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MatroZZZ [7]
3 years ago
7

Inflation is 3% per year, what does it mean to place money in your savings account today with interest rates that are .5%

Business
1 answer:
alexira [117]3 years ago
6 0

Answer:

It means that your money will lose value as you will earn less interest than the grow in the inflation rate.  

Explanation:

The inflation is the change on the prices of goods and services from a market basket as they become more expensive year by year. The Inflation rate of 3% suggest that the prices in the economy will increase a 3% at the end of the year while the interest on the money you have deposited in your bank account will gain only 0.5% at the end of the year.

Then the prices of good and services will growth faster than the growth in your savings. This situation makes that you lose purchase power with your money and therefore it will not be intelligent to keep the money in that savings account. The best thing to do is to search for another investment such a Term Deposit or Stocks.  

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Difference between uninsurable and insurable risks
Airida [17]
Uninsurable risk : The risk cannot be estimated and not probable to forsee

Example : You cannot insure you losing or winning the lottery

Insurable Risk : If the risk is can be estimated and probable to forsee

Example : A football player insure their legs from potential injury

hope this helps
6 0
4 years ago
Read 2 more answers
The race to the bottom scenario of global environmental degradation is explained roughly like this:
DIA [1.3K]

Answer:

A. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.

D. self-sufficiency argument.

Explanation:

In the case when there is a race to the bottom scenario so it would be described that the multinational companies that are profit seeking is shifting their production from that countries who have the strong environmental standards to the weak standard countries so that the order would be decreased due to this the profit would increase

In the other case, when the nation is not too much depend on other countries for supplies so this case we called as self-sufficiency argument as they managed themselves rather depending on another

6 0
3 years ago
Read 2 more answers
If a country had a trade deficit of $10 billion and then its exports rose by $20 billion and its imports rose by $10 billion, it
blagie [28]

Answer:

the answer would be $0

7 0
3 years ago
Following are the transactions of a new company called Pose-for-Pics.
liraira [26]

Answer:

                               Pose-for-Pics

                               Trial Balance

                For the month ended August 31

                                                    DEBIT      CREDIT

b. Cash                                       8,539

c. Offices                               2,280

d. Prepaid insurance               2,300

e. Photography equipment      51,600

f. Common stock                                      63,600

g. Photography fees earned                2,000

<u>h. Utilities expense                  881                   </u>

i. Totals                                     65,600    65,600

Explanation:

In trial balance, all accounts in general either real or nominal is posted here whether on debit or credit side. It shows the balances of debits and credits entries from the transaction of the general journal that the company have made for the period. There are 2 types of trial balance, the unadjusted trial balance and the adjusted trial balance.

8 0
4 years ago
Dyl pickle inc. had credit sales of $3,500,000 last year and its days sales outstanding was dso = 35 days. what was its average
yKpoI14uk [10]
The Formula we're going to use is:
DSO=(Sales/365)

Application:
1. 35($3,500,000/365) = $335,616
ANSWER: $335,616

or if you are having a hard time.
2. $3,500,000/365 = 9,589.04
then,
9,589.04 x 35 = $335,616
4 0
3 years ago
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