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3 years ago

One of your customer accounts is a trust account. The trustee of the trust is inexperienced in investing.

Business

1 answer:

Alinara [238K]3 years ago

7 0

Answer:

A) The duty to diversify the trust portfolio to reduce risk

Explanation:

The Uniform Prudent Investor Act (UPIA) requires trustees to make investments following the Prudent Person Rule. This means that trustees should invest the trust funds as if the trustee was a prudent person investing his/her own assets.

The best way to comply with the prudent person rule is to invest in a diversified portfolio that reduces risk.

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Ased on the quantity theory of money, if velocity is constant, inflation is likely to occur when:

Slav-nsk [51]

Answer:

Option (B) is correct.

Explanation:

The quantity theory of money can be expressed in the form of an equation that is

M × V= P × GDP

where,

M = Money supply

V = Velocity of money

P = Price level

GDP = Gross domestic product

P × GDP is the nominal GDP, it is the amount of required for purchasing the total amount of output. All the transactions are depends upon the income level of the consumers at the full-employment level. So, if there is an increase in the money supply, this will results in higher prices which means that an increase in the money supply over the real gross domestic product would cause the inflation.

Increase in the money supply will increase the nominal GDP but real GDP remains the same. But if the growth rate of money supply is equal to the growth rate of real GDP then there will be no inflation and Real GDP remains constant at the full-employment level, hence, its level of volume doesn't increase if the there is an increase in the money supply.

Therefore, increased growth rate of money supply over the real GDP causes inflation.

4 0

4 years ago

32 percent and he holds the following assets for more than a year, which gains will be taxed at the lowest rate at the time of s

RUDIKE [14]

If an individual taxpayer's marginal tax rate is 32 percent and he holds the following assets for more than a year, which gains will be taxed at the lowest rate at the time of sale-----Gains from personal-use property.

What is meant by a marginal tax rate?

The marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned.

Tax rate

In a tax system, the tax rate is the ratio at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, and effective. These rates can also be presented using different definitions applied to a tax base: inclusive and exclusive

Learn more about marginal tax rate:

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8 0

2 years ago

coinstar total fixed cost of operating one self-serve kiosk is the cost of ______. coinstar variable cost of providing co

dangina [55]

Answer: d. the machine; the coffee beans, milk, and workers who provide maintenance services

Fixed costs make up most of the monthly expenses for Coinstar company. These costs include machines.

<span>Variable costs vary. These costs depend on how many cups of coffee are sold or how much milk and coffee beans are used for each drink. The number of workers who provide maintenance services is also considered variable costs that are sometimes hard to predict. </span>

8 0

3 years ago

A basic conclusion of Keynesian analysis is that:

kolbaska11 [484]

Answer:

Small macro disturbances can lead to much larger macro problems.

Explanation:

The Keynesian analysis depends entirely on demand. It is a simple analysis that shows that if a firm produces something and firm tries to price that product. it brings changes in gross demand directly and effects into converts GDP.

So we can say that even small disturbances can lead to big problems.

7 0

4 years ago

Required information E12-3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [Th

kompoz [17]

Answer:

Net income = $320

Net cash flow from Operating activity = $145

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $485

To Service revenue A/c $485

(Being sales service is provided for cash)

2. Salary expense A/c Dr $165

Outstanding salary expense A/c Dr $175

To Salary and wages payable A/c $340

(Being salary expense is recorded)

Salary and wages payable A/c $340

To Cash $340

(Being salary and wages are paid)

The net cash flow from operating activities would be

= Service revenue - salaries and wages payable

= $485 - $340

= $145

The net income would be

= Sales - salary expense

= $485 - $165

= $320

Cash flow from Operating activities under the indirect method

Net income $320

Less: Decrease in salary payable - $175

Net Cash flow from Operating activities $145

4 0

3 years ago