Answer:
correct option is A) Adverse selection
Explanation:
to find out
the economic problem in the story
A) Adverse selection B) Signaling C) Moral hazard D) Screening
solution
- Diversifun boat insurance so here in economic problem story is Adverse selection
- adverse selection is the tendency of those in the risky job or the high risk lifestyles to get life insurance
- It is the situation where sellers has information that buyers do not about some aspect of product quality ( and the vice versa)
so here correct option is A) Adverse selection
Answer:
b. record transactions for business
Explanation:
A journal is a detailed account that records all the financial transactions of a business, to be used for the future reconciling of accounts and the transfer of information to other official accounting records, such as the general ledger.
<u>Explanation:</u>
The main difference between <em>monopoly </em>and <em>oligopoly </em>is in the number of firms under consideration.
In Monopoly, the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.
While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.
Answer:
$131,000
Explanation:
The computation of the ending balance of stockholder equity is shown below:
= Beginning balance of stockholder equity + net income - dividend paid + additional common stock issued
= $94,000 + $24,000 - $9,000 + $22,000
= $131,000
Therefore, the ending balance of stockholder equity is $131,000
We simply added the net income and the additional common stock issued and deduct the dividend paid to the beginning balance of stockholder equity so that the ending balance could come
Answer:
The current yield on this bond is 7.21 %.
Explanation:
The yield of the bond, YTM can be determined using a financial calculator as follows :
Pv = $1,000 - $73.75 = - $926.25
Pmt = $54
n = 5
p/yr = 1
Fv = $1,000
YTM = ?
Using a Financial Calculator, the yield of the bond, YTM is 7.2088 or 7.21 %
