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4 years ago

Consider the relative liquidity of the following assets:

Business

1 answer:

NeTakaya4 years ago

4 0

Answer:

1. A $20 bill

2. A bond issued by a publicly traded company

3. The funds in a money market account

4. Your car

Explanation:

Liquidity means that how easily an asset can be converted into cash.

1. Currency is the most liquid means of medium of exchange, so $20 bill is highly liquid asset.

2. A publicly traded bond can be converted into cash within a couple of days, so it is second most liquid asset.

3. The funds invested in the money market can be withdrawn within agreed period of time which can be in months or days so it can be at seconf or third most liquid asset.

4. A car can take more than a month to locate a customer to sell it at appropriate price so it is the least liquid asset.

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Explanation:

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3 years ago

The price elasticity of demand in the United States for crude oil has been estimated to be minus −0.061 in the short run and min

Stolb23 [73]

Answer:

The correct answer is the option D: is equally price inelastic in both the short run an long run as there are not many substitutes for crude oil.

Explanation:

To begin with, the concept called ''price elasticity of demand'' in the field of economic, refers to the variation that happens in the quantity demanded of a product when its price changes. Moreover, this theory establishes that goods could be either price elastic or price inelastic. In addition to that, the products that are price elastic are the ones whose quantity demanded changes when a variation in its price occur, meanwhile the products that are price inelastic are those whose quantity demanded do not changes when a variation in its price happen.

In conclusion, the demand for crude oil is equally price inelastic in both the short and long run as there are not many substitutes for crude oil and therefore the people will still continue to consume it no matter how many changes in its price will happen, due to its uniqueness.

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3 years ago

Micro environment essay

lbvjy [14]

Answer:

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2 years ago

Contracts are typically private agreements in that they bind the two parties and no one else. Thus, parties not in privity of co

umka2103 [35]

Answer:

The type of transfer of rights or duties described in this case is an assignment of contract rights.

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Transfer of contract rights or duties may be either the assignment or the delegation of contractual rights and responsibilities to a third party. While assignment involves the transfer of rights or benefits from the assignor to the assignee, delegation involves the appointment of another party to perform one's duties under a contract.

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3 years ago

Net present value is ______. used to determine if a project is an acceptable capital investment the difference between the prese

KATRIN_1 [288]

Answer: the difference between the present value of cash inflows and present value of cash outflows

Explanation:

The value of money is always changing and usually for the worst. Inflation means that $1 today is not worth $1 in a year's time. This poses a risk to investors who want to make profit and can't do that if they do not cater for inflation or the loss of value in their profit estimations. This is where Net Present Value comes in.

NET PRESENT VALUE works by subtracting the present value of Cash Outflows ( investment) from the present value of Cash Inflows (Revenue).

To do this, a DISCOUNT RATE is used which is essentially a value that people believe the currency involved will reduce by going forward. This Discount Rate equates the value of money in the future to it's value now.

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3 years ago