1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 years ago
6

Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of a

n interest-earning deposit falls over time.b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit.d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.
Business
1 answer:
lilavasa [31]3 years ago
4 0

Answer:

The options which is NOT correct is C.

Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.

Explanation:

Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.

Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.

Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.

Cheers!

             

You might be interested in
What resources are required to have a successful business?
schepotkina [342]

Answer:

work nice be success in your life I don't know answer

7 0
3 years ago
Read 2 more answers
When a firm advertises that it only uses recycled paper products it is ________. meeting its legal obligations meeting its socia
yulyashka [42]
I believe the answer is: <span>Socially responsible
</span><span>Socially responsible companies are the type of company that not only focus on profitability but also contributed things for the benefit of the society where they operated.
To be </span><span>Socially responsible, companies could do several things such as: taking care of the environment, run an  honest practice, contribute to charities, etc.</span>
6 0
3 years ago
Question 1 What forces have caused cost and management accounting systems designed decades ago to become less relevant and less
sergey [27]

Answer to Question 1:

The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:

  • The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.
  • The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.
  • The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.

Answer to Question 2:

The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.

As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.

By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.

5 0
3 years ago
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic pric
LenKa [72]

Answer:

Export

True

False

True

Explanation:

Free trade is a form of trade policy where there are no restrictions to imports or exports of goods and services.

The price of meekers is $30 in Meekertown and $40 In the world. Because meeker's are cheaper in Meekertown, it means that Meekertown is efficient in the production of meekers. As a result, they would export meekers to the rest of the world. It would be cost efficient for the rest of the world to import from Meekertown.

Consumers in Meekertown are worse of because of the trade because the price of Meekers would rise.

Producers are better off because they would earn more profits from the sale of Meekers at the world price.

Free trade increases total surplus because of efficient production. If a country is inefficient in production, it would import . This would increase consumer surplus and if it is efficient in production, it would export increasing producer surplus.

I hope my answer helps you

7 0
3 years ago
What are two resources that may be useful in disassembling a laptop computer?
PilotLPTM [1.2K]

The user manual and the service manual are two resources that are useful in terms of disassembling the laptop computer. It is because the service manual and the user manual were able to provide instructions and specifications for repairing or being able to maintain the laptop and the way of providing a manual in having to assist a person in technical issues and use.

<span> </span>

7 0
3 years ago
Other questions:
  • 19. Regarding alternate backup sites, which of the following is a low-cost site?
    5·1 answer
  • When economists use the term ceteris paribus, they are indicating that
    15·1 answer
  • As recognized in the case in the text, Toys "R" Us, Inc. v. Canarsie Kiddie Shop, Inc., to obtain trademark protection, a descri
    14·1 answer
  • Identify which of the following statements is true. A. A corporation that accrues compensation payable to an employee must pay t
    6·1 answer
  • A company has revenue of $1000 in 2009. Our current estimate is that revenues will grow 25% per year. Our profit each year will
    5·1 answer
  • Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have
    6·1 answer
  • Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm p
    8·1 answer
  • If your content is focused on the different solutions to your buyer persona’s problem, where would that content fit into the buy
    10·1 answer
  • WGU can enroll 325 students monthly. However, due to the ratio of availability of enrollment counselors and potential students t
    12·1 answer
  • Determine the gross income of the beneficiaries in the following cases:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!