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gladu [14]
3 years ago
12

What are the two views on why asset prices fluctuate so much that they lead to financial crises and bank​ failures?

Business
1 answer:
tester [92]3 years ago
6 0

In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.

Explanation:

As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.

This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.

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LO 1.1Carlita believes an important part of the planning process for managers is being sure to position the company to achieve i
irga5000 [103]

Answer:

<u>yes</u>, she is correct.

Explanation:

Company positioning can be defined as the place a company occupies in the market, as is its identity in relation to competitors and consumers. It is correct to say that strong brand positioning ensures several strategic and financial advantages for a company, for example, increases the perception and recognition of consumers, creating an image of value and reliability in the market.

Therefore a well positioned company depends on the organization of structured processes, which will promote subsidies for the correct decision making, which is an aggregate part and integrated in the area of ​​managerial accounting.

There are several tools in managerial accounting that help in the decision making process, because there is the use of appropriate reports at each stage of the organizational process, which gives the possibility to plan, control and evaluate. Accounting tools allow you to analyze a past period and correctly project present decisions by measuring the performance of financial decisions and their impacts on the business. Managerial accounting also offers the analysis of standards, relevant to ascertain and solve problems encountered in a process.

6 0
3 years ago
Charlie's brother, Alexander, also consumes apples (A) and bananas (B). Alexander's utility function happens to be U(A, B) = 5A
Andrei [34K]

Solution :

U(A, B) = 5A + 2B

a). Bundles (40, 5) = U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.

So, U(40, 5) = U(x, 2)

   (40 x 5) + (2 x 5) = 50x + (2 x 2)

     210 - 4  = 5x

       x = 41.2

So Alexander has 40 apples and 5 bananas. The indifference curve though (40, 5) also include bundle.

Therefore, (41.2, 2)

b). $MRS_{BA} = \frac{MU_B}{MU_A}$

                  $=\frac{\delta U/\delta B}{\delta U/\delta A}$

                  $=\frac{2}{5}$

                 = 0.4

So Alexander  has 40 apples and 5 bananas with this bundle. Alexander would like to give up 0.4 unit apples for a banana.

7 0
3 years ago
Give a real life example of mitigating a risk, avoiding a risk, transferring a risk and retaining a risk.
nikitadnepr [17]

Explanation:

Let us understand the terms with examples:

Avoiding a risk: A risk which is pre-identified and which would create huge loss for the ongoing task can be avoided.

For example:

If there is a deadline for a project and there are only few more days to complete, then planning a training program on soft skill will be a riskier one. So training program can be planned sometimes later, thus avoiding risk.

Transferring a risk: Normally this will be mentioned in the project contract. If there is an issue and the employees of the company are already filled with work, then the issue can be outsourced so now the risk is transferred.

Retaining a risk: You can retain the risk if the impact is negligible. Absence of a software developer for 10 days. So the Project manager need not worry about finding an alternate person for that 10 days alone, which might lead to less understanding of flow and may raise more errors if multiple resource work on the content.

Mitigating a risk: The risk will be avoided by taking some preventive measures. For example, if a smart board needs to be sold, a sales team cannot give a good demo hence the sale of product percentage is less. So to avoid this, a training can be arranged to sales team so that it will boost up sales. Others who were absent on training, ll sale less but the impact is minimum.

5 0
3 years ago
Chelsa manufacturing co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable
dem82 [27]
Calculate variable cost per unit

40000/5000=8 per unit

And
5000/5000=1 per unit

Variable cost per unit=8+1=9 per unit

So variable cost at 8000 units is
8,000×9=72,000

Your answer is
d. variable costs of $72,000, and $23,000 of fixed costs
4 0
3 years ago
Drag each tile to the correct box.
Fittoniya [83]

Answer:

Convenience checks: consumers use these to reduce their available credit in exchange for cash.

Installment loan: consumers make recurring fixed payments.

Introductory interest free: consumers can enjoy a set period of zero interest credit.

Revolving credit: consumers borrow an amount that they don’t have to pay off by a specific date.

Explanation:

In Business, credit can be defined as money or a loan facility agreed upon by a lender and a borrower, who is obligated to repay the lender at a specified date mostly with interest depending on the terms and conditions.

Credit generally decreases assets or increases liabilities and equity on the balance sheet of an organization.

3 0
3 years ago
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