Answer: Option (a) is correct.
Explanation:
Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.
The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.
If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.
So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.
This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.
Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.
Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.
The unit selling price of the selling price is equal to the sum of the original price and the amount that should be added for the marking-up, which is equal to 30% of the original per unit cost. This can be calculated through the equation below.
per unit selling price = ($18)(1.30) = $23.4
ANSWER: $23.4
Answer:
B) losses you avoided by not buying a stock that has since decreased in price
Explanation:
If a stock has not been bought, there has not been a transaction involving that particular stock. Even though, in theory, you may have avoided losses by not buying a stock that has decreased in price, there hasn't been any actual gain or loss on investment related to that stock since there was no investment.
Since all other alternatives present valid parameters when calculating return on investment, the answer is B).
Answer:
As a Medium of Exchange
Explanation:
The four functions of money are:
- As a Medium of Exchange
- As a Measure of Value
- As a Store of Value
- As a standard of Deferred Payment.
As a Medium of Exchange
Money as a medium of exchange has its most important role of facilitating the exchange of goods and services. Hitherto before the advent of money. Trade by Barter was the only means of conducting transactions. The use of money in the exchange of gods and services solved the major difficulty encountered with the barter system, which his "Double coincidence of wants".
Money by performing its most traditional role is accepted by all irrespective of whether they need each others good or services.
However to fulfill this role or function, Money has to be generally acceptable, portable, divisible, durable, stable in value and homogeneous.
Answer:
Cost of preferred stock = 12%
correct option is A. 12 percent
Explanation:
given data
preferred stock = $125 per share
annual dividend = $15
cost of issuing and selling = $4 per share
to find out
cost of the preferred stock
solution
we know that Cost of preferred stock is express as
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost) ...........................1
and we know Flotation cost will be here = 
= 3.20 %
so
from equation 1 we get
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost)
Cost of preferred stock = $15 ÷ ($125 - 3.20 % )
Cost of preferred stock = 0.120030
Cost of preferred stock = 12%
correct option is A. 12 percent
