Answer:
A. The demand for money falls and the interest rate falls
Explanation:
As in general sense when the price level falls it means that the goods will cost less than the earlier stated cost. As the cost will fall the value of money will increase in terms of goods.
Accordingly an individual can buy more goods with same amount of money. This will reduce the demand for money in the market.
Ultimately people will not borrow money and that the demand for loans will fall. Accordingly as banks earn through interest income on loans they will be ready to lend at a lower rate of interest.
Thus, option A is correct.
The answer is Cash. Here’s a tip: Copy and paste the question into Google and most times you’ll be able to find a Quizlet that answers your question faster.
She can try reading stories, correct her mistakes on her own and then check to see how she has done, she can study Riggs too.
Answer:
There will be no recorded change because the equity method comes into play from the acquisition date
Explanation:
In the event that Hawkins Company purchases or acquires another 30 percent of Larker, Inc. to add to their initial 10 percent holding, there will be no change in the investor report. This is because using the equity method, any investor report only starts taking into effect from the day the acquisition was made. Older statements and reports are not tampered with, as the investor did not have up to 40% of the company at that point in time.
Answer: FALSE
Explanation: In simple words, operating leverage refers to the criteria which shows how much operating income can be increase by increasing the revenue of a project. Whereas, financial leverage refers to the level of debt that a firm has acquired for financing its operations.
The management of a company can easily control financial leverage as it is in their hands to issue or redeem debt. On the other hand, increase or decrease in operating income is dependent on various external factor.
Hence the given statement is false.
