1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
3 years ago
9

Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou

t trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $ 1.06 billion. The country collected $ 1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Business
1 answer:
sattari [20]3 years ago
5 0

Answer:

The formula to calculate the Budget Balance is

Government Income - Government Expenditure

in this case

$1.05 billion - $1.06 billion = -<u> 0.01 billion or - $100 million</u>

Explanation:

A budget balance is reached when a government expenditures are equal to it's income.

In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.

Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.

You might be interested in
What is the price of a European put on a non-dividend-paying stock when the stock price is $79, the strike price is $77, the con
Orlov [11]

Answer:

The price of an European Put Option = $4.03

Explanation:

Hi, you have to use a formula for the evaluation of an European put option on an underlying, which does not pay dividends. This equation follows the Black & Scholes-Merton model.

This is the model for a put option

p(s,t)=-SN(-d1)+Ke^{-rt}N(-d2)

N(-d1) is the cumulative normal distribution function, calculated as follows.

d1 =\frac{Ln(S/K)+(r+\frac{sigma^{2}}{2})t  }{sigma\sqrt{t} }

for N(-d2) yoou have to make the following calculation

d2=d1-sigma\sqrt{t}

where:

K = Opcion strike price

N = Standard normal cumulative distribution function

r = Risk Free interest rate

σ = Volatility of the underlying

S = Price of the underlying

t = Time to option´s expiry

Here are the result of all the above calculations

S= $79.00    

K= $77.00    

r = 6% annual  

sigma =25% annnual  

t = 0.67  years (That is 8/12 to turn months into years )

d1 = 0.42  

d2 = 0.22  

N(-d1) = 0.335913098

N(-d2) = 0.41312295

e^(-rt) = 0.960789439

 

p(s,t)= - 79(0.3359...) + 77(0.9607...)(0.413122...) = $4.03

Notice the excel spreadsheet attached.

best of luck .

Download xlsx
5 0
3 years ago
Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.
kotykmax [81]
If they do lower the money supply, they would lose money when they sell a security.
8 0
3 years ago
According to mercantilism the accumulation of national wealth depended on the
g100num [7]
For the answer to the question above, the accumulation of national wealth depended on the increasing a nation's trade surplus according to mercantilism. The more you produce than what you import. It's like in business but in a bigger perspective.
4 0
3 years ago
Read 2 more answers
Norbert works in a beauty salon. he receives a 50% employee discount for salon services. in 2016, he used his discount to buy $1
Crank
The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.
4 0
3 years ago
Timothy is looking for suppliers for his cheese-making business. He examines a list of suppliers whom he can contact with a busi
elixir [45]

Answer: Supplier selection process

Explanation:

Supplier selection process is the scenario where an individual or a company wants to purchase an item and they contact various vendors who do such business, and asking them for prices, details; generally the requirements for the items they want, they now choose out of the various vendors options, that which matches what they want.

Timothy is in the supplier selection process, where he's evaluating every detail from the vendors based on his request, with an option to request from any of them that matches his request.

7 0
3 years ago
Other questions:
  • Harold runs a business that manufactures electrical equipment. Recently, he organized a press conference to promote the eco-frie
    12·1 answer
  • How to succeed in business?
    9·1 answer
  • The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015,
    12·1 answer
  • The difference between a merger and an acquisition is: Select one: a. That a merger involves one company purchasing the assets o
    6·2 answers
  • What is a balance sheet?
    7·2 answers
  • According to the Marketing Concept, a. Companies produce only what customers want. b. A company should produce only basic produc
    9·1 answer
  • Sanders Co. is planning to finance an expansion of its operations by borrowing $49,200. City Bank has agreed to loan Sanders the
    5·1 answer
  • 4. Which of the following do not have to be repaid by the business?
    9·1 answer
  • Gregory visited a prospect for the first time this morning, chatted a while with
    10·2 answers
  • Calico Company has two operating departments: Department A and Department B. Department A occupies 30% of the floor space of the
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!