Answer:
Option (a) is correct.
Explanation:
Given that,
Price index in the year 2004 = 110
Price index in the year 2005 = 120
Price index in the year 2006 = 125
Inflation rate refers to the rate at which the prices of goods increases from one year to the other.
Consumer price index indicates the inflation in a particular year.
Inflation between 2004 and 2005:
= (Price index in the year 2005 - Price index in the year 2004) ÷ Price index in the year 2004
= (120 - 110) ÷ 110
= 10 ÷ 110
= 0.0909 or 9.09%
Inflation between 2005 and 2006:
= (Price index in the year 2006 - Price index in the year 2005) ÷ Price index in the year 2005
= (125 - 120) ÷ 120
= 5 ÷ 120
= 0.0417 or 4.17%
Therefore, the inflation between 2004 and 2005 is higher than the inflation between 2005 and 2006.
Answer:
A. 4.3
B. 2.4
Explanation:
(a) Calculation to determine ratio of fixed assets to long-term liabilities
Using this formula
Ratio of fixed assets to long-term liabilities =Fixed assets (net)/Long-term liabilities
Let plug in the formula
Ratio of fixed assets to long-term liabilities= $860,000 /$200,000
Ratio of fixed assets to long-term liabilities=4.3
Therefore Ratio of fixed assets to long-term liabilities is 4.3
(b) Calculation to determine ratio of liabilities to stockholders' equity
Using this formula
Ratio of liabilities to stockholders' equity=Liabilities/Total stockholders’ equity
Let plug in the formula
Ratio of liabilities to stockholders' equity=$600,000 /$250,000
Ratio of liabilities to stockholders' equity=2.4
Therefore ratio of liabilities to stockholders' equity is 2.4
I would like the brainliest please
If the reserve ratio is 20% then the amount that a bank would keep in reserves after accepting the demand deposits is $2,000.
<h3>How much would the bank keep?</h3><h3 />
The reserve ratio refers to the percentage of deposits that banks have to keep as reserves in the Fed.
If this rate is 20%, the bank would therefore have to keep:
= 10,000 x 20%
= $2,000
In conclusion, the bank would keep $2,000.
Find out more on the reserve ratio at brainly.com/question/13758092.
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Answer:
Business transactions are denominated in foreign currencies.
Explanation:
Foreign exchange can be referred to as the exchange of one country's currency for another currency. The exchange of these currencies occurs in an exchange market known as forex market.
Foreign exchange risk is a financial risk in which changes in the exchange rate may result in the loss of investment value or huge financial breakdown.
The most effective approach to preventing foreign exchange risks is for organizations to make and receive all forms of payment in their own currency.
