win outcome between customers and their employer?
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i think it is the 3rd one I'm not sure but I need help on one of mine and it would be really good if you can help me I will appreciateit

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