The statement "Both interest bearing and noninterest bearing notes bear interest." is true.
An interest-bearing note bears interest. The interest on a non-interest-bearing note is subtracted from the note's principal. So, the statement is true.
An interest-bearing note is a sum of money that a lender lends to a borrower, with interest accruing in line with the conditions of the contract.
A non-interest bearing note is a loan for which the borrower is not legally required "to pay the lender any interest" at all.
Both kinds of notes bear interest, hence the term "noninterest bearing" is misleading. Interest is deducted from a noninterest bearing note at the time the loan is made.
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Consider the wealth effect, interest rate effect, and international trade effect. Of these, the wealth effect is the most significant and the international effect is the least significant.
<h3>What is the wealth effect?</h3>
This is the theory that states that people spend more money on commodities as they experience an increase in their wages.
<h3>What is the international effect?</h3>
This is the theory that the given differences that exist in nominal interest rate of countries is useful for prediction of changes in interest rate.
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Answer:
$5,750,000
Explanation:
Given that,
Net working capital = $750,000
Current Liabilities = $2,000,000
Book value of the net fixed assets = $3,000,000
Net working capital = Current assets - Current Liabilities
Book value of the current assets:
= Net working capital + Current Liabilities
= $750,000 + $2,000,000
= $2,750,000
Book value of the firm's assets:
= Book value of the current assets + Book value of the net fixed assets
= $2,750,000 + $3,000,000
= $5,750,000
Answer:
$5,857; $1,105
Explanation:
Cash flows from investing activities:
= Proceeds from sale of property and equipment + Sale of investments - Purchase of property, plant, and equipment
= $6,594 + $134 - $871
= $5,857
Therefore, the net cash provided by the investing activities is $5,857.
Cash flows from Financing activities:
= Borrowings under line of credit (bank) + Proceeds from issuance of stock - Payments to reduce long-term debt - Dividends paid
= $1,417 + $11 - $46 - $277
= $1,105
Therefore, the net cash provided by the investing activities is $1,105.
Answer:
E: a debt of $10.7 trillion and a deficit of zero.
Explanation:
Deficits are usually financed by debt. Here the government has incurred an extra debt of $700 billion. The previous debt of $10 trillion may have been due to any reason and not necessarily deficit. However, the passage does not state if the extra debt is due to deficit or not. So it is safe to select option E.
Hence, the government has incurred a total debt of $10.7 trillion and a deficit of zero.
