1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pav-90 [236]
3 years ago
15

According to liquidity preference theory, if the quantity of money demanded is greater than the quantity supplied, then the inte

rest rate will
a. increase and the quantity of money demanded will decrease.
b. increase and the quantity of money demanded will increase.
c. decrease and the quantity of money demanded will decrease.
d. decrease and the quantity of money demanded will increase.
Business
1 answer:
melisa1 [442]3 years ago
4 0

Answer:

The correct answer is option A.

Explanation:

Liquidity preference theory was given by J.M Keynes. He states that money is demanded by people because it holds certain liquidity.

There are various motives involved for which people prefer liquidity. These motive are precautionary, transactionary and speculative motives respectively.

When the demand for money is more than supply, it means there is excessive demand. This excess demand will lead to increase in the interest level. At higher interest, the quantity of money demanded will fall.

You might be interested in
If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market
ahrayia [7]

Answer:

14.57%

Explanation:

A stock has a beta of 1.4

The expected return is 18%

The risk free rate is 6%

Therefore, the expected return on the market portfolio can be calculated as follows

18%= 6% + 1.4(market return-6%)

18%= 6% + 1.4market return - 8.4

18%= 6-8.4 + 1.4market return

18%= -2.4% + 1.4market return

18%+2.4%= 1.4market return

20.4= 1.4market return

market return= 20.4/1.4

= 14.57%

Hence the expected return on the market portfolio is 14.57%

4 0
3 years ago
All of the following assets will be included as intangible assets on the balance sheet exceptA. patents.B. copyrights.C. investm
Damm [24]

Answer:

investments.

Explanation:

Intangible assets are assets that cannot be physically seen. Example of intangible assets are parents, copyrights, goodwill, trademark etc

I hope my answer helps you

4 0
3 years ago
On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by
vova2212 [387]

Answer:

Explanation:

a)

Date Account Titles and Explanation Debit Credit

January 1, 2020 Land $360,000.00

Discount on notes payable $246,621.00

Notes payable $ 606,621.00

(To record purchase of land by issuing note payable)

PV of $606,621 discounted at 11% =606,621/(1.11)^5 = $ 360,000

2.

Computation of the discount on notes payable:

Maturity value $560,000

Present value of $560,000 due in 8 years at 11% = $560,000 * 0.43393 = $ 243,000

Present value of $39,200 payable annually for 8 years at 11% annually—$39,200 * 5.14612 = $ 201,728

Present value of the note = $ 243,000 + $ 201,728 = $ 444,728

Discount = $ 560,000 - $ 444,728 = $ 115,272

Date Account Titles and Explanation Debit Credit

January 1, 2020 Equipment $444,728.00

Discount on notes payable $115,272.00

Notes payable $ 560,000.00

(To record purchase of equipment by issuing note payable)

b)

1.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($ 360,000*11%) $39,600

Discount on notes payable $39,600

(To record the interest expense recorded and discount amortized)

2.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($444,728 * 11%) $48,920

Discount on notes payable $9,720

Interest Payable ( $ 560,000 * 7%) $39,200

(To record the interest expense recorded)

7 0
3 years ago
Provide an example of how an international company (such as Unilever or Mondelez International) changes its distribution channel
mezya [45]

Answer:

The examples of the given circumstances are provided below.

Explanation:

<u>Interpretations of how the international corporation (including such Unilever) was indeed changing the distribution platform</u>:

  • Unilever transforms this same distribution network to potential consumers as well as ensures immediate access includes a multitude of shareholder but instead everyday items.
  • The corporation has a more adaptable distribution network which virtually guarantees direct services to consumers worldwide thru all the different retailers, shopping centers as well as other chain stores.

<u>Interpretations of how and why the International Corporation is changing targeted advertising</u>:

  • Unilever Advertisements have been created on the basis of the cultural values including its Country-Advertising Notifications besides Unilever impacts negatively on either the values of the people throughout order to determine if the project is uniquely equipped to address the requirements of the cultural identity as well as to raise the effectiveness of purchases.
5 0
3 years ago
Theodore Enterprises had the following pretax income (loss) over its first three years of operations: 2016 $ 500,000 2017 (900,0
m_a_m_a [10]

Answer:

$450,000

Explanation:

Theodore Enterprises had the following pretax income (loss) over its first three years of operations:

2016 $ 500,000

2017 (900,000 )

2018 1,500,000

For each year there were no deferred income taxes and the tax rate was 30%. In its 2017 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2017.

Therefore Theodore's income tax expense for 2018 is 30% x 1,500,000  = $450,000

Loss carry back is when a business elects to net off losses against a previous year's return as opposed to loss carry forward which is the future years' return.

4 0
3 years ago
Read 2 more answers
Other questions:
  • The marginal benefit curve is:
    14·1 answer
  • The major difference between the producer price index and the consumer price index is that the produce price index _____ and the
    8·1 answer
  • Economic profits and lossesa. equalize the distribution of income in the long run. b. are essential to the reallocation of resou
    8·1 answer
  • Scenario C At DoubleTalk, Inc., Joe, a supervisor, pushes his employees' performance by constantly checking their work and threa
    8·1 answer
  • by which quantity would you divide the total cost in order to calculate a business’s average total cost?
    14·1 answer
  • In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and can legally require that the buyer take
    5·1 answer
  • A company has a chief executive officer and a limited corporate staff, with line managers in dominant organizational areas, such
    10·1 answer
  • On May 7, Hatch Company purchased on account 700 units of raw materials at $19 per unit. During May, raw materials were requisit
    8·1 answer
  • As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y sub
    8·1 answer
  • After an extensive advertising campaign, the manager of a company wants to estimate the proportion of potential customers that r
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!