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3 years ago

The difference between the nominal interest rate and the real interest rate is

2 answers:

8 0

Answer: the correct answer is letter D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation: in financial maths when you speak about "real" rates you should consider the inflation impact.

anyanavicka [17]3 years ago

8 0

Answer:

D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation:

The nominal interest rate is that interest rate that is advertised by the financial institutions either as interest on loan or deposit. Since it is the interest rate stated in financial instruments like the ones quoted on bonds, it is also seen as the stated interest rate.

The real interest rate is the interest rate which has been adjusted to remove the effect of inflation. That is, to get the real interest rate, take the nominal interest rate and subtract the inflation rate. therefore, we can use the following formula.

Real Interest Rate = Nominal Interest Rate - Inflation Rate.

In fact the real interest rate can be sen as the real cost of borrowing money.

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This a "scientific management" also known as Taylorism . The main approach of this school is reduce the waste to minimal and optimize workforce. Paying an employee per production will be a taylorism approach since you only pay for the effective production and if the employee wants to earn more money, the employee will have to improve his productivity in order to produce and earn more.

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3 years ago

Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bon

kirill115 [55]

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A. debit to Interest Receivable for $2,000

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3 years ago

As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative t

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A. Todd, American, to visit Macedonia spring brew

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Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.

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The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.

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3 years ago

A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to

nasty-shy [4]

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Correct Answer:

a. Manufacture the product at home and let foreign sales agents handle marketing.

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For the small Canadian company, manufacturing the product at home (Canada) would afford them the opportunity to protect their new medical product from piracy. Also, they would be able to receive tax incentives from their government as well file for patent of their new innovation.

The foreign agent would strictly be focused on the marketing of the finished product without having access to the detailed information of the product.

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2 years ago

Ferguson corp. purchased inventory on account for $20,000. the entry to record this transaction would include?

Marianna [84]

The entry to record this transaction would include:

Dr. Inventory $20,000

Cr. Accounts payable $20,000

What does it mean to purchase inventory on account?

Purchasing the inventory on account for $20,000 means that Ferguson corp. did not make payment for the inventory immediately, it rather purchased the inventory on credit with a promise to pay later.

As a result, the liability of Ferguson corp. has increased, specifically, the company would credit accounts payable with $20,000 such that inventory, which is the receiving account is debited with the same amount

Find out more about journal entry on:brainly.com/question/11312217

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2 years ago