Answer:
A cash receipts budget of flying consumers.
Explanation:
Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.
Usually an operational budget is set before activities begin, and is a target to be achieved.
For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.
However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.
<u>Because the </u><u>equilibrium quality </u><u>chosen by the market would be lower than the level that most people would consider desirable, the quantity of public college education determined in a free market (without government intervention) is a</u><u> market failure.</u>
How does government intervention lead to a collapse of the market?
- Lack of information, market regulation, public goods, and externalities can all contribute to market failure.
- Government intervention, such as new laws, taxes, tariffs, subsidies, and trade restrictions, can be used to fix market failures.
How does the market for education fail?
- Due to systematic undervaluation of the roles of motivation and engagement by educational policy, there is a significant market failure in the context of education.
- Lack of metrics for those qualities and ignorance of their potential usefulness serve as examples of this undervaluation.
Learn more about market failures
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Answer:
The correct answer is option D.
Explanation:
The income and interest rates are inversely or negatively related in the goods market.
An increase in interest rate would lead to increase in the cost of borrowing.As a result the capital investment will fall. This would further contribute in a decline in the production. This ultimately causes income level to decline.
In the money market though equilibrium levels of income and interest rate are positively related.
The equilibrium in the money market is determined by the intersection of demand for money curve and supply of money curve.
The demand for money depends on transactionary and precautionary motives. When there is an increase in income, the transactionary demand for money will increase as people will spend more. The increase in demand would cause the interest rate to rise.
In this way, income and interest rate arepositively related in the money market.
Answer:
2129 futures contracts to be sold
Explanation:
Asset worth = $310 million
Asset duration = 12 years
liabilities = $248 million
Liabilities duration = 5 years
T-bond futures contracts = 104-20 (30nds)
% of assets = 310 / 248 =
<u>Determine how many futures contracts Village Bank will sell to fully hedge the balance </u>
Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]
= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]
= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]
= - [ 310 * 5.75 / 837.3336 ]
= - 2.12878 * 1000
= 2128.78 ≈ 2129 ( number of futures contracts to be sold )
Answer:
$67,150
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $12,750
Adjustment made:
Add : Depreciation expense $32,600
Add: Decrease in accounts receivable $21,500
Less: Increase in inventory -$18,300
Add: Increase in accounts payable $19,800
Less: Decrease in interest payable -$1,200
Total of Adjustments $54,400
Net Cash flow from Operating activities $67,150