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3 years ago

Lower interest rates are part of tight money policy.

Business

1 answer:

AVprozaik [17]3 years ago

6 0

The statement, 'lower interest rates are part of tight money policy' is false.

Explanation:

Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.

So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.

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When a country allows trade and becomes an importer of jet skis,

Delvig [45]

The best answer for this question would be:

b. domestic producers of jet skis are worse off, domestic consumers of jet skis are better off, and the economic well-being of the country rises.

Because originally the jet skis came from the country they originated from so the quality is original and more trusted to the consumers.

7 0

3 years ago

Ness, a broker, advises Ollie to invest in Penny Stock Inc. When the share price of Penny’s stock drops, Ollie accuses Ness of f

DerKrebs [107]

Answer: d. a misrepresentation of a fact knowing it is falso

Explanation:

Reliance that gives rise to liability for fraud requires intentional misrepresentation, that is a misrepresentation of a fact knowing that it is false. If Ness, the broker intentionally misled Ollie and advised Ollie to buy Penny stock shares based on Ness's that the stock price will rise Ness will be charged with fraud.

5 0

3 years ago

A man has $245,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is $23

astraxan [27]

Answer:

for 8% investment = $110000

for 12% investment = $55000

for 10% investment = $80000

annual income for each property is

x amount for 8% investment = $8800

y amount for 12% investment = $6600

z amount for 10% investment = $8000

Explanation:

Given data

investment = $245000

rate 1 = 12%

rate 2 = 10%

rate 3 = 8%

annual income = $23400

rate = 8% twice that invested at 12%

to find out

invested in each property and the annual income from each property

solution

let us consider x amount for 8% investment

and consider y amount for 12% investment

and consider z amount for 10% investment

from question we say, 8% is twice that invested at 12%

x = 2y ........1

and

x + y + z = 245000 .............2

put 1 in equation 2

2y + y + z = 245000

z = 245000 - 3y ...................3

and we can say that

0.08x + 0.12y + 0.10z = 23400 ...........................4

put equation 1 and 3 in 4

0.08(2y) + 0.12y + 0.10( 245000 - 3y ) = 23400

0.16y + 0.12y - 0.3y = -1100

0.02y = 1100

y = $55000

so x = 2(y) = 2(5500) = $110000

and z = 245000 - 3(55000) = $80000

so annual income for each property is

x amount for 8% investment = 0.08 × 110000 = $8800

y amount for 12% investment = 0.12 × 55000 = $6600

z amount for 10% investment = 0.10 × 80000 = $8000

4 0

3 years ago

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o

baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense: 900,000

EBITA 2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0 and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

$2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

the IRR:

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

I will explain you in Excel

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

the simple rate of return:

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0

3 years ago

In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T

Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen 140,000

Daniel 40,000

Capital before admission 180,000

share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment 40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0

3 years ago