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svet-max [94.6K]
3 years ago
13

The "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borro

wing in the based on the assumption floating rate market while their first choice is fixed.
a) true
b) false
Business
1 answer:
liq [111]3 years ago
5 0

Answer: Option A -- True

Explanation:

Comparative advantage can be defined as acompany which has higher credit rating pays less to raise funds. Therefore, the "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borrowing in the based on the assumption floating rate market while their first choice is fixed is TRUE

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Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer p
kicyunya [14]

Answer:

$6.20

Explanation:

The computation of the transaction fee is shown below:

= 1% of the total charge + $0.20

= 1% × $600 + $0.20

= $6 + $0.20

= $6.20

Simply we calculated the total charge value and then added the given fee which is mentioned in the question.

Here, total charge means the purchase value of the computer which is purchased by the customer

5 0
4 years ago
Rosewood Company made a loan of $8,600 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate
tatuchka [14]

Answer:

Year 1 = $387

Year 2 = $516

Explanation:

Loan has been granted on 1 April in Year 1 i.e. for a period from 1 April to 31 December = 9 months.

Interest for year 1 @6% = $8,600 X \frac{6}{100} X\frac{9}{12}

= $387

Interest for year 2 will be from 1 January to 31 December =

$8,600 X \frac{6}{100} X \frac{12}{12} = $516

Therefore interest revenue to be reported by Rosewood Company will be as follows

Year 1 = $387

Year 2 = $516

6 0
4 years ago
In a bottle-manufacturing company, employees were divided into two teams, hoping to increase production by fostering competition
dalvyx [7]

Answer: synergy

                             

Explanation:   Synergy refers to the idea that the total value and output of two groups of individuals should surpass the total of that same individual components.

Synergy is really a concept most frequently used within mergers and acquisitions (M&A). Synergy is most often a driving factor underneath a merger, or the possible financial gain gained through the combination of businesses.

Stockholders will profit if, owing to the synergistic impact of the transaction, the post-merger stock price of a corporation rises. The projected savings gained through the merger can be linked to various factors such as higher revenues, shared expertise, and innovation, or reduced costs.

6 0
4 years ago
Audit partners are periodically punished for holding a material investment in a client. this violates which aicpa code of conduc
kozerog [31]

Audit partners are periodically punished for holding a material investment in a client. This violates reasonably informed third party AICPA code of conduct rule.

Issuing the current year audit report when fees for the past year audit remain uncollected. The AICPA Code of Professional Conduct prohibits direct solicitation of clients by CPAs. A member who enters into or directs or knowingly permits another individual to enter into such an agreement for the performance of audit or other attest services would be considered in violation of the "Acts Discreditable Rule". A code of ethics and professional conduct outlines the ethical principles that govern decisions and behavior at a company or organization. They give general outlines of how employees should behave, as well as specific guidance for handling issues like harassment, safety, and conflicts of interest.

To know more about AICPA code here

brainly.com/question/27993494

#SPJ4

4 0
2 years ago
Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open market purchases or sales in res
worty [1.4K]

Answer:

a. In this case, its goes for open market sales operations, This is because to increase the value of federal funds, the Fed has to reduce the money supply

b. In this case, its goes for open market purchase operation. This is because an increase in the differential between the discount rate and federal funds rate would encourage the depositary institutions to borrow money from Fed, thereby increasing the supply of money

5 0
3 years ago
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