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KiRa [710]
3 years ago
14

In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t

he decline in the value of their money. This relationship is referred to as the _________.
Business
1 answer:
choli [55]3 years ago
4 0

Answer:

The answer is Fisher effect

Explanation:

The Fisher Effect is an economic theory depicts the relationship between inflation and interest rates. Real interest rates decreases as inflation increases

The Fisher Effect's formula is:

Real interest rate = the nominal interest rate - the expected inflation rate.

Therefore, Fisher effect occurs in countries here inflation is expected to be high, interest rates also will be high, because investors want compensation for the decline in the value of their money

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Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2
Y_Kistochka [10]

Answer:

Insurance reduces one asset and increases another

Purchase of supplies on account increases liabilities and increases asset

Receipt of unpaid utility bill increases liability and reduces capital

Payment of accrued utility bill reduces asset as well as liability

Explanation:

The purchase of 36-month insurance brings about increase in asset,insurance prepayment  and reduction in another asset,cash.

The purchase of supplies on account brings about increase in liability,accrued liabilities or other accounts payable as well as increase in asset,inventory of supplies.

The receipt of utility bill yet to be paid,increases liability,accrued expenses and reduces capital,since an increase in expenses reduces retained earnings which is an integral part of capital

Payment of utility reduces asset,cash and at the same time reduces liability,accrued expenses

7 0
3 years ago
some pencils are to be shared between grade 7, grade eight students receive 196 more than grade 7 students no, find the total nu
allochka39001 [22]

Answer:

203

Explanation:

5 0
3 years ago
Lars, a shoe salesman, is paid every two weeks, whereas Tom receives a commission for each pair of shoes he sells. Evidently, La
alekssr [168]

Answer:

Lars is paid on a <u>FIXED INTERVAL</u> schedule of reinforcement, and Tom on a <u>FIXED RATIO</u> schedule of reinforcement.

Explanation:

A fixed interval payment schedule refers to being paid after a set amount of time. In this case Lars gets paid an amount every two weeks.

A fixed ratio payment schedule refers to being paid a fixed percent of the total sales made. In this case, Tom is paid a certain commission for every pair of shoes that he sells.

3 0
4 years ago
UPX bank is selling a security that makes equal annual payments of $7,000 with the first payment 3 years from today and the last
IRINA_888 [86]

Answer:

The security is worth $30,570.77.-

Explanation:

Giving the following information:

Annual payment (3 to 9)= $7,000

Interest rate= 5.1%

<u>First, we need to determine the value of the security 3 years from now:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {7,000*[(1.051^6) - 1]} / 0.051

FV= $47,833.35

PV= FV/(1+i)^n

PV= 47,833.35 / 1.051^6

PV= $35,490.70

The value of the security in 3 years is $35,490.70.

<u>Now, the present value:</u>

PV= 35,490.70 / 1.051^3

PV= $30,570.77

The security is worth $30,570.77.-

7 0
3 years ago
Jared helps people plan for retirement, so they have enough to live on when they're old. He is:
Schach [20]

Answer:

A financial planner

Explanation:

A financial planner is an expert in budgeting and money management matters. They help individuals and companies plan and achieve long term financial objectives. A financial planner assesses the client's financial aspects such as income, investment, savings, and expenditure and advice them accordingly.

Jared must be a financial planner. His responsibilities revolve around assisting people in making long-term financial plans.

5 0
3 years ago
Read 2 more answers
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