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Damm [24]
2 years ago
8

Your bank offers to pay you a 3% interest rate on a one-year fixed-deposit saving account. The inflation rate is expected to be

2% by the end of the year. Which of the following will be true if you decide to keep the money in the bank and the inflation rate turns out to be 4% by the end of the year?
I will be worse off
The bank will be worse off.
Both the bank and I will be worse off.
Neither the bank nor I will be worse off
Business
1 answer:
Lubov Fominskaja [6]2 years ago
7 0

Answer: By the end of the year I would be worst off

Explanation: This is because my savings would shrink ,although an interest is paid on the fixed account, the interest is not increasing at the rate at which the inflation is growing.

At any time savings don’t increase at the same rate as inflation, the owner of the fixed savings account will effectively lose money.

This is because with an increase in inflation comes a reduction in the buying power of an individual.

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EastWind [94]

Answer:

The correct answer is dominating.

Explanation:

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4 0
3 years ago
For most businesses, annual straight line depreciation expense on the company's building is what type of cost?
Rom4ik [11]

For most businesses, annual straight line depreciation expense on the company's building is fixed cost.

A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.

Learn more about fixed costs here:

brainly.com/question/17100497

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6 0
10 months ago
(last word) based on economic theory and research on tuition costs and student borrowing, the best way to reduce tuition costs f
Rina8888 [55]

Answer:

Increase Subsidies for student loans.

Explanation:

By increasing subsidies on student loan, student can acquire higher loans to pay off tuition fees because they are sure of paying back less loan and lesser interest on the loans.

7 0
2 years ago
A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00 pe
yanalaym [24]

Answer

Option C

Decrease in cost   $132,672

Explanation:

T<em>o determine the increase or decrease in  costs associated with making, we will compare the relevant costs of the two options as follows</em>

<em>                                                                          $</em>

Variable cost of making                                10

Variable cost buying                                      <u>14</u>

Savings in  cost per from making                 4

Total cost savings (decrease)    4 × 33,168 = $132,672

Decrease in cost as result of making =$132,672

4 0
2 years ago
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tigry1 [53]

Answer:

concentrated demand

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Business to business (B2B) salespeople have a very different job than regular salespeople, since every client matters and every client is VIP. B2B buyers know exactly what they want, and they will demand the best possible product at the least possible cost, specially if they are large corporations. The advantage of B2B sales is that one big sale can make a huge difference to your company and yourself. For example, companies that supply auto parts generally have only a few clients, since there are less than 10 car manufacturers in the US, but any sale involves millions of units.

7 0
2 years ago
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