Answer: c. interest rate falls; investment rises
Explanation:
The Fed buying treasury securities from banks is an expansionary policy when the government wants to increase the money in circulation and increase economic growth.
When the Fed buys Treasury securities from banks, this will lead to availability of funds as prices will be pushed higher and there will be a reduction in the interest rate.
Since there is reduction in interest rate, investment will increase as investors will borrow from banks.
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Answer:
To calculate the amount of interest that Cecil was charged we can use the following formula:
interest charged = (APR / 365) x 30 days x adjusted balance
where:
Adjusted balance = previous balance – current payments = $340 - $150 = $190
interest charged = (19% / 365) x 30 x $190 = $2.97
Answer:
the difference in value between a country's imports and exports.
is an accounting of a country's international transactions for a particular time period.
Answer:
The correct answer is letter "B": Imports have grown faster than exports, and the United States has become a net importer.
Explanation:
International trade is not just a major engine of the U.S. economy, but for the global economy. The total trade share in terms of the global Gross Domestic Product was 25% in 1960 and it has raised to 56% in 2017. Though, imports have surpassed the level of exports, making America be a net importer. Main imports are in the form of raw materials for the production of different goods mainly vehicles, and clothing.
