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3 years ago

Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?

2 answers:

8 0

It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices and interest rates go in opposite directions so bond prices will rise when recession starts.

Alekssandra [29.7K]3 years ago

8 0

Yes because a treasury bond is backed by the government

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Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Business has fuele

maria [59]

Answer:

Competitive Drivers 

Description

Explosive growth in international business

Implication for Business

Intense competition in world markets

Globalization has led to an explosive growth in international.business which has led to increased competition amongst companies because they now have to compete on a global scale against numerous companies in various locales.

Political Drivers 

Description

Preferential trading arrangements and privatization of industries

Implications for Business

Increased opportunities for trade and investment

Some Countries offer great trading agreements this enabling companies to trade in other countries. This opportunity means that there are increased opportunities for trade by companies in the countries involved in the agreement.

Cost Drivers

Description

Exporting or producing Overseas

Implications for Business

Lower Cost of Goods sold

Globalization has enabled companies to be able to produce in cheaper markets for labor such as in Asia and Africa. This has led to a lower cost of goods sold and therefore higher profits.

Technological Drivers 

Description

Explosive growth of high-power, low-cost computing

Implications for Business

Growth in Services.

Driving Globalization is an increased use of technology by human beings. The world is now connected by mere seconds which has enabled companies to derived clients all over the world this enabling them to offer more services.

Market Drivers

Description

Emergence of Global Customers

Implications for Business

New Opportunities and New Markets.

Another factor driving Globalization is the availability of new markets to sell their goods in in different territories. Companies can therefore have an increased demand base which will mean more Profitability.

5 0

3 years ago

Patricia purchased a home on January 1, 2017 for $1,420,000 by making a down payment of $100,000 and financing the remaining $1,

Oksana_A [137]

Answer: $60,000

Explanation:

The maximum amount deductible is based on a mortgage of $1,000,000 and the interest rate of the mortgage being paid.

Interest on $1,000,000 at 6% is:

= 6% * 1,000,000

= $60,000

Only $60,000 of the $79,200 may be deducted.

6 0

3 years ago

All of the following are fees typically charged by credit card companies EXCEPT:

Naya [18.7K]

D. would be the correct answer I believe!

7 0

3 years ago

Spruce Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the plant

Tanya [424]

Answer:

1. $3,000 Favorable

2. $6,600 Unfavorable.

Explanation:

This is an incomplete question. However, the completed part is question number 2, which has been solved below.

1. Direct material price variance

= (Actual price - Standard price) Actual quantity

= ($2.16 - $2.20) × 75,000

= -$0.04 × 75,000

= $3,000 Favorable

Note: Actual price is gotten by; $162,000 / 75,000

= $2.16

2. Direct material quantity variance

= (Actual quantity - Standard quantity) × Standard price

= (75,000 - $72,000) × $2.20

= 3,000 × $2.20

= $6,600 Unfavorable

Note: Standard quantity is gotten by;

24 × 3,000

= 72,000

6 0

3 years ago

Griffin corp. is evaluating its piquette division, an investment center. the division has a $60,000 controllable margin and $400

liberstina [14]

Given:
Controllable margin = 60,000
sales = 400,000
return on investments = 10%

Return on investments = net profit / average operating assets

10% = 60,000 / ave. operating assets.

Average operating assets = 60,000 / 10%
Average operating assets = 600,000

Griffin's average operating assets will be 600,000 when its return on investment is 10%.

6 0

3 years ago