All categories

2 years ago

Which of the following statements is true of inflation? Group of answer choices

Business

1 answer:

mezya [45]2 years ago

8 0

Answer:

c. It refers to an increase in the average level of prices.

Explanation:

Inflation refers to a constant increase in the average prices of goods and services in the economy over time. Inflation means consumers will pay more for a similar basket of goods and services than they did in a previous period. Economists use Inflation as a measure of the rate at which the general prices are rising.

A high rate of Inflation without a corresponding rise in incomes erodes the purchasing power of households and firms. The consumer price index CPI is the common index used to measure the inflation rate. Should the inflation rate increase at a very high rate, governments, through the central bank, applies monetary policies to regulate it.

You might be interested in

Becca and Bob own a car rental business. Becca contributes 75 percent of the capital but does only 20 percent of the work, while

ale4655 [162]

Answer: Limited liabilities and partnerships

Explanation:

Limited liabilities mean that the partners within the firm are only liable to pay off their debts with the amount they had invested as capital in the company. Partnership is an agreement between certain number of partners to share the profit and loss of the company. In this case since there is a 50/50 allocation of profits and there are only 2 partners therefore, this is a limited liability partnership.

4 0

2 years ago

Which of the following statements regarding supply chain customer service is most accurate?

IrinaVladis [17]

Answer:

d. Supply chains should consider the needs of consumers provided those needs are consistent with marketing strategies.

Explanation:

In order for supply chain customer service to be effective, it is necessary to focus on customer needs and these needs must be aligned with the company's marketing strategies.

In other words, each stage of the supply chain must operate in an integrated manner, so that each process is synergistic and so that the final consumer can receive the product at the right time, in the right quantity and in the right quality. Therefore, supply chain management will improve each step of the process, guaranteeing the quality of the processes, the reduction of time, the reduction of costs and waste and ensuring the continuous improvement of the process, which will make the product go through each channel effectively, generating value and strengthening the relationship between the company and the consumer.

5 0

3 years ago

An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is

Andrej [43]

Here's the complete question:

An insurance company is analyzing the following three bonds, each with five years to maturity, and is using duration as its measure of interest rate risk:

a. $10,000 par value, coupon rate = 8%, rb = 0.10

b. $10,000 par value, coupon rate = 10%, rb = 0.10

c. $10,000 par value, coupon rate = 12%, rb = 0.10

What is the duration of each of the three bonds?

a. Duration on 8% coupon bond = 4.28 years

Year 1 ,2,3,4,5

CFs 800,800,800,800,10800

DCFs 727.27, 661.2, 601.05, 546.41 6705.95

PV=9241.84

Duration = <DCFs/PV

(7271+661.22+601.053+546.414+6705.95*5)/9241.84

=39568.1/9241.84

=4.2814

b. Duration on 10% coupon bond = 4.17 yearsc.

c. Duration on 12% coupon bond = 4.07 years

7 0

3 years ago

Read 2 more answers

"a branding strategy in which a firm uses a different brand for each of its products is called ____ branding."

Aleksandr-060686 [28]

<span>A branding strategy in which a firm uses a different brand for each of its products is called individual branding. With the use of this strategy, products from the same company are given a unique identity and name. This is especially useful when companies offer a wide range of products that cater different price markets. </span>

8 0

3 years ago

Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $ 105 com

telo118 [61]

Answer:

$76,134.84

Explanation:

Data provided in the given question

Future value = $105,000

Fixed interest rate = 4.1%

Number of years = 8

The calculation of present value is given below:-

= Future value ÷ (1 + rate of return)^number of years

= $105,000 ÷ (1 + 4.1%)^8

= $105,000 ÷ 1.379132002

= $76,134.84

Therefore, we simply applied the present value formula.

6 0

3 years ago