All categories

3 years ago

The difference between representative money and fiat money is that?

1 answer:

8 0

Great question! Fiat money deries it's value from law or regulation. However representative money derives its value either from a claim on a commodity (gold for example). However sometimes representative money means it has value higher than what it is made of, ie if you melt it down it is worth less than before it is melted down. In this sense fiat money is a type of representative money

You might be interested in

What is the largest source of a income for banks

Darina [25.2K]

Answer:

Interest income

Explanation:

7 0

2 years ago

Read 2 more answers

During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferr

Margaret [11]

Answer:

1. (4) Building at $180,000 and accumulated depreciation of $18,000.

2. (1) $312,000

3. (3) additional paid-in capital of $162,000.

Explanation:

1. The purchase price of building is $180,000

And the depreciation based on straight line method with a life of 30 years for each year = $180,000/30 = $6,000

Therefore, accumulated depreciation for 3 years = $6,000 $\times$ 3 = $18,000

2. Total amount of assets given to subsidiary shall be the cost, and value of investment in books = $100,000 of land + ($180,000 - $18,000) of building after depreciation + $50,000 cash given

Therefore total value of investment shall be $312,000

3. Additional paid in capital = Total value of investment - Cost of shares (par value of shares)

= $312,000 - ($10 $\times$ 15,000 shares) = $312,000 - $150,000

= $162,000

5 0

3 years ago

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,600 monthly. The contract currently sells for $117

Tanzania [10]

Answer:

The monthly return on this investment vehicle is 1.37%

Explanation:

A perpetuity contract is one which lasts forever, It does not any time limit. Live Forever Life Insurance Co will pay $1,600 for indefinite time on today's investment of #117,000.

Monthly return will be calculated using following formula:

Present value of Perpetuity = Perpetuity Received / Interest rate

$117,000 = $1,600 / r

r = $1,600 / $117,000

r = 1.37%

Monthly return on the perpetuity is 1.37% for this perpetuity.

4 0

3 years ago

"If a real estate professional says to a potential seller that the neighborhood is ""changing"" and ""isn't what it used to be,"

Marat540 [252]

Answer: True

Explanation: Blockbusting refers to the techniques used by the real agents in America. In general the agents and the builders use this for white house owners. The agents while using this, tries the owners that the racial communities are moving to the neighborhood and it would not be safe for them.

In simple words, they use the perception of racism so that they can get the property at relatively cheaper prices.

Thus, from the above we can conclude that the given statement is true.

5 0

3 years ago

Assume the football team is set up as a general partnership and that Lenny, Sarah, and Sam are all general partners in the team.

kramer

Answer: D.The Partnership may be sued as as the partner and the partners' liability unlimited

Explanation:

The Partnership may be sued as as the partner and the partners' liability unlimited

A partnership is not recognized as a legal entity, in a starndard partnership agreement Partners in a partnership are Personally liable. They are jointly and severally liable for the debts of the Partnership. Their personal belongings may be claims in order to settle the liabilities of the partnership

3 0

3 years ago