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Answer:
Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.
Part (a)
When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.
Part (b)
When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.
Part (c)
As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.
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Answer:
$8,013
Explanation:
The computation of the amount of the depreciation expense is shown below:
The net income is
= An addition to retained earnings + cash dividend paid
= $4,221 + $469
= $4,690
Now the earning before tax
= (Net income) ÷ (1 - tax rate)
= ($4,690) ÷(1 - 0.21)
= $5,937
Now the earning before tax and interest is
= $5,937 + $1,300
= $7,237
So, the depreciation expense is
= $30,600 - $15,350 - $7,237
= $8,013
Answer:
Pricing can vary for each customer.
Explanation:
Under the B2B, the manufacturer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.
Hence, pricing can vary for each customer in a business-to-business (B2B) e-commerce purchases because companies that are engaged in B2B are able to improve their performance and cut down the costs of procurement for goods and services.
Business to business (B2B) markets differ from Business to consumers (B2C) markets because salespeople personally call on business customers to a far greater extent than they do consumers.
