All categories

2 years ago

Which of the following situations would be most likely to lead to an increase in interest rates in the economy?

Business

1 answer:

sveticcg [70]2 years ago

3 0

Answer:

The correct answer is E

Explanation:

The interest rate is defined as the rate of percentage which is charged on the loan or which is paid on the savings. It is the reward for lending as well as the cost of borrowing.

When the interest rate rises or increases, then everyone tend to borrow more amount of money and the high demand of the credit states that the people are willing to pay more for the same.

So, the situation which would increase the interest rate in the economy is when the corporations set up for the expansion plans and increase the demand for the capital.

You might be interested in

Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternati

FromTheMoon [43]

Answer:

It is more convenient to continue processing.

Explanation:

Giving the following information:

Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed for $12,000 and converted into 12,000 units of Exceptional and 6,000 units of Premium. The selling price of Exceptional and Premium are $30 and $20, respectively.

We don't have the information regarding the costs of processing further. Therefore, we will base our analysis in sales.

Sell now= 22*20,000= $440,000

Continue processing= 12,000*30 + 6,000*20= $480,000

It is more convenient to continue processing.

3 0

3 years ago

In 2019, Bonita Industries sold 3000 units at $1000 each. Variable expenses were $700 per unit, and fixed expenses were $780000.

solniwko [45]

Answer:

Bonita’s break-even point in units for 2020 is 812.50 units.

Explanation:

Break-even point in units refers to the number of units of commodity that must sold by a company in order for its cost to be equal to revenue and therefore make no profit but also no loss. This can be determined for Bonita Industries as follows:

Selling price in 2020 = Selling price in 2019 * (100% - Percentage cut in selling price) = $1,000 * (100% - 40%) = $1,000 * 96% = $960

Variable expenses = $700

Fixed expenses = $780,000

Contribution per unit = Selling price in 2020 - Variable expenses = $960 - $700 = $260

Bonita’s break-even point in units for 2020 = Fixed expenses / Contribution per unit = $780,000 / $960 = 812.50 units

Therefore, Bonita’s break-even point in units for 2020 is 812.50 units.

8 0

3 years ago

1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return

inessss [21]

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

6 0

2 years ago

Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash, creating mobile money use that, on

Tasya [4]

Answer: True

Explanation:

Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.

This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.

7 0

3 years ago

Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor

Lorico [155]

Answer:

Total variable overhead variance is express = 2,200

Explanation:

given data

overhead rate = $6 per direct labor hour

actual direct labor hours = 6,000

actual variable overhead costs = $37,000

product manufactured = 2,900 units

to find out

total variable overhead variance

solution

we find here standard variable overhead that is

standard variable overhead = 2900 unit × $6 × 2 DL hours

standard variable overhead = $34,800

and

Total variable overhead variance is express as

Total variable overhead variance is express = actual variable overhead - standard variable overhead

Total variable overhead variance is express = 37,000 - 34,800

Total variable overhead variance is express = 2,200

7 0

3 years ago