Answer
Retained earnings at the beginning of Year 2 was: $1,450
Explanation
Revenue = $2,100
Retained Earnings Closing Balance = $1,850
Expenses = $1,150
Dividends = $550
Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance
$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance
Retained Earning Beginning Balance = $1,450
Answer:
False
Explanation:
In order to attract more customers to your store and sell larger quantitative, you must sell at a price below the competition, not above.
Rational customers should purchase at the lowest possible price, that is the basic concept behind the law of supply and demand. A lower price should result in a higher quantity demanded.
Answer:
The correct answer is option A.
Explanation:
Liquidity preference theory was given by J.M Keynes. He states that money is demanded by people because it holds certain liquidity.
There are various motives involved for which people prefer liquidity. These motive are precautionary, transactionary and speculative motives respectively.
When the demand for money is more than supply, it means there is excessive demand. This excess demand will lead to increase in the interest level. At higher interest, the quantity of money demanded will fall.
Answer:
Follows are the solution to the given points:
Explanation:
In point a:
Formula:
In point b:
Formula:
In point c:
Formula:
In point d:
Formula:
In point e:
Formula:
Answer:
D) securities' returns are negatively correlated.
Explanation:
For diversification we want to reduce risk thus, the stocks must be diverse they must be different. That means the situation under one stock increases makes the other incease that way we have a balance portfolio
We need negative correlation among securities.
