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3 years ago

Overdraft protection means the bank will protect your funds from excessive taxation.

2 answers:

5 0

The correct answer is (a.) True. Overdraft protection means the bank will protect your funds from excessive taxation. This protection is most likely to be offered by small business since it helps them to gain additional income fees.

Bess [88]3 years ago

3 0

That statement is true.

When you sign for a overdraft protection, the Bank would send many notification on your account to prevent you from using more money for consumption that you actually have in the bank.

This would help you to prevent excessive taxation because the amount of money used for personal consumption is not eligible for tax deduction.

You might be interested in

Areas set up to attract foreign investments by allowing the iportation of raw and intermediate materials without paying tariffs

otez555 [7]

Areas set up to attract foreign investments by allowing the importation of raw and intermediate materials without paying tariffs are called "duty-free zones".

4 0

3 years ago

Active monetary policy

irinina [24]

Answer:

Active monetary policy

d. is the strategic use of monetary policy to counteract macroeconomic expansions and contractions.

Explanation:

The option a is not correct as when central banks purposefully choose to only stabilize money and prices levels through monetary policy, then this policy is called as passive monetary policy.
The option b is not correct as it has effect on the economy but not in long run.
The option c is not correct as when central banks take orders from the ruling party on how to conduct monetary policy then it is not an active monetary policy.
The option e is not correct as when central bank use only fiscal policy to try to influence the economy can or can't be active monetary policy.
The option d is correct as the active monetary policy is used to counter the changing economic conditions.

4 0

3 years ago

The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increase

Sonbull [250]

Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

7 0

3 years ago

A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT: a. avoid

Helen [10]

Answer:

B. Improved adjustment to technological changes.

Explanation:

Vertical Integration: It is a strategy to gain competitive advantage by taking complete control over a few stages of production or distribution. The company implements vertical integration to reduce the cost of production, reduce dependence on others, improve the quality of the product, etc.

In the given case, the company pursuing vertical integration can gain market power over its competitors through improved quality, reduction in cost, and reduction in operation cost, however, it does not improve adjustment to technological changes.

3 0

3 years ago

Sink and Tap Inc. is looking at a 4-year project for making taps. Initial investment in equipment will be $754,000. Each unit wi

podryga [215]

Answer:

the present value break-even point in units per yea is 4680 units. the option (d) is correct

Explanation:

Solution

Given that:

The initial cash flow = $754,000

The project life is = four years

Thus,

Contribution = sales - variable costs

So,

Sales = quantity * the price

Let the Quantity be Y

$230 Y - $102.40 Y

=127.60 Y

Now,

The operating income = Contribution -fixed costs

which is,

127. 60 Y- (Other depreciation or decrease + decrease)

127. 60 Y- ( $333,000 + ($754,000/4))

= 127. 60 Y- ( $333,000 + $188,500)

Thus,

127. 60 Y - $521, 500

Now,

Tax rate at 21% on operating income is =26.796 Y - 109. 515

The profit after tax = operating income - tax

(127. 60 Y - $521, 500) -(26.796 Y - 109. 515)

= 100.804 Y - 411, 985

Additional depreciation = $188, 500

The operating cash inflow per year = 100.804 Y - 411, 985 + $188, 500

Thus,

The PVAF for 12 years , 4% = 3.037349

PV of operational cash inflow = 306.18 Y - 678, 802.02

However,

For the break even point: the initaila cash flow = The PV of functioning or operational cash inflow

So,

306.18 Y - 678, 802.02 =$ 754,400

306.18 Y = 1, 432, 802.02

Y = 4680 Units

6 0

3 years ago