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motikmotik
3 years ago
14

Assume that the international Fisher effect (IFE) holds between the U.S. and the U.K. The U.S. inflation is expected to be 5%, w

hile British inflation is expected to be 3%. The interest rates offered on pounds are 7% and U.S. interest rates are 7%. What does this say about real interest rates expected by British investors?a. real interest rates expected by British investors are equal to the interest rates expected by U.S. investors.b. real interest rates expected by British investors are 2 percentage points lower than the real interest rates expected by U.S. investors.c. real interest rates expected by British investors are 2 percentage points above the real interest rates expected by U.S. investors.d. IFE doesn't hold in this case because the U.S. inflation is higher than the British inflation, but the interest rates offered in both countries are equal.
Business
1 answer:
Lesechka [4]3 years ago
6 0

Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.

Explanation:

The real interest rate is the market interest rate less the inflation rate.

The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.

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Ramone has recently started working at an accounting firm. To get him up and running quickly, the firm has paired him with an ex
const2013 [10]

Answer:

<h2>In this case,the correct answer would be option c. or mentoring.</h2>

Explanation:

In any organisation,learning and development through mentorship constitutes acquiring new skills,knowledge and experience through a close relationship or association with someone who is more professional,experienced and established in a particular area of work or expertise.Mentorship basically includes close observation of the work methods,learning through imitation,following certain instructions and guidance from the mentor,obtaining support on various tasks and activities,incorporating valuable advice and recommendations in various activities and functions and so forth.In this particular instance,the firm has paired the employee with an experienced accountant to accelerate his work speed and enhance work efficiency or productivity through proper guidance,support and training obtained from the experienced accountant.Therefore,the firm expects improved work efficiency,enhancement of work performance and increased work speed through mentorship learning.

8 0
3 years ago
A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash. A corporation issued 2,500 shares of no-par c
lapo4ka [179]

Answer:

Journal Entries Transaction

1.

Dr. Cash                                                                    $120,000

Cr. Common stock                                                   $100,000

Cr. Paid-in capital excess of par, Common stock  $20,000

2.

Dr. Company expenses                                                        $22,000

Cr. Common stock, $1 stated value                                     $2,500

Cr. Paid-in-capital excess of stated value common stock $19,500

3.

Dr. Company expenses                 $22,000

Cr. Common stock, no-par value  $22,000

4.

Dr. Cash                                                                   $53,250

Cr. Preferred stock, $25 par value                         $31,250

Cr. Paid-in capital excess of par preferred stock  $22,000

Explanation:

1. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000

Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000

2.The Excess of common stock and cash received will be recorded in the Paid in capital in excess of stated value, common Stock account.

Common stock = $1 x 2,500 = $2,500

Paid-in capital in excess of stated value, common stock = $22,000 - $2,500 = $19,500

4. The Excess of common stock and cash received will be recorded in the Paid in capital in excess of par value, common Stock account.

Preferred Stock, $25 Par Value = 1,250 shares × $25 per share = $31,250

Paid in capital in excess of par value, preferred Stock = $53,250 – $31,250 = $22,000

6 0
3 years ago
Which of the following is true about goods and services?
Angelina_Jolie [31]
U need to provide the options we can pick from please
3 0
2 years ago
Dribbling in field hockey is when you.
Talja [164]

Answer:

Dribbling is a technique used in field hockey to move the ball forward using small touches with a hockey stick.

3 0
2 years ago
The West European buyers who purchase and resell Entrée Specialités’ food products in their home countries are in the _____ busi
defon

Answer:

The correct answer is letter "A": importing.

Explanation:

Importing activities involve businesses or individuals purchasing goods from manufacturers abroad with the purpose of reselling those goods or for personal use. Importing goods imply paying tariffs on those products as a way to protect national businesses.

5 0
3 years ago
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