Answer:
2. People face trade-offs.
Explanation:
People face trade-off after cost and benefit analysis. for example, spending more time studying economics involve a benefit (a benefit is to get high marks in the subject). and cost is you could have spent that time doing something else, such as working in a restaurant to earn money. That is, your decision involves a trade-offs.
Answer:
The omission of this entry understated accrued liabilites. given that the related inventory was sold in year 1, it aslo overstated net income and retained earnings by understating cost of goods sold, the same effects would occur if the insurance costs were chargeable to expense as a period cost
Explanation:
Rules specify that contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. This means that a loss would be recorded (debit) and a liability established (credit) in advance of the settlement.
Answer: Marketing Stock Basis of $826,500
Explanation:
a) She will recognize no loss as the exchange is TAX DEFERRED.
b) The Stock Basis is calculated with the following formula,
Stock basis = Carryover Basis - Cash received
Plugging in the figures therefore we will have,
Stock Basis = $1,340,000 -$513,500
= $826,500.
If Celeste had sold stocks at $513,500, she would have suffered a loss of $313,000 (826,500 - 513,500).
If you need any clarification do react or comment.
Answer:
The correct answer is A. expanding open market purchases and the money supply even when short-term interest rates are zero, C. purchase of assets other than government bonds, D. providing 'forward guidance' about future short-term interest rates to influence expectations of future long-term interest rates.
Explanation:
An unconventional monetary policy is one that uses unusual mechanisms to reactivate the economy and maintain economic-financial stability.
Unconventional or non-standard monetary policy are those unusual mechanisms. They are often used in times of deep crisis, when conventional monetary policy is not enough. Initially, the central bank modifies basic parameters such as interest rates. If this has no effect on the economy, then turn to more aggressive policies.
Beyond the objectives of monetary policy in general, unconventional monetary policy pursues its own. Its objectives are:
- Provide or drain liquidity with more powerful mechanisms.
- Maintain the proper functioning of the financial markets.
It is also important that among the unconventional measures, there are modified conventional measures. For example, as an unconventional measure, the central bank can modify the maturities of a conventional monetary policy instrument.
