The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.
<h3>What do you mean by Duration Gap?</h3>
Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.
Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.
Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.
Learn more about Duration gap here:
brainly.com/question/7276068
#SPJ1
Answer:
a. Unity of direction
Explanation:
Unity of direction: In this principle, the direction of work is given by the higher authority with a view to achieving the organizational objective.
Division of work: In this principle, the work is divided between many subordinates/ employees, so that the task should be done in proper time and in an efficient & effective manner.
Scalar chain: This scalar chain represents the rank from high authority to low authority in a straight line so that proper communication/ cooperation can be done without any misunderstanding.
Unity of command: In this principle, the employees are responsible for only one person/ one supervisor/ one commander.
In the given scenario, the unity of direction principle applies as the board of directors wants to establish an independent business so that each domain objective can be achieved so that it becomes to accomplish the organizational objective.
According to the Keynesian approach an increase in the money supply increases real GDP by lowering interest rates which increases investment.
The Keynesian theory implied that during a recession inflationary pressures are low, but when the level of output is at or even pushing beyond potential gross domestic product, or GDP, the economy is at greater risk for inflation.
Keynesians do believe in an indirect link between the money supply and real GDP. They believe that expansionary monetary policy increases the supply of loanable funds available through the banking system, causing interest rates to fall.
Learn more about Keynesian here
brainly.com/question/1171653
#SPJ4
Answer:
<em>Computation of the interest expense using the equation as shown below:
</em>
Interest expense for year 1 = Notes payable * Interest rate
= $100,000 * 10%
= $7,000
Notes payable reduction in Year 1 = $14,238 - $7,000
= $7,238
General journal entry
Item Debit Credit
<em>Notes payable $7,745</em>
Interest expense $6,493
Cash $14,238
Workings
Interest expense = ($100,000 - $7,238) * 7%
= $92,762 * 7%
=$6,493
Answer:Please Refer to the explanation section
Explanation:
The question has insufficient information, we are supposed to be studying the diagram to determine outlier countries with poorest international shipping logistics. i have consulted the International Shipping Logistic performance index 2018 to find poorest countries in terms of international shipping logistics. according to the world bank countries like Zimbabwe, Lesotho , Syrian Arab Leon , Sierra Leon and Niger are some of the poorest countries when incomes to international shipping
Challenges Faced by these countries.
- Challenge of being land locked.
Countries like Zimbabwe , Niger and Lesotho face great challenges in international shipping logistics because they are land locked. any Political instabilities in the neighbouring countries affect they logistics businesses directly because the need entry to other countries to transport goods
Countries like Syrian Arab Republic, Somalia and Sierra Leon suffer from Political instability which makes it difficult for the to trade with other countries.
