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2 years ago

Overspeculation and a decrease in consumer confidence are both leading factors of:?

Business

1 answer:

melomori [17]2 years ago

6 0

Answer:

a stock crash

Explanation:

Speculation refers to trading high risk securities in an attempt to earn higher than normal returns. Speculators use stock market fluctuations to purchase and sell risky securities, and when it is aired with buying on the margin the risk increases by the margin amount. Speculators profit from abrupt changes in security prices, and sometimes will artificially increase the price of securities (i.e. a stock market bubble).

Consumer confidence is vital for an economy's health and when it falls, the first place that takes notice of it is the stock market. A decrease in consumer confidence means less private consumption which inevitably results in an economic recession.

When both factors meet, over speculation and a decrease in consumer confidence, the result is the bursting of the stock market bubble and a sharp decrease in prices.

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A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $526 and B for $53

MrMuchimi

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

6 0

3 years ago

Record journal entries for the following transactions. (a) On December 1, $18,000 was received for a service contract to be perf

Aliun [14]

Answer:

See explanation section

Explanation:

(a) December 1 Cash Debit $18,000

Unearned revenue Credit $18,000

Note: The company received the money in advance for a contract to do during December to April. Therefore, they received cash while a liability increased due to receiving advance money.

(b) December 31 Unearned revenue Debit $3,600

Service revenue Credit $3,600

Note: As the company started performing, after the completion of 1st month, i.e., December 1 to December 31, the advance money started expiring because of providing services. Moreover, as the service is performed evenly for 5 months, the 1st month's revenue = $(18,000/5) = $3,600.

5 0

2 years ago

A company's Cash account shows an ending balance of $4,200. Reconciling items included a bookkeeper error of $50 (a $550 check r

hoa [83]

Answer:

Adjusted book balance will be $4258

Explanation:

We have given ending book balance = $4200

Error in recording = $50

Interest revenue = $33

And service charge = $25

We have to find the adjusted book balance

Adjusted book balance is given by

Adjusted book balance = Ending book balance + error in recording + interest revenue - service charge = $4200+$50+$33-$25=$4258

6 0

2 years ago

Your parents will retire in 26 years. They currently have $220,000 saved, and they think they will need $1,950,000 at retirement

Artyom0805 [142]

Answer:

Annual rate of interest is 9%

Explanation:

The annual rate of interest is computed using the excel formula of Rate as:

=Rate(nper,pmt,pv,fv,type)

where

nper is number of years which is 26 years

Pmt is monthly payment which is 0

pv is present value which is -$220,000

fv is future value which is $1,950,000

type is 0

So, putting the values above:

=Rate(26,0,-220000,1950000,0)

=9%

Therefore, the rate of interest is 9%

6 0

2 years ago

In a given amount of time John can produce either 40 pounds of vegetables or 10 pounds of chicken. In the same amount of time Ge

aleksandrvk [35]

Answer:

Ten pounds of chicken to trade for at least 40 pounds of vegetables but not more than 50 pounds of vegetables

Explanation:

Vegetables Chicken Trade Off Ratio

John 40 10 4:1 (40/10) or 1:0.25 (10/40)

George 25 5 5:1 (25/5) or 1:0.20 (5/25)

John has comparative advantage in Chicken and George has comparative advantage in Veggies because :

John's chicken opportunity cost, in veggies < George (4<5). George's veggies opportunity cost, in chicken < John (0.20<0.25).
George is more (5X) productive in veggies than chicken, than John (4X). John is less unproductive in chicken than veggies (1/4th), compared to George (1/5th).

So, John will sell Chicken to George & George will sell veggies to John. Gains from trade are when each get trade ratio better than their their own trade off ratio.

It implies: John gets >' 4 pounds veggies per chicken pound' and George gets > '0.20 pound chicken per veggie pound'.
Unitary method:- '1chicken : 4veggies' = '10chickens : 40veggies' and '0.20chicken : 1veggie' = '10chickens : 50 veggies' .

7 0

2 years ago