Base on my research this type of argument is baseless but it depends on the 100% free enterprise market system. With this system, the government doesn't have regulatory powers to protect the interest of the consumers from the financial institutions. In a situation that without the interest rate modulation, the rate charged on loans could be 40% while the rate paid on savings could be 1%. If this happens the financial institutions will not have to pay FDIC insurance to ensure the solvency of the overall system.
Answer:
$360
Explanation:
Interest Expense associated with the loan is the only operating cash flow. We need to calculate the interest expense first
As the note is issued on August 1, year 1, only 5 months has been passed on December 31, year 1, So we calculate the interest expense for only 5 months.
Interest Expense = Value of Note x Stated Interest rate x 5/12 = $10,800 x 8% x 5/12 = $360
It is assumed that the interest is paid on December 31, year 1.
Answer:
<em>Employee stock ownership plan</em>
Explanation:
An employee stock ownership plan (ESOP) is <em>a retirement plan wherein the employer contributes its shares (or funds to purchase its stock) to the fund for the advantage of the employees of the company.</em>
The company maintains an account for every employee who participates in the program.
Over time stock shares accumulate before an employee is eligible to them.
With an ESOP, while still working with the company, you never purchase or keep the stock directly.
If an employee is fired, decides to retire, is disabled, or dies, the company must transfer the stock shares in the account of the employee.
In 2003 the presidents of the African countries of Mali and Burkina Faso <span>requested that rich countries apply free trade rules to those products where poor countries have a proven competitive advantage.</span><span>
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