All categories

3 years ago

What type of relationship exist between money supply and prices?

2 answers:

6 0

Supply and price are both linked to the demand of a product. The higher the demand the higher the consumer(s) are willing to pay a price for a specific good and or service.

VMariaS [17]3 years ago

3 0

Money supply is the total amount of currency in a financial products to make an economy, which makes a relationship with prices.

You might be interested in

A very broad-ranging diagnostic tool for change agents which should be used as a starting point when an organization has ignored

blagie [28]

The correct answer to your question is:

Diagnosis Using the PESTEL Framework

6 0

3 years ago

Consider two bonds, a 3-year bond paying an annual coupon of 5% and a 10-year bond also with an annual coupon of 5%. Both curren

Schach [20]

Answer:

Bond Price = $875.6574005 rounded off to $875.66

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1,000 * 0.05 = $50

Total periods (n) = 3

r or YTM = 0.10

The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.10)^-3) / 0.10] + 1000 / (1+0.10)^3

Bond Price = $875.6574005 rounded off to $875.66

8 0

3 years ago

On January 1, 2019, XYZ Co. issued 2-year bonds with a face value of $10,000 and a stated interest rate of 10%, payable semiannu

Fiesta28 [93]

Answer:

Your answer is given below:

Explanation:

When bond is issued on yield to market at price of $10,179, interest is charged on outstanding amount of $10,179 of 9%.

So interest charged on June 30 is 9% for 6 months on $10,179

Interest expense=$10,179*9%*6/12

Interest expense for 6 months =$458

Cash paid for interest is however at stated interest rate of 10% on $10,000 for 6 months=$10,000*10%*6/12

Cash paid=$500

Difference of interest paid and interest expense is debited to bonds payable balance so bonds payable balance outstanding is reduced.

Bonds payable outstanding reduced=$500-$458

=$42

Bonds payable outstanding balance as on june 30=$10,179-$42

=$10,137

Now interest for last 6 months in 2019 is charged on $10,137 at 9%

Interest expense from June 30 to December 31=$10,137*9%*6/12

Interest expense=$456

Total interest expense for 2019=$456+458

=$914

So,total interest expense charged for 2019=$914

5 0

3 years ago

Strategically, having more than 1,000 suppliers results in a complex task of managing those suppliers, ensuring the quality of t

slavikrds [6]

Answer:

There are pros and cons of having 1,000 different suppliers for IKEA. In one way you can are not limited to choice, price or quality and have enough suppliers to shift production requirements to meet demand surges.

However, manage 1,000 different suppliers can also lead to quality issues that are difficult to sustain. IKEA can do a number of things including:

Explanation:

With so many products, IKEA can categorize each supplier e.g. fabric suppliers, wood suppliers, kitchen etc. In this way, it will be easier for different departments to be set up that actively manage these category of suppliers.

Since IKEA is a global brand, they can further categorise each supplier based on location. For example, they can have suppliers for the Asia-Pacific Market, other suppliers for the Middle East and another group for Europe and North America.

IKEA can also outsource is supply. Going by an 80:20 strategy where 80% of them are direct suppliers while 20% of them are outsourced, third part suppliers who only step in when required.

4 0

3 years ago

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match

slega [8]

Answer and Explanation:

The matching is as follows:

1. Dividends = A. Stockholders' Equity

2. Prepaid Insurance = D. Assets

3. Unearned Rent = E. Liabilities

4. Fees Earned = B. Revenue

5. Patents = D. Assets

In this way it should be matched

Like the dividend is come under equity so it is shown under stockholder equity

likewise it is applied for the other items

6 0

3 years ago