Explanation:
when a payment is made the entries recorded are debit prepaid expenses
Answer:
The answer is: C) The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.
Explanation:
The Consumer Price Index (CPI) weighs the average prices of a basket of consumer goods and services. So the higher the CPI, the more expensive it is to purchase goods or services in that place.
The purchasing power of someone living in Minneapolis and earning $42,500 is $245.66/CPI; for someone living in Anchorage and earning $67,000 is $296.46/CPI. The difference between them is $296.46/CPI minus $245.66/CPI equals $50.80/CPI.
The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.
Answer:
Nominal interest rate (i)= expected inflation rate (f) + real interest rate (r)
i= 5+r
Explanation:
The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates.
The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.
The Fisher Effect can be seen each time you go to the bank; the interest rate an investor has on a savings account is really the nominal interest rate.
Answer: A. other member banks and borrow money at the federal funds rate
Explanation: The first thing a Bank will do when it won't be able to meet the federal reserve Bank's requirement, is to borrow money at the federal funds rate from other Banks.
Federal Reserve Bank's reserve requirement or cash reserve ratio, it the minimum amount of reserve a commercial bank is expected to hold. It is practice by most Central Banks in the world but not all. A Bank that has excess of the minimum is said to have surplus reserve.
<h2>•→ <u>Gross Profit </u><u>Margin </u>•→</h2>
#→<u> </u><u>Gross margin</u> is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e. g. production or acquisition costs, not including indirect fixed costs like office expenses, rent, or administrative costs), then divided by the same selling price. "Gross margin" is often used interchangeably with "gross profit", however the terms are different: "gross profit" is technically an absolute monetary amount and "gross margin" is technically a percentage or ratio.
<h2>•→ <u>Net Profit </u><u>Margin </u>•→</h2>
#→<u> </u><u>The net profit margin</u>, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
<h3 /><h3>I Hope This Helps You... </h3>
