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3 years ago

What is an example of an inflation risk?

Business

2 answers:

lbvjy [14]3 years ago

6 0

Answer:

A person’s income may drop

Explanation:

Inflation is the continuous and widespread increase in prices over a given period of time. When inflation occurs, people's salaries must be corrected together. For example, if inflation is 5% per year, wages must increase by at least 5%, otherwise the person's purchasing power will be reduced, which means that the person's income has decreased. This is because with the same salary, the person can buy a smaller amount of inflated goods and services. For example, if with my salary I buy 10 fruits and an inflation of 10% occurs, but my salary does not increase, I will be able to buy only 9 fruits and not 10 more.

ale4655 [162]3 years ago

5 0

The price of an item can rise or fall

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How can residential interior and architectural design contribute towards housing evolution(s)?

Ne4ueva [31]

Answer: Residential interior and architectural design contribute towards housing evolution by building and designing the houses.

Explanation:

Architectures are one who works on the structure of the house. They decide what should be the structure of the house. But the residential interior designers, on the other hand, look after the interior of the house. They decorate the house from inside.

Both of them play a very important role in housing evolution. Houses have developed a lot due to the work done by interiors and architectures. Today a large number of houses are seen in urban areas with all the modern amenities.

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3 years ago

Which of the following are assumptions of the simple CAPM model? I. Individual trades of investors do not affect a stock's price

lisabon 2012 [21]

Answer:

I, II, and III are all correct and part of this model

Explanation:

The CAPM model or Capital Asset Pricing Model indicates the relationship between the amount of risk and the expected profit for a certain investment. This model holds many assumptions, which from the ones provided we can say that assumptions I, II, and III are all correct and part of this model. The only assumption that is not correct is IV, since the level of risk aversion that each investor has depends on how much they know about their investment.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0

3 years ago

Turner Corporation acquired two inventory items at a lump-sum cost of $100,000. The acquisition included 3,000 units of product

inessss [21]

Answer:

The amount of gross profit Turner Corporation should recognize is $20,000.

Explanation:

The following are given in the question:

Lump-sum cost = $100,000

Units of LF acquired = 3,000

Units of 1B acquired = 7,000

LF price per unit = $30

1B price per unit = $10

Unit of LF sold = 1,000

Therefore, we have:

Share of LF in the Lump-sum cost = (Units of LF acquired / (Units of LF acquired + Units of 1B acquired)) * Lump-sum cost = (3,000 / (3,000 + 7,000)) * $100,000 = $30,000

LF cost per unit = Share of LF in the Lump-sum cost / Units of LF acquired = $30,000 / 3,000 = $10

LF total revenue = Unit of LF sold * LF price per unit = 1,000 * $30 = $30,000

LF cost of goods sold = Unit of LF sold * LF cost per unit = 1,000 * $10 = $10,000

LF gross profit = LF total revenue - LF cost of goods sold = $30,000 - $10,000 = $20,000

Therefore, the amount of gross profit Turner Corporation should recognize is $20,000.

3 0

3 years ago

In one paragraph, list and describe the three major effects of inflation on the economy

Bess [88]

Historically, for domestic investors, a high inflation rate has been considered anything over the 3% to 4% annual range with the 3% to 4% figure considered benign. This rate, which would be a godsend for most of the world, is caused by numerous things, some of which have to do with certain monetary and structural advantages in the U.S. economy that may not last indefinitely. That said, for the past decade, the country has experienced a historically low interest rate environment due to unprecedented intervention in the monetary system by the Federal Reserve and lawmakers as part of the efforts to stave off collapse of the global economic system back between 2007 and 2009 when the real estate bubble peaked and imploded, dragging down all sorts of asset classes with it, including the stock market.

5 0

3 years ago

What are the main components of money in the United States today? The main components of money in the United States today are

Komok [63]

Answer:

The answer is option B.

Explanation:

The main components of money in the United States today are the physical cash in the form of currency, and also the deposits that are made in the form of savings in various banks and other depository institutions. This is to take into account that, the asset that can be converted into cash is not considered under these components of money in the US.

7 0

3 years ago