Answer:
A.overstate; substitution
Explanation:
Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.
when we say the CPI overstate inflation; it is because of:
Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability
) and;
Quality bias (over time, technological advances increase the life and usefulness of products).
The best way for Rick to handle this situation is to pledge them as a collateral so that it is a way of having them pledge in terms of arrangement in payment and that will benefit Rick and have the assurance that both methods used will still be their of advantage and would give them the upper hand or authority.
Answer:
D. Currency exchange risk
Explanation:
If you must deal with only domestic long term investments, then you should not worry about the currency exchange risk. The currency exchange risk is extremely relevant and important when you are dealing with investments in foreign countries. The currency exchange risk refers to risks associated with the US dollar depreciating or appreciating against other foreign currencies.
Answer:
The demand for uniforms Increase by shift to the right, it cause the price increase, therefore the supplies increase and move upward.
Explanation:
Answer:
1. The measures that City Bus Risk Manager should take in the risk management process are as follows
Figure out the risk context: In this case, we need to find out which market City Bus is catering to and what sort of service it can provide. The risk manager will take into account what the business requirements are, what are the technical criteria for delivering this service, such as the legal regulations that City Bus has to follow.
