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3 years ago

What three functions does money serve in the economy?

Business

1 answer:

schepotkina [342]3 years ago

8 0

It provides medium of exchange, unit of account, store of value, and standard of deferred payment

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On December 1, 2018, Marigold Corp. issued at 102, 750 of its 7%, $1,000 bonds. Attached to each bond was one detachable stock w

balu736 [363]

Answer:

$726,750

Explanation:

According to the given problem,

Bonds issued at 103% of the face value.

Face value of the bonds = $1000

Coupon rate = 7%

Number of bonds issued = 750

The data indicates that each bond is issued with a separate stock warrant which has a market value of $50.

However the question was provided that the value of the proceeds from issuing the bonds should be found.

At 102 per cent of the bond's face value, each bond is issued.

Request bond price along with stock warrant.

= 102% ($1000) = $1020

Total number of bonds = 750

Proceeds from the issuance of total number of bonds

= 750 * $1020 = $765 000

The value of the proceeds from issuing the bonds therefore is $765 000.

You deduct the $50 stock purchase warrant at 102 per cent initial market value.

50 * 1.03 = 51

51*750 = 38250

$765,000 - $38,250 = $72,6750

3 0

3 years ago

Countries with strong balance sheets and declining budget deficits tend to have lower interest rates. When the economy is weaken

Nadya [2.5K]

Answer:

Solution for question 1

It is not necessary that action that lower the short term interest rate will lower the long term interest rate also.

So given statement is false.

Solution for question 2

Because of subprime crisis in 2008 most of the Market collapsed and there is a huge problem of liquidity. Yield on US treasury security was decreased and so the price of treasury securities was increased.

Hence, given statement is true.

Solution for question 3

Countries with strong balance sheet mean countries are developed and so interest rate in these countries is lowered.

Hence, given statement is true.

Solution for question 4

One of the major function of Federal Reserve is to control economic activities. In the Era of globalization all countries economy is depend on other economy. So interest rate in USA highly dependent on other countries.

Hence, given statement is true.

3 0

3 years ago

The following three separate situations require adjusting journal entries to prepare financial statements as of April 30. For ea

antiseptic1488 [7]

Answer:

pasensya na di ko alam ang sagot

3 0

3 years ago

A company had average total assets of $937,000. Its gross sales were $1, 099,000 and its net sales were $960,000. The company's

Sergio039 [100]

Answer:

The answer is 1.02

Explanation:

Asset turnover is an effiency ratio and it measures the how efficient a company is using its asset to generate profit.

The formula is Revenue or net sales / total asset

Revenue or net sales = $960,000

Total asset = $937,000

$960,000/$937,000

= 1.02

This ratio means that for every dollar in assets, the company generates $1.02

3 0

3 years ago

A certain bank assigns a unique number to each savings account. the amount of savings in each account depends on how much the ow

lianna [129]

Based on the scenario,
I think the relations that is not a function is :
B. (interest paid, amount in saving account)
The last two options are definitely a function

Hope this helps

7 0

3 years ago