Answer: False
Explanation:
A sudden stop refers to the sudden decline in net capital inflows in the economy from outside. This is a significant method by which the economy can have access to foreign exchange.
If the country therefore borrows internationally in foreign currencies whilst lending in domestic currency, the sudden stop will be difficult to navigate because it will impair the country's ability to pay off the international creditors it has because it will not have enough of the required foreign currency to pay them.
All of plant and animal populations living in an habitat interact and form a community. Hopefully this answers your question.
Answer:
No options presented but the entry below should be right.
$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:
= 2,600 - 600
= $2,000
Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:
= 2,000 * ( 1 - 3%)
= $1,940
Date Account details Debit Credit
July 12 Accounts Payable $2,000
Cash $1,940
Merchandise inventory $60
Answer:
Winners
- 3rd National, a bank that loaned many people money for home purchases.
Losers
- Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
- Herb, who keeps his savings in an old coffee can.
- Joy, who has borrowed $40,000 to pay her college education.
- The US federal government which had almost $15 trillion in debt in 2011.
Explanation:
When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.
By doing that, they want to stop it or slowly decelerate it.
So that it becomes more expensive to take a loan, the idea is to reduce consumption.
In Economics, it's a bad scenario after all. Few winners. Many losers.
So, let's examine them
Winners
- 3rd National, a bank that loaned many people money for home purchases.
At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.
Losers
- Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.
- Herb, who keeps his savings in an old coffee can.
Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.
- Joy, who has borrowed $40,000 to pay her college education.
Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.
- The US federal government had almost $15 trillion in debt in 2011.
Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.
Answer:
E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.
Explanation:
As S1 gives more service, So it would be allocated first
Here
S1 cost of $280,000 would be allocated to S2 P1 and P2 based on number of employees
The total employees in S2 P1 and P2 is
= 20 + 50 + 70
= 140
And, the Cost to be allocated per employee is
= $280,000 ÷ 140
= $2,000
Now cost received by S2 is
= $2,000 × 20
= $40000
And, the cost received by P1 is
= $2,000 × 50
= $100,000
And, the cost received by P2 is
= $2,000 × $70
= $140,000
Now
S2 contains total cost of
= $350,000 + $40,000 (from S1)
= $390,000
So this would be allocated to P1 and P2 as S1 has already allocated
Hence, option D is correct
