Answer:
B. Contractionary Monetary Policy
Explanation:
According to Investopedia, inflation is a quantitative measure of the rate at which average price level of selected goods and services in an economy increases over a period of time which causes the purchasing power of the currency to fall.
One popular method of controlling high inflation is the Contractionary Monetary Policy. The aim of the contractionary monetary policy is to cut the supply of money within an economy by decreasing bond prices and increasing interest rates through the central bank.
When the Central Bank increases their interests rates, banks become forced to increase their rates as well which discourages consumers from borrowing and makes saving more attractive.
These help to cut down spending, causes prices of goods and services to drop and consequently causes inflation to slow down.
Answer:
A- A. The clerk and the cashier have access to cash, but not to the accounting records
Answer:
What Jason Jennings and Mary Scott did with there firm is called merger.
Explanation:
Merger is when two existing independent business entities come together to become one entity. Some of the possible reasons Jason Jennings and Mary Scott decided to merge are:
To enjoy the economy of large scale production
The take advantage of synergy associated with merger
To reduce fixed cost
To make their business more competitive e.t.c.
Answer:
e) market risk premium.
Explanation:
The slope of the security market line represents the market risk premium.
Answer:
$1.47
Explanation:
Interest rate in foreign currency if=7%
Interest rate in local currency ih=5%
Spot rate (So)-dollars per unit of foreign currency=$1.5
Change in foregin currency exchange rate ef=((1+ih)/(1+if))-1
ef=(1+.05/1+.07)-1=-1.86%
Future spot rate (St)=So(1+ef)=1.5(1-.0186)=$1.47