Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.
However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.
Answer:
The inventory turnover ratio is 3.58 times
Explanation:
Inventory turnover ratio an efficiency ratio that indicates how many times a company sells and replaces its stock of goods during a particular period
Inventory turnover ratio is calculated by using following formula:
Inventory turnover ratio = Cost of Goods Sold/Average Inventory
In there:
Average Inventory = (Beginning inventory + Ending inventory)/2
In the company:
Average Inventory = ($53,000 + $43,000)/2 = $48,000
Inventory turnover = $172,000/$48,000 = 3.58 times
Answer:
The growth of the real GDP per capita was 7.18%
Explanation:
It is important to establish that:
Future Value = Present Value × ((1 + r)^t), given that <em>r</em> is the <em>interest rate</em> and <em>t</em> is the <em>time period</em>
Real GDP per worker increased from $40,000 to $320,000 in 30 years
Therefore, we have;
320000 = 40000*(1+r)^30
(1 + r)^30 = 8
1 + r = 8^1/30
1 + r = 1.0718
r = 0.0718 = 7.18%
Answer:
a. $0.09
b. $0
c. -$0.09
Explanation:
Real rate = Nominal rate - inflation rate
a. Real rate = 2% - 1%
= 1%
Change in real wage = 9 * 1% = $0.09
b. = 2% -2% = 0%
Change in real wage = 9 * 0% = 0
c. = 2% - 3%
= -1%
Change in real wage = 9 * -1% = -$0.09
Answer:
false
His purchase left GDP unchanged
Consumption of non durables would increase.
Also, net export would decrease.
these effects would cancel out
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
