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Damm [24]
3 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]3 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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Using a large value for order k in the moving averages method is effective in
Masteriza [31]

Answer:

The correct answer is A that is smoothing out the random fluctuations.

Explanation:

The higher values of K states the greater number of the values which need to be consider for forecasting.

When consider or taking the larger or the higher value of the irregular fluctuation which could be decreased or reduced.

And as a consequence, the large value of K will be used for smoothing of the random fluctuations.

Therefore, the right answer is smoothing of the random fluctuations.

4 0
3 years ago
Who lowered interest rates on government bonds in order to create a fund to pay an annual sum to the survivors of the emigres wh
REY [17]

Answer:

Charles X

Explanation:

Charles X was a king of France between 1824 and 1830 and for the greater part of his life was known as the Count of Artois. During his reign as king, Charles X, whose full name is Charles Phillipe, lowered interest bonds to create funds to pay survivors of the emigres who forfeited their lands. He also restores primogeniture(the right of succession of the throne by first borns). He also enacted the law of death or imprisonment for sacrilege in his support of the Roman Catholic Church.

Cheers.

5 0
3 years ago
Here are the data for the past 21 months for actual sales of a particular product:LAST YEAR THIS YEARJanuary 325 260February 440
Ronch [10]

Answer:

Fore cadet for fourth quarter us $1085

Explanation:

One Quarter = 3 months

Demand for quarter 1 = 325 + 440 + 450 = 1215

Quarter Demand in Each Quarter Weighted Forecast

1 1215

2 1280

3 1125

4 1610

5 1010

6 1220

7 1055

8 1085

Weighted moving Average Forecast = ((0.25 * 1010) + (0.25 * 1220) + ( 0.5 * 1055) = 1085

Forecast for the fourth quarter is 1085

7 0
3 years ago
Large purchased all of Small's voting stock for $11 million when Small's total owners' equity was $4 million. The book value and
hoa [83]

Answer:

The amount of goodwill that is recorded by Large is $5 million

Explanation:

Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.

Net assets in the sense implies the fair value of total assets less fair value of liabilities.

Fair value of total assets is $9 million

Fair value of liabilities    is $3 million

As a result net assets upon acquisition  is $6 million($9 million less $3 million)

Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).

The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition

8 0
3 years ago
Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following sales for the first four mo
Zanzabum

Answer:

2,060 units

Explanation:

As we know thestock policy of the firm is the ending inventory for each month should be the 30 % of the next month's sales

In the case of february, following this policy:

  • Starting inventory: is the same of ending inventory of the previous month: 0,3*2,000 (February´s sales) units= 600 units.
  • Ending inventory= 0,3*2,200 (March´s sales) units= 660 units

Also, Ending Inventory (EI) is the result of the sum of Starting Inventory (SI) and  February Purchases (P) minus February Sales (S)

  • EI= SI+P-S

We want to know P ( units Purchased), so:

P= EI-SI+S= 660-600+2,000=2060 units

8 0
3 years ago
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