Answer: e. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.
Explanation:
Long term bonds are considered to be more sensitive to interest rates as opposed to short term securities. If interest rates were to rise, the bond could lose value.
They are also more sensitive to inflation. If inflation rates rise, the value of payment reduces. It is for this reason that longer term bonds have maturity risk premiums added to them to cater for the amount of time the bond has till maturity.
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Answer:
a) $200
b) $3,000
c) $900
d) $50
Explanation:
The amount of each adjustment will be as follows
a) Business receives $2,000 on January 1 for 10-month service contract for the period January 1 through October 31.
Thus,
Monthly amount
= Total amount ÷ Duration from January 1 through October 31.
= $2,000 ÷ 10
= $200
b) Total salary for all employees is $3,000 per month. Employees are paid on the 1st and 15th of the month.
since the salary is paid per month it will be remain $3,000 after adjusting
c) The bill for the customer for the month is $900
d) The interest payable will remain same as $50 is paid each month
Answer:
The correct answer is: 10 years.
Explanation:
Almost after ten (10) years after World War II (WWII) ended, the American Federation of Labor (<em>AFL</em>) and the Congress of Industrial Organizations (<em>CIO</em>) joined forces in 1955 under union leader John L. Lewis command. This was mainly caused because of the increase in the number of unions by that year that included law enforcement officials, health care employees, and postal office workers.
Answer:
The correct answer is option A.
Explanation:
The monetary base can be defined as the amount of money that is in circulation in the hands of the public or held as reserves by banks.
The monetary base in an economy is equal to all currency in circulation plus reserves held by banks.
In other words, it includes highly liquid funds such as coins, notes, and bank deposits.
The money supply is a broader concept than the monetary base and includes the monetary base and other assets as well.
Answer:
The correct answer is:
$17 trillion.
Explanation:
The Gross Domestic Product or GDP represents the overall market value of all the goods and services a country produces and it measures the size of the economy. The GDP is determined with the following formula:
GDP = C + G + I + NX
where:
- C: private consumption or consumer spending
- G: government spending
- I: businesses' capital spending
- NX: net exports (exports - imports)
In the example:
GDP = $3 trillion + $10 trillion + $4 trillion = $17 trillion
