Answer:
an increase in prices.
Explanation:
When there is too much money in the economy due to high oil prices, prices tend to go up because surplus cash is pursuing few goods.
It is easy in this scenario to have prices double for some goods.
This is why where in areas where there is economic boom all prices go up from real estate to petty goods. This trend becomes the norm as residents take new price regime as normal.
Answer:
False
Explanation:
The above statement is false that , because it is normally unsecured , commercial paper is only offered by firms with no credit ratings.
Commercial paper is an unsecured promissory note issued by the good reputed companies . It is for short term . The time period of commercial paper is 15 days to 12 months .
A company cannot issue commercial paper if the credit rating is no longer . The face value of commercial paper is of rupees five lakh . It is minimum face value. The rates of commercial paper is usually cheaper . The commercial paper is liquid because of its less risk quality.
The commercial paper also provide<em> exit option to the investors </em>. They also reduce the cost of capital for the company. They are <em>very effective</em> for those who need<em> money in urgent</em> as they are quick way for raising money.
Answer: fractional reserve banking system allows banks to hold less than 100 percent of their deposits as reserves this is done to allow economic growth and lending
Explanation:
Answer:
Comparability means using the same accounting principles from year to year within a company.
Explanation:
Comparability is a term often used in accounting operation to describe the degree or level to which the information shown in the financial statements of a particular company is relative or comparable with other various companies, over a given period of time.
Hence, in this case, the correct answer is "Comparability means using the same accounting principles from year to year within a company." Because the statement is not CORRECT.
Answer:
(a) annual compounding = 5.063 %
(b) monthly compounding = 4.949 %
(c) continuous compounding = 4.939 %
Explanation:
given data
interest rate = 5 % = 0.05
solution
we get here equivalent rate for annual compounding
equivalent rate is express as
= 1 + r
r = 1.025² - 1
r = 5.063 %
and
now we get equivalent rate for monthly compounding that is
= 
solve it we get
r = 4.949 %
and
now we get equivalent rate for continuous compounding
= 
solve it we get
r = 4.939 %
