Helen’s Heating and Air (HHA) wants to encourage interest in their new smart refrigerators. They know that WidgetCo also sells smart refrigerators. HHA’s marketing manager creates the broad match keyword "refrigerator," and adds "WidgetCo" as a negative keyword. The two searches may prompt the ad are
- Smart refrigerator reviews
- Energy-efficient fridge
Explanation:
Since Helen’s Heating and Air has added “WidgetCo” as a negative keyword, the ad won’t be shown on any term that has that negative term anywhere in keyword.
When selecting negative keywords for search campaigns, we need to look for search terms that are similar to the used keywords, but they might show results in customers searching for a different product.
For a successful search campaigns, one should use broad match, phrase match, or exact match negative keywords.
Answer:
Factor that increases the supply of saving: High rate of return
Factor that increase the demand for saving: Confidence in return of business in the future, low rate of interest
Explanation:
Interest rates impacts the rate at which borroweres lend money which in turn determines the influx of savers (lenders). For example, if a business owner lacks the funds to raise capital for business (investment), the next route is usually to borrow money. Money is only borrowed when there is confidence in the business as most times, loans are repaid in the future. Also, if the interest rates are low, it's easier to pay back the loan but if the interest rates are high, this could affect the loan payback in due time (especially if the returns on the investment made or the profits made for the business is not enough to pay back the interest). This factor affects the demand for savings.
The demand for saving ultimately affects the supply of savings because with low demand of borrowing and a high supply of savings leads to a low interest rate, and a low interest rates doesn't appeal investors to save more money. This is simply the law of demand that states demand decreases when the rate of return is high. While the law of supply states that supply increases when the rate of return is high.
The effects of these factors on investment: rate of return changes the flow of influx of investors as one would only want to invest when the compund interest would be high irrespective of the permissible risk involved.
The confidence in an investment would also affect the rate at which one would demand for savings (loans) towards that investment.
Answer:
Statement is given below.
Explanation:
Prepare the necessary journal entries as shown below:
Date Accounts Title and Explanation Ref. Debit Credit
a Accounts Receivable $ 8:780
Sales Revenue $ 8380
(To record the sales made on account)
Sales Returns and Allowances $ 215
Provision for Sales Return and Allowances $ 215
vTo record the estimated allowance on sales
b Sales Returns and Allowances ($722-$215) $ 507
Provision for Sales Return and Allowances $ 215
Accounts Receivable $ 722
(To record the allowance granted towards sales
returns)
c No entry
(Since the cash is not received and hence no
adjustment needed)
Answer:
The discount rate on overnight loans is lowered.
Explanation:
The action that is most likely results in an increase in the money supply is (C) which is the discount rate on overnight loans is lowered.
Discount rates are used to determine today's value of money paid or received. In other words the discount rate for financial institutions is the rate of return that they will experience when they re-paid the loans that they granted to other institutions. The discount rate allows the central bank of a country to control money supply in circulation this is done by either lowering the interest rate or increasing it.
Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
