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3 years ago

Why is using money as a medium of exchange preferable to bartering?

Business

1 answer:

Y_Kistochka [10]3 years ago

8 0

Answer:

Money as a medium of exchange is more preferable because of its less cumbersome nature.

Explanation:

Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.

Money is easily stored compared to a barter system.

Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.

Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.

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Kenneth made a $20,000 investment in year 1, received a $5,000 return in year 2, made an $8,000 cash payment in year 3, and rece

riadik2000 [5.3K]

Answer:

Investment = 20,000

Return 2 = 5,000

Payment y3 = 8,000

Initial Investment = 20,000

NPV = -$5,881.89

Explanation:

8 0

3 years ago

When the increase in the price of one good causes the demand for another good to decrease, the goods are Group of answer choices

miskamm [114]

Answer:

complements.

Explanation:

Complementary goods are those goods that can be used together. When there is complementary goods so if there is a rise in the price of one good so it reduced the quantity demanded for that particular good so automatically its complementary good demand is also reduced as the goods are used together

Therefore as per the given situation, the option 2 is correct

8 0

3 years ago

The number of different people or households exposed to an advertisement is referred to as.

gulaghasi [49]

The different kind of the people exposed to the advertisement is known as Audience.

<h3>What is Advertisement?</h3>

Advertisement is the Strategy adopted by the producer of the goods and services in order to attract the customers. It is a type of the promotion of the product done by the company.

Advertisement helps to grasp the more and more consumers which is also referred as Audience.

Learn more about Advertisement here:

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7 0

2 years ago

Present Value Computations

Rama09 [41]

Answer:

The present value on January 1, 2016, of $30,000 due on January 1, 2020, and discounted at 10% compounded annually is $ 20,490.40

The present value on January 1, 2016, of $40,000 due on January 1, 2020, and discounted at 11% compounded semiannually is $ 26,063.95

The present value on January 1, 2016, of $50,000 due on January 1, 2020, and discounted at 16% compounded quarterly is $ 26,695.41

Explanation:

The present value formula is given as PV=FV*(1+rs/t)^-nt

where FV is the future worth of the amount

rs is the stated interest

t is the number of compounding per year

n is the number of years of investment which 4 years in this case

PV of $30,000 compounded annually:

PV=$30,000*(1+10%/1)^-(1*4)=$20,490.40

PV of $40,000 compounded semiannually:

PV=$40,000*(1+11%/2)^-(2*4)=$ 26,063.95

PV of $50,000 compounded quarterly:

PV=$50,000*(1+16%/4)^-(4*4)=$26,695.41

7 0

3 years ago

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1 comma 000,

Andrews [41]

Answer:

$1,159.22

Explanation:

to determine the price of the bond immediately after it pays its first coupon:

YTM = {coupon rate + [(face value - market value)/n]} / [(face value + market value)/2]

0.063 = {75 + [(1,000 - market value)/9]} / [(1,000 + market value)/2]

0.0315 x (1,000 + x) = 75 + [(1,000 - x)/9]

31.5 + 0.0315x = 75 + 111.11 - 0.1111x

0.0315x + 0.1111x = 154.61

0.1426x = 154.61

x = 154.61 / 0.1426 = $1,084.22

the price of the bond immediately before it makes its first coupon payment = $1,084.22 + $75 = $1,159.22

3 0

3 years ago