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3 years ago

What is most likely to happen if the Fed prints too much currency?

Business

1 answer:

Butoxors [25]3 years ago

8 0

Depreciation of money would occur, meaning that the cost of an item would increase.

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a. If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 15%, what is the expected ret

mixer [17]

Answer: 2%

Explanation:

The Capital Asset Pricing Model (CAPM) can be used to calculate expected value as thus;

= Risk free rate + beta (Market return - risk free rate)

= 5% + (-0.3) (15% - 5%)

= 5% - 3%

= 2%

7 0

3 years ago

According to the Fisher equation, if the expected inflation rate is less than the actual inflation rate, then the actual rate of

Svetlanka [38]

Answer:

D. higher than the equilibrium interest rate.

Explanation:

The Fisher equation at equilibrium ; i = r + τe helps you to answer this question whereby;

i = nominal interest rate

r = real interest rate

τe = expected inflation rate

If we re-write it beginning with real interest rate ; r = i - τe .

So, considering the above equation, if the actual inflation rate turns out to be lower than expected , we will have a lower τe and the difference (i - τe) will be bigger making the real interest rate higher than equilibrium.

5 0

3 years ago

Elize’s regular hourly wage rate is $20, and she receives an hourly rate of $30 for work in excess of 40 hours. During a January

saveliy_v [14]

Answer:

(a) Debit Wages expense for $950; Credit Federal income tax withholding for $94; and Credit Wages payable for $856

(b) Debit wages payable for $856; and Credit Cash for $856.

Explanation:

The entries will look as follows:

a) Prepare the journal entries to record Elize’s pay for the period

Date Account title Dr ($) Cr ($)

Jan 15 Wages expense (w.3) 950

Federal income tax withholding 94

Wages payable (w.4) 856

(To Elize’s pay for the period.)

(b) Prepare the journal entry to record the payment of Elize’s wages.

Date Account title Dr ($) Cr ($)

Jan 15 Wages payable (w.4) 856

Cash 856

(To record the payment of Elize’s wages.)

Workings:

Normal hours = 40

Number of hours worked = 45

Overtime hours = Number or hours worked - Normal hours = 45 - 40 = 5

Normal hourly wage rate = $20

Overtime hourly rate = $30

Federal income tax withholding = $94

w.1: Normal wage amount = Normal hours * Normal wage rate = 40 * $20 = $800

w.2: Overtime pay = Overtime hours * Overtime hourly rate = 5 * $30 = $150

w.3: Wages expense = Normal wage amount + Overtime pay = $800 + $150 = $950

w.4: Wages payable = Total wage amount - Federal income tax withholding = $950 - $94 = $856

3 0

3 years ago

Which activity is not allowed in a 3 compartment sink

ryzh [129]

Three compartment sinks are used commercially by hotels or restaurants.

Each compartment in the sink is used for separate purpose.

First compartment is used for Washing the dishes, second one is used to rinse the dishes and the third one is used to sanitize the washers' hands.

The activities that are not allowed in these compartment are washing of cleaning clothes, washing of meat or vegetables, hand washing, throwing of wastes etc

5 0

3 years ago

Read 2 more answers

Dawn's credit card has an APR of 15%, calculated on the previous monthly

vladimir1956 [14]

Explanation:

It can be tempting to pay the minimum amount due on your credit card bill, but it can be really expensive in the long run. Here's what happens if you only pay the minimum on your credit card.

4 0

3 years ago