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schepotkina [342]
3 years ago
12

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

Business
2 answers:
Annette [7]3 years ago
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 <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>
Alekssandra [29.7K]3 years ago
8 0
Yes because a treasury bond is backed by the government 
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Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: be
enyata [817]

Answer: $68,200

Explanation:

Estimated inventory = Difference between Goods available for Sale at Retail Price and Actual Sales made * Cost Retail Ratio

Retail value of Goods Available for Sale

= Retail Price of Beginning Inventory + Retail price of Purchases

= 120,000 + 480,000

= $600,000

Difference between Goods available for Sale at Retail Price and Actual Sales made

= 600,000 - 490,000

= $110,000

Cost to retail price ratio

= (Cost of Beginning Inventory + Cost of Purchases) / (Retail Price of Beginning Inventory + Retail Price of Purchases)

= (60,000 + 312,000) / (120,000 + 480,000)

= 62%

Ending inventory

= 110,000 × 62%

= $68,200

5 0
3 years ago
Lyla faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very
erma4kov [3.2K]

Answer:

D) publicity to help create a positive image for her firm and its products

Explanation:

Lyla's marketing budget is not very large, so she must find ways to optimize her resources. One way to do this is by getting publicity which generally is free. Publicity refers to getting public attention towards your company or your company's products or services. It creates awareness about your products and it can really influence the opinions of your potential customers. Maybe Lyla can sponsor some public event or competition which is actually much cheaper than mass media advertising and can also be much more effective.

6 0
3 years ago
Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8​%, and reserves
grandymaker [24]

Answer:

$3.68 million

Explanation:

Reserve Ratio = 8%

Reserves are currently = ​$25 million

Amount of deposits = ​$ 312.5 million

Deposit outflow = ​$4 million

Remaining Deposits =  Amount of deposits - Deposit outflow

                                  = $ 312.5 million - $4 million

                                  = $308.5 million

Current Required Reserve after outflow of deposits(CR):

= $25 million - ​$4 million

= $21 million

Therefore,

Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)

                                   = $21 - ($308.5 × 0.08)

                                   = $21 - $24.68

                                   = -($3.68)

Therefore, the reserve shortage created by a deposit outflow of ​$4 million is ​$3.68 million

3 0
3 years ago
The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Re
stiv31 [10]

The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Revenue, and Selling, general, & administrative expense/Revenue.

What ism financial ratios?

Financial ratios are instrument used by companies to make comparison or to  measure the relationship  between  different financial statement information or data.

Hence, the three financial ratios that constitute return on revenue  are:

  • Cost of goods sold/Revenue
  • Research & Development expense/Revenue
  • Selling, general, & administrative expense/Revenue

Learn more about financial ratios here:brainly.com/question/9091091

#SPJ1

6 0
2 years ago
In monopolistic competition, what effect do price variations generally have on the market as a whole
irinina [24]

In monopolistic competition, what effect do price variations generally have on the market as a whole?

It's no effect. 
4 0
3 years ago
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