Stealth bank is holding $4 million in reserves and $9 million in government bonds. $2.6 million is the stealth bank's net worth in millions of dollars.
($4mil + $9mil + $9.6mil) - $20mil = $2.6 million net worth.
For the Stealth Bank, net worth is equal to $2.6 million; that is, $22.6 million in assets minus $20 million in liabilities.
A government bond is a debt security issued by a government to support government spending and scores. Government bonds can pay periodic interest payments called pasteboard payments. Government bonds issued by public governments are frequently considered low-threat investments since the issuing government backs them.
Government bonds issued by civil governments are among the safest investments around, frequently carrying a threat-free rate of return. still, because of their lower threat, they also carry fairly lower yields.
a bondholder invests$,000( called face value) into a 10- time government bond with a 10 periodic pasteboard; the government would pay the bondholder 10 of the$,000 each time. At the maturity date the government would give back the original$,000.
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Answer:
Check the explanation
Explanation:
The Ending inventory <em><u>(which is the quantity of records of stock a company has at the ending of its financial year. It is strongly associated with ending inventory cost, which can be referred to as the amount of money that was used to get these goods in stock.)</u></em> at the end of each month can be seen in the attached image below:
Answer:
will incur an increase in income in the amount of $500
Explanation:
If the company will accept the additional order and it wont affect the current sales, the costs that are relevant to decision making process is the possible increase in the sales and the possible increase in the costs incurred.
The increase in sales is computed by multiplying the number of units (10,000) and the selling price that the potential customer is willing to pay ($0.75).
So, 10,000 units x $0.75 = $7,500
By the moment the company will accept the order, their cost will increase to $82,000 from its original cost of $75,000. Hence, an increase of $7,000 ($82,000 - $75,000) will arise.
As a result of the foregoing analysis, an increase of $7,500 in sales less the increase of cost in the amount of $7,000 provides an additional income of $500.
Answer: Consumer price index (CPI) is weighted price index of basket of good that a consumer purchases each month. CPI is fixed in nature. It is an economic indicator. A rise in CPI indicates consumer inflation rate. The are type of bias that effects the measurement of CPI are: substitution bias, quality bias and outlet bias.
Explanation: Following are the bias:
- <u>Substitution Bias</u>- it arises when prices in the consumer basket increases and consequently low price alternatives or substitutes are opted by the consumer. As we know CPI is fixed-weight price index so the impact is not predicted accurately.
- <u>Quality bias</u>- It arises when any increase in technology increases the quality life of a product. Constant change in the quality of the product again does not reflect in consumer price index.
- <u>Outlet bias</u>- consumer shifts to new places or outlets as per their taste and preferences which is again not well represented by the CPI.
