The introduction of intermediaries helps in minimizing the asymmetric information gap by becoming experts.
<h3>What is information asymmetry?</h3>
Information Asymmetry deals with the study of decisions in transactions where one party has more or better information.
The financial intermediary establishes trust by providing a form of guarantee of investment performance to the buyer of securities and a fair price to the sellers of securities.
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Answer:
Medical breakthroughs enable people to enjoy better healthcare nowadays.
Explanation:
An increase in living standard means that the lives of people are better off.
Advances in medicine have made it possible to find cure to various diseases. This improves standard of living.
Increased pollution of air and water and decline of dollar value have negative effects on living standard.
Pollution affects human health negatively and can cause diseases which negatively affect standard of living. Also, pollution can cause floods and other environmental disasters. Floods can displace people from their homes and this affects standard of living negatively.
Decrease in dollar value has made items more expensive.
I hope my answer helps you
Answer:
Please see the naswer below
Explanation:
Activity-based costing ABC is a method for assigning costs to products, services projects, tasks, or acquisitions, based on the Activities that go into them and the Resources consumed by these activities. Following is the proper order of tasks in an ABC system
1. Identify the primary activities and estimate a total cost pool for each.
2.Select an allocation base for each activity.
3.Calculate an activity cost allocation rate for each activity.
4. Allocate the costs to the cost object using the activity cost allocation rates.
Answer: D. U.S. Treasury securities and Discount loans to banks.
Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.
U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.
Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.
Answer:
c.$209,160
Explanation:
Given that the cash received from each sale will be collected over 2 months. If 30% of mechanize is to be sold for cash, then 70% will be sold on account. Further more, 80% of the credit/sale on account will be collected in the month of sale and 20% in the following month.
Hence for October, cash collection will include 20% of credit sale from September and 80% of the credit sale in the month.
Given that sales in September is $250,000
Amount expected to sold on account
= $250,000 - (30% × $250,000)
= $175,000
Amount expected to be collected from this sale in October
= 20% × $175,000
= $35,000
Amount of credit sale in October
= $311,000 - (30% × $311,000)
= $217,700
Amount of this credit sale to be collected in October
= 80% × $217,700
= $174,160
Total collected from accounts receivable in October
= $174,160 + $35,000
= $209,160
