All categories

3 years ago

Indicate the correct term to each description of a financing agent, activity, setting, or instrument.

Business

1 answer:

Brilliant_brown [7]3 years ago

5 0

Answer:

Indication of correct terms:

a. The reward a saver expects on loaned funds: 3. Interest rate

b. The cost a borrower pays for loaned funds: 3. Interest rate

c. The -difference between the real interest rate and the nominal interest rate: 1. Inflation rate

d. The percentage of disposable income that is kept as personal savings: 2. Saving rate

e. The term that indicates most people need to be incentivized to save: 4.Time preference

f. The result consumption exceeding income over a particular period: 5. Dissaving

Explanation:

1. Inflation rate is the ratio of the change in the prices of goods when compared with an indexed figure.

2. Saving rate is the ratio of savings kept behind from disposable income earned. It shows the ratio of income not consumed when earned.

3. Interest rate is the ratio of the amount that is saved or loaned out that people would receive in order to incentivize them to save or lend and prefer the same amount today and in future.

4. Time preference is a term that shows that people value an amount of money today more than they value the same amount received in future. So, they would rather spend that amount today than spending it tomorrow.

5. Dissaving is spending more than income and even tapping into or consuming from the savings account.

You might be interested in

You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 equal annual installments. The first payme

EastWind [94]

The prize is really worth $1,006,512.21.

<h3>What is present value?</h3>

Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000

The present value can be determined using a financial calculator

Cash flow from year 1 to 10 = $150,000

Discount rate = 8%

Present value = $1,006,512.21

Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

3 0

2 years ago

You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your c

Fofino [41]

Answer:

You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your childhood experiences or on any learned behaviors, but rather she emphasizes the importance of your need for love and acceptance. Her approach is BEST described as reflecting humanistic psychology.

Explanation:

Humanistic psychology is focused on each individual's potential and stressed the importance of growth and self-actualization.

8 0

4 years ago

Steadigen Company sells two generators long dash Model A and Model Blong dashfor $ 432 per unit and $ 410 per unit, respectively

ch4aika [34]

Answer:

False

Explanation:

Contribution margin per unit = Sales - variable cost

Contribution margin per unit (Model A) = $432 - $404

Contribution margin per unit (Model A) = $28 per unit

Contribution margin per unit (Model B) = $410 - $304

Contribution margin per unit (Model B) = $106 per unit

False, Contribution margin per unit (Model B) is higher so, motivated to push sales of Model A will be false.

Break-even in units = Fixed cost / Contribution margin per unit

Break-even in units (Model A) = Fixed cost / $28

Break-even in units (Model B) = Fixed cost / $106

6 0

3 years ago

The Gotham Corporation regularly produces budget vs. actual data for its managers. The company is particularly sensitive to pers

Rudik [331]

Answer:

Option C Internal Control Information

Explanation:

The reason is that variance analysis is the process through which we emphasize control over costs which is solely management accounting and is not linked to financial reporting so the option B is incorrect. This information is internally generated which means saying that the information is obtained from external sources is totally incorrect. The option a is generally correct because this information is part of internal information. But Option C is more relateable here so the better option is Option C.

6 0

3 years ago

Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these t

WINSTONCH [101]

Answer:

The answers are Horizontal and Vertical respectively.

Explanation:

Horizontal integration refers to the expansion strategy adopted by the corporations which involves acquisition of one company by another company where both the companies are in the same business line and at same value chain supply level, whereas, Vertical integration refers to the expansion strategy adopted by the corporations where one company acquire another company who is at the different level, usually at the lower level of its value chain supply process.

3 0

3 years ago