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Ronch [10]
3 years ago
14

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

Business
1 answer:
melomori [17]3 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 machine with a cost of $164,000, accumulated depreciation of $102,000, and current year depreciation expense of $25,500 is sol
Gre4nikov [31]

Answer:

$53,600

Explanation:

The computation of the cash flow from investing activities is shown below:

Cash flow from investing activities

Sale value of machinery $53,600

Net cash flow from investing activities $53,600

The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported

4 0
3 years ago
Which of the following statements about recessions is false?
drek231 [11]
The correct answer is choice D- 

It not true that a <span>recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but </span>a recession generally<span> does </span>not<span> last </span>longer than<span> a year. Beyond a year, the situation is much severe, and is called an economic depression.</span>
7 0
2 years ago
Read 2 more answers
Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the D
Vitek1552 [10]

Answer:

Shopping and convenience

Explanation:

Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the Dockers shorts. While heading to the checkout stand, he spotted earphones hanging on the endcap of the electronics area. Remembering he needed new earbuds for his iPod, he grabbed a set and paid for it all at the checkout counter. What types of product categories did Pat experience in this shopping trip

Pat experience shopping and convenience product categories; the dockers shorts is the shopping product while the ear phone is the convenience product.

Shopping products are types of products categories in which a consumer takes his or her time to deliberate, research, compared on a product before they decided to buy the said product while convenience product is one that required no deliberation, the are usually routine products.

5 0
3 years ago
John Hernandez is 24 years old and has saved enough money to fund an adequate emergency fund. In addition, he has saved $5,600 t
poizon [28]

Answer:

C. Growth

Explanation:

Starting investment early is something that is always encouraged and that is the case of John Hernadez here. By starting early, before he retires, he'd have been able to grow is investment portfolio substantially and even be a millionaire by the time of his retirement. Growth is the most important factor for John, that's why is he's starting his investment early. With the time given for growth, investment value may increase in value and it allows time for appreciation of stock price.

4 0
3 years ago
Read 2 more answers
Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred
masya89 [10]

Answer:

The answer is given below;

Explanation:

 Preference stocks  950*50    Dr.$47,500

 Paid in capital in excess of par-preference shares  Dr.$  13,300                                  

 (64-50)*950

  Common Stocks  1,900*10        Cr.$19,000

  Paid in capital in excess of par-common stocks    Cr.$41,800

   (64*950)-(1900*10)                                        

8 0
3 years ago
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