Answer:
Nominal Interest rate
Explanation:
According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money. So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.
Answer:
The firm's cash flow to creditors during 2018 was –$85,000
Explanation:
The firms cash flow to creditors would be calculating by substracting the interest expense of the firm to the long-term debt taken during the period.
Cash flow to creditors = Interest expense – Net new LTD borrowing
Cash flow to creditors = Interest expense – (LTDend – LTDbeg)
Cash flow to creditors = $255,000 – ($2,210,000 – 1,870,000)
Cash flow to creditors = –$85,000
Answer:
That is correct this is a liability
Explanation:
That is correct this is a liability. That is because a liability refers to being legally responsible for something. In this scenario, since they paid you $200 for hair coloring then you owe the client that. Meaning that you are legally responsible to provide hair coloring services to the client and until you do that you are liable.
Answer:
$49,000
Explanation:
Missing<em>"Cash Event => Cash Paid for Salaries Second Number => _____ __?___, ______ ______ ______"</em>
<em />
Cash paid for salaries (using direct method)
Particulars Amount
Opening salaries payable $5,000
Add: Salaries expense for the current year $57,000
Less: Closing salaries payable <u>$13,000</u>
Cash paid for salaries during current year <u>$49,000</u>
A news article details the destruction of a recent earthquake. Readers of the article likely to do as result are Overestimate their risk of earthquakes. Thus option A is correct.
<h3>What is Earthquake?</h3>
Earthquakes is referring to a kind of natural disaters which occurs due to the movement of tectonic plates. when these tectonic plates move and collapse with one another results in an earthquake.
When a news article shows destruction related to earthquakes people will most likely analyze their risk from earthquakes and evaluate whether they are safe from them or not.
Therefore, option A is appropriate.
Learn more about Earthquakes, here:
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