All categories

3 years ago

A decline in interest rates is expected to __________.

2 answers:

8 0

A decline in interest rates is expected to put the economy in recession. This is because with less interest comes less money earned and less spending as a result.

Fiesta28 [93]3 years ago

3 0

Explanation:

There are two types of interest rates in the economy. The first one is the rate of interest that banks or financial institutions give to the people for keeping their money with the bank for a specified period of time. The second one is the rate of interest which people have to pay for the loan they borrowed from the banks or financial institutions. There is a huge difference in both of the interest rates. If you are asking about the interest rate which banks pay to the people, then with the decrease of that interest rate, people will less likely to put their money in banks and thus the circulation of money will increase in the economy and the inflation would in turn increase. But if you talk about the interest that people have to pay on borrowing loans, then the decline in such interest rate will encourage people to take more loans and grow their businesses or anything they want. This would increase the economic activity in the country and thus economy will grow.

You might be interested in

The Pack Company purchased an office building for $9,000,000. The building had an estimated useful life of 40 years and an expec

xz_007 [3.2K]

<h2>Depreciation = Cost Price --Salvage/Useful Life</h2><h2>=9,00,000-1,00,000/40</h2><h2>=8,00,000/40</h2><h2>= 20,000</h2><h2 /><h3>Explanation:</h3><h3>Depreciation is 20,000</h3><h3></h3>

8 0

2 years ago

The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical compone

Deffense [45]

Answer:

Explanation:

a) x1 = number of unit product 1 to produce , and

x2 number of unit product 2 to produce

A linear program that will maximize world light profit is the following

maximize $x_1+2x_2$ subject to $x_1+3x_2\leq 200$

$2x_1+2x_2\leq 300\\\\x_2\leq 60\\\\x_1\geq 0\\\\x_2\geq 0$

Unit 1 is used both in products in 1 : 3 ratio which can be a maximum of 200 unit 2 is used in 2 : 2 ratio which can be maximum of 300

So, this can be written as the inequations

Profit functio is p = 0ne dollar on product A and two dollar on product B

= x + 2y

Now , we find a feasible area whose extremeties will give the maximum profit for, the graph is ( see attached file )

So on the graph, we can get the other extremeties of the shaded regional so which will not give maximum profit ,

Thus , the maximum possible profit is

p = ($1 * 125) + ($2 * 25)

= $175

4 0

3 years ago

Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Expla

kvasek [131]

Answer:

The explanation of the terms of the option contract change is below

Explanation:

a. Every call option contract will cover more shares

= 500 × 1.1

= 550

for computing the 1.1 (1 + 10%)

The strike price will be reduced for each share to

= 40 ÷ 1.1

= $36.364

b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place

c. Each contract call option will cover more shares

= 500 × 4

= 2,000

The strike price will be reduced for each share to 40 ÷ 4

= $10

3 0

3 years ago

Elevator speech is another term for

Fynjy0 [20]

Answer:

An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period of time.

4 0

3 years ago

Read 2 more answers

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of busin

lutik1710 [3]

Answer:

c.$209,160

Explanation:

Given that the cash received from each sale will be collected over 2 months. If 30% of mechanize is to be sold for cash, then 70% will be sold on account. Further more, 80% of the credit/sale on account will be collected in the month of sale and 20% in the following month.

Hence for October, cash collection will include 20% of credit sale from September and 80% of the credit sale in the month.

Given that sales in September is $250,000

Amount expected to sold on account

= $250,000 - (30% × $250,000)

= $175,000

Amount expected to be collected from this sale in October

= 20% × $175,000

= $35,000

Amount of credit sale in October

= $311,000 - (30% × $311,000)

= $217,700

Amount of this credit sale to be collected in October

= 80% × $217,700

= $174,160

Total collected from accounts receivable in October

= $174,160 + $35,000

= $209,160

6 0

2 years ago