Which of the following is not a tool of Monetary Policy?

ompare the cost of the following leasing agreement with the finance charge on a loan for the same time period: The value of the

kow [346]

Answer:

One would want to finance this car rather than take this lease if the finance cost were $11,000 or less

Explanation:

a). Finance charge on the loan

Step 1: Determine the depreciation cost

The depreciation cost can be determine using the expression below;

Depreciation cost=Purchase value-salvage value

where;

Purchase value=$15,000

salvage value=$4,000

replacing;

Depreciation cost=15,000-4,000=$11,000

The total finance charge=$11,000

b). Cost of leasing agreement

Step 2: Determine cost of leasing agreement

Cost of leasing agreement=down payment+monthly payment+acquisition fee

where;

down payment=$500

monthly payment=$315

total monthly payment for 3 years=315×12×3=$11,340

acquisition fee=$300

disposition charge=$150

replacing;

cost of leasing agreement=500+11,340+300+150=$12,290

cost of leasing agreement=$12,290

The cost of lease agreement ($12,290) is greater than the total finance charge ($11,000)

One would want to finance this car rather than take this lease if the finance cost were $11,000 or less

8 0

3 years ago

__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell

ira [324]

Answer:

Franchise

Explanation:

This is a business arrangement where the owner of a successful business gives the right (through special business and legal arrangement) to another, to run such business in a specified location using his brand name in accordance with agreed terms and conditions. Under this arrangement, technical support and training are always provided by the franchiser.

The franchisor charges the franchisee a fee for the right which in most cases is periodic. The franchise is renewable.

7 0

3 years ago

In order to establish criminal liability of the directors of a corporation:

Y_Kistochka [10]

Answer:

a prosecutor must establish that the directors had criminal intent

7 0

3 years ago

The statement of shareholders’ equity reports the transactions that cause changes in its shareholders’ equity account balances.

vazorg [7]

Answer:

B) the issuance of bonds.

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

As such, the sale of additional shares of stock, net income and declaration of dividend are typical reasons for changes in shareholder's equity however, the issuance of bonds is a liability (usually non-current).

6 0

3 years ago

If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms o

Finger [1]

Answer:Is always the same; a straight line

Explanation:

If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms of Y) is always the same and the PPF for these two goods is a straight line

PPF Production Possibility Frontier plays an important role in that It is used to demonstrate the point that any nation's economy reaches its greatest efficiency level. This happens when it manufactures only what it is qualified to manufacture and trades with other nations for the rest of what it needs.

Also called transformation curve, It is a decision making tool That supports that manufacturing of one commodity may increase only if the manufacturing of the other commodity decreases.

6 0

3 years ago