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Paladinen [302]
2 years ago
7

Agri-Cor sells farm equipment throughout the euro zone. The company has noticed that some customers travel to countries where eq

uipment sells for less to obtain a better deal. What implication of adopting the euro as a common currency does this situation demonstrate?
Multiple Choice

It makes it easier to compare prices across Europe.

It makes Europe an optimal currency area.

It leads to higher prices in Europe.

It decreases competition in Europe.

It increases the profit margins of European producers.

The Single European Act was put in place in an attempt to
Business
1 answer:
sergejj [24]2 years ago
3 0

Answer:

These statements are correct:

  • It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
  • It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.

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Your portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The mutual fund has a po
pshichka [43]

Answer:

8.01%

Explanation:

Expected return on mutual fund = Risk-free rate + Market risk premium*Beta

Expected return on mutual fund = 3% + 7.7%*1

Expected return on mutual fund = 10.70%

Best estimate of the portfolio expected rate of return = Weight of  mutual fund*Expected return on mutual fund + Weight of  risk-free Treasury bills*Expected return on risk-free  Treasury bills

Best estimate of the portfolio expected rate of return = 65%*10.70 + 35%*3

Best estimate of the portfolio expected rate of return = 0.08005

Best estimate of the portfolio expected rate of return = 8.01%

7 0
2 years ago
The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t
bonufazy [111]

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

To learn more about inelasticity visit here;

brainly.com/question/28192591

#SPJ4

7 0
1 year ago
Which of the following characteristics would lead the auditor to assess control risk at a higher level?a. It is difficult for th
Yuri [45]

Answer:

E. All of the above.

3 0
3 years ago
On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,00
Sav [38]

Answer:

$7,500,000 in 8% bonds, 5 years to maturity, semiannual coupon ($300,000)

sold at premium for $7,740,000

the journal entry to record the issuance should be:

Dr Cash 7,740,000

    Cr Bonds payable 7,500,000

    Cr Bond premium 240,000

<u>Using the straight line amortization:</u>

amortization per coupon payment = $240,000 / 10 coupons = $24,000

Dr Interest expense 276,000

Dr Bond premium 24,000

    Cr Cash 300,000

5 0
3 years ago
A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this
Rufina [12.5K]

Answer:

Option (b) is correct.

Explanation:

Given that,

Current assets = $70,000

Current liabilities = $50,000

Pays a current liability = $1,000

Current ratio(Prior) :

= Current assets ÷ Current liabilities

= $70,000 ÷ $50,000

= 1.40

Current ratio(After paying liability) :

= (Current assets - $1,000) ÷ (Current liabilities - $1,000)

= ($70,000 - $1,000) ÷ ($50,000 - $1,000)

= $69,000 ÷ $49,000

= 1.41

Therefore, there is an increase in current ratio.

Working capital(Prior):

= Current assets - Current liabilities

= $70,000 - $50,000

= $20,000

Working capital(After paying liability):

= (Current assets - $1,000) - (Current liabilities - $1,000)

= ($70,000 - $1,000) - ($50,000 - $1,000)

= $69,000 - $49,000

= $20,000

Therefore, there is no change in working capital.

3 0
3 years ago
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