Answer:
O A real interest rate that is higher than current inflation is desirable,
Explanation:
The real rate is the nominal rate of interest after considering the inflation rate. The nominal rate is the interest rate quoted by financial institutions. It shows the percentage of return expected on a deposit or loan. The inflation rate communicates the rate at which prices are increasing in the economy.
The real rate is equivalent to the nominal minus the inflation rate. An ideal situation is when the real rate is higher than the inflation rate. In such a situation, the rate of money growth is higher than the price increases. It means the invested amount will increase in value. At the end of a period, the invested amounts will buy more goods and services than
Answer:
B. Personal credit if it is a personal loan
D. If the individual applies to start a business
Explanation:
Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.
Answer:
3200
Explanation:
The computation of the level of real output is given below;
We know that
Money supply × velocity of money = Price level × Real output
And,
Nominal output = Price level × real output.
Now
a) level of real output = money supply × velocity of money ÷ price level
= 800 × 8 ÷ 2
= $6400 ÷ 2
= 3200
A budget usually refers to a department's or a company's projected revenues, costs, or expenses. A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output. So the answer will be D.
Answer:
Explanation:
The journal entries are shown below:
a. Account receivable A/c Dr $27,720
To Sales revenue A/c $26,400
To Sales tax payable A/c $1,320 ($26,400 × 5%)
(Being the credit sales is recorded)
b. Cash A/c Dr $27,195
To Sales revenue A/c $25,900 ($27,195 × 100 ÷ 105)
To Sales tax payable A/c $1,295
(Being cash sales is recorded and the remaining balance is credited to the sales tax payable account)
