All categories

3 years ago

The impact of inflation places ______________ and risk in the savings and borrowing relationships.

Business

1 answer:

max2010maxim [7]3 years ago

3 0

Answer:

The correct answer is the option C: uncertainty (the possibility that benefits may be less than expected).

Explanation:

To begin with, the concept of <em>inflation</em> refers to the sustained increase in the general price level of goods and services produced inside an economy and therefore consequently a reduction in the purchasing power per unit of money.

Secondly, it is understandable that the inflation causes that the uncertainess and riskness both take places in the saving and borrowing relationships due to the fact that the price that products and services will have in the future are not determinated and will probably increase in an unexpected way and therefore causing that benefits may be less than expected as well too.

You might be interested in

Which of the following statements is true? Group of answer choices If current Real GDP is greater than Natural Real GDP, the eco

Archy [21]

Answer: Wages are flexible if the economy is self-regulating.

Explanation:

Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.

For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.

For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.

4 0

3 years ago

In the decision-making process, after you have chosen the right solution, what is the next step? A. Act on your decision. B. Ref

krok68 [10]

I’m not pretty sure about this answer but in my opinion it’s B

4 0

4 years ago

Read 2 more answers

Lee lives in a nation that has a worldview that values subordination of the individual to the goals of the group. Lee's country

Nikitich [7]

Lee lives in a nation that has a worldview that values subordination of the individual to the goals of the group. Lee's country also follows the principle that people should be judged by their contribution to the group. Lee's country is collectivism.

<h3><u>Explanation:</u></h3>

The principle that gives importance and priority to the group rather than the individuals is called as collectivism. It gives importance to the group for instance a family rather an individual in that family. For instance consider the activity of a child who has been brought up in a collectivist society.

He will have the tendency to take care of the parents who are older and when they are not feeling well instead of taking care of themselves. In the given example, the country in which LEE lives is giving priority to the group and thus Lee's country is collectivism.

6 0

3 years ago

Read 2 more answers

A company has an unbiased forecast for its demand. what does that mean?

andrezito [222]

Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.

8 0

2 years ago

If you hold a $100 U.S. Treasury Bill, this means: (Select all that apply) Helpful Hint: There are 2 correct answers. The U.S. g

egoroff_w [7]

The U.S. government owes you $100.

Option 1 is correct .

Treasury Bills:

Treasury bills, or T-bills, have the shortest terms of all and are issued with maturity dates of four, eight, 13, 26, and 52 weeks.

Treasury Bill Characteristics:

Unlike Treasury bonds and notes, T-bills do not pay periodic interest payments to investors. Instead, Treasury bills are auctioned off to investors at a discount to their face value. The investor's return is the difference between the face value and the discount price paid at purchase.

How Do You Cash a Treasury Bond?

For Treasury bonds held with a bank or broker, consult the institution to redeem them.

For Treasury bonds in Treasury Direct (electronically), investors don't need to take any action since the bond will be cashed out at maturity and deposited into your account as long as you supply your bank information to Treasury Direct.

Treasury Bonds :

Treasury bonds, called T-bonds for short, are often referred to as long bonds because they take the longest to mature of the government-issued securities. Treasury bonds are offered to investors in terms of 20 and 30 years to maturity.

Learn more about Treasury bills :

brainly.com/question/14604863

#SPJ4

7 0

2 years ago