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tresset_1 [31]
3 years ago
13

Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar torise

in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will thereforefall , and the number of foreign products purchased by domestic consumers and firms (imports) willrise . Net exports will thereforefall , causing the quantity of domestic output demanded tofall . This phenomenon is known as theexchange rate effect
Business
1 answer:
Akimi4 [234]3 years ago
7 0

Answer:

rise, fall, rise, fall, fall, exchange rate

Explanation:

When there is a change in the level of price it will cause the real value to change as well. This is due to the fact that real value is basically relative price i.e., nominal value adjusted by inflation.

This rise in price effects the demand for exports, which in return falls due to higher goods rates. And the effect is opposite for imports which would now rise. The combination effect of imports and exports results in the change in the net exports which would also fall due to rise in imports and fall in the exports. Overall, this effect is known as the exchange rate effect.

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Currently the price of Titanic stock is $20 a share. You have $40,000 of your own funds to invest. Using the initial margin of 5
PtichkaEL [24]

Answer:

The percentage profit if you purchase the stock and it rises to $30 a share

= $166.67

Explanation:

Titanic stock is $20 a share. You have $40,000 of your own funds to invest.

∴ $4,000.00/$20 = 200.00 shares were bought with $4,000.00

With margin of 50 percent and maintenance margin of 30 percent,

50% + 20% = 80%

∴  New Cost of Stock ($30.00) ÷ $4,000.00)

= $133.33 X 0.80

= $166.67

6 0
3 years ago
The buyer, seller and broker all agree that the buyer's money will be placed in an interest-bearing account because the buyer is
Readme [11.4K]

Answer:

The broker cannot do this since

Explanation:

There are two main errors in this proposal:

  1. the escrow account can be an interest bearing only if deposit 20% or less of the purchase price of the property. Apparently in this case the property was being sold at $1.5 million, so the escrow account should only hold $300,000 in an interest bearing account.
  2. second, real estate commissions forbid brokers and agents from receiving interest from an interest bearing escrow account unless they are the owners of the property (the sellers or lessors depending on the operation).

7 0
3 years ago
Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the result
svetlana [45]

Answer:

Sandollar - Yes

Salty Dog - Yes

Baytowne - No

Explanation:

(See attachment)

Given

Total Fair Value = $510,000 --------- Sandollar

Total Fair Value = $580,000 --------- Salty Dog

Total Fair Value = $560,000 -------- Baytowne

Calculating Carrying Value of Sandollar

Carrying Value = $181,000 + $197,000 + $138,000 + $186,600 - $44,500

Carrying Value = $658,100

Calculating Carrying Value of Salty Dog

Carrying Value = $246,00 + $234,000 + $91,500 + $206,950

Carrying Value = $778,450

Calculating Carrying Value of Baytowne

Carrying Value = $186,000 + $0 + $73,500 + $134,500

Carrying Value = $394,000

We then compare the total Fair Value with total carrying Value of each unit.

If the total Fair Value is lesser than the total carrying Value then there is potential Goodwill impairment

Else, there's no potential Goodwill impairment.

Sandollar

Is $510,000 > $658,100 No

Then Yes, there's potential goodwill impairment

Salty Dog

Is $580,000 > $778,450 No

Then Yes, there's potential goodwill impairment

Baytowne

Is $560,000 > $394,000 Yes

Then, No there's no potential goodwill impairment.

4 0
3 years ago
Read 2 more answers
As a​ rule, product decisions are likely to be highly involving if the consumer believes there is a great deal of​ ________. thi
Stella [2.4K]

If there is a high level of PERCEIVED RISK, then consumers will take more time and effort in making a decision.

Think for example buying a house versus buying a soda.

There is not much thought needed when you are buying a soda. Choose which brand and what size, you are done.

When buying a house, because it is both more complex and more expensive, there is a greater perceived risk of losing money. When buying a home, it is a large investment and carries much risk, therefore the consumer will take more time and effort evaluating the purchase decision.

8 0
3 years ago
The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expen
Naya [18.7K]

Answer:

The correct answer is Congruence.

Explanation:

Any company that makes its financial statements available to the public will conform to GAAP standards. The congruence principle is one of the fundamental lines established by the Financial Accounting Standards Board (FASB) This process is different from the cash accounting principles that the total amount of income or expenses is recorded regardless of when They have an impact on the cash flow of the company. The GAAP congruence principle helps to provide a clear and accurate picture of cash on hand, the revenue generated and expenses incurred at a specific point in time (see Resources below).

In order to minimize errors and provide accurate account information during the accounting period, companies can recognize expenses and revenues that occur within a time-giving period. The GAAP congruence principle recognizes expenses when they are incurred, and when it distinguishes between deferred income and accrued expenses in order to determine its real value of the company at a given time.

6 0
3 years ago
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