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2 years ago

What should be the function of money? What do you mean by M2?

1 answer:

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Money is any object in which you can exchange for goods or services. We consider this currency. Money is also a store of value so that you can get those goods and services at a later time (so you don't have to immediately use up the currency right away if you don't need to).

If at some future date, the unit of money isn't able to purchase as much as it used to, then we say that inflation has occurred. For example, if a loaf of bread costs $1 today but then $5 ten years from now, then we say inflation has kicked in.

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Before we talk about M2, it helps to start with M0. That's a zero and not the letter 'oh'. In economics, M0 is the total collection of all cash (bills and coins) that are in circulation. This means we're just talking about physical things people can touch. Building to M1, it involves everything M0 talks about plus things like travelers checks and demand deposits. So if you're talking about M1, then you involve all physical cash as well.

Then finally moving to M2, it involves everything M0 and M1 does, plus savings accounts and time deposits. By "time deposits", I mean things like mutual funds and money market accounts. Basically things you may hear about when talking about wall street.

In short, M2 involves all physical cash plus other electronic stores of value (this is a fairly vague definition but it may work in many settings). It does not involve large time deposits as that is what M3 handles.

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To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and

levacccp [35]

To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

<h3>What are post audits?</h3>

The post-audit procedure establishes a formal process (feedback) for assessing whether existing initiatives should be continued, extended, or discontinued.
That is, the post-audit gives useful information that can be used to fix problems before an investment's performance is jeopardized.
The purpose of the post-audit review process is to ensure that management has addressed all of the recommendations given in the Audit Report.
The Post-Audit Review occurs shortly after the agreed-upon implementation deadline, which management committed to in the management response.

Therefore, to partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

Know more about post audits here:

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1 year ago

After years of using a mass marketing strategy, Digital Print Shops has responded to new competition from national chain stores

Kisachek [45]

Answer:

The answer to this question is B. Niche marketing

Explanation:

Niche marketing involves identifying and exploiting a small segment of a larger market by developing products to suit it. identifying and exploiting a small segment of a larger market by developing products to suit it.

A niche market cater for the unique demands that aren't being addressed by mainstream providers. Organisations pursue niche markets as a way to build loyalty and revenue with a largely-overlooked audience.

We can therefore conclude from the explanation in the questions as regards the activities of Digital Print Shops that it using a Niche marketing strategy

Hence the answer is B. Niche marketing

4 0

3 years ago

Read 2 more answers

Sigma Corporation owns 80% of the stock of Epsilon Corporation, which pays it a dividend of $100,000. Sigma Corporation also own

kvv77 [185]

Answer:

d. $132,000

Explanation:

Sigma Corporation holds the stock of Epsilon Corporation and is subsidiary for the Sigma. The dividend declared by of $100,000 is entirely for the sigma whereas Sigma Corporation also holds 20% of the shares of Intergalactic Corporation. The dividend of $40,000 will be calculated in the dividend amount of Sigma but 20% will be deducted.

$100,000 + $40,000 * 80% = $132,000

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3 years ago

4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton falls substantially. The demand

antoniya [11.8K]

Answer:

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

This is because it is temporary and people in the affected sector could opt for jobs in other performing sectors of the economy.

Explanation:

Suppose the world price of cotton falls substantially, the following scenario will ensue.

The demand for labor among cotton-producing firms in Texas will reduce .

The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will also decline .

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

Frictional unemployment is seasonal employment that could occur when there is no demand or work period is completed unlike structural unemployment that can last for long.

It is a temporary unemployment situation because workers in the cotton industry could opt for jobs in other performing sectors of the economy.

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2 years ago

Marilyn County operates on a calendar year basis. It uses a Capital Projects Fund to account for major capital projects and a De

mr Goodwill [35]

Answer:

Marilyn County

1. Journal Entries:

1. January 1, 2013,

Debit Capital Projects Fund $1,000,000

Credit General Obligation Bonds Payable $1,000,000

To record the issuance of bonds, payable in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2013, with interest of 4 percent per annum paid on the outstanding debt.

2. May 1,

Debit Capital Projects Fund $20,000

Credit General Fund $20,000

To fund the additional project costs.

3. July 1

Debit Construction of Community Center $1,020,000

Credit Capital Projects Fund $1,020,000.

To record the payment to the contractors for completed construction of Community Center with estimated 20 years useful life.

4. September 30, 2013

Debit Debt Service Fund $70,000

Credit General Fund $70,000

To transfer funds for debt service.

5. October 1:

Debit Bonds Payable $50,000

Debit Interest on Bonds Expense $20,000

Credit Debt Service Fund $70,000

To record the payment of the debt service with semi-annual interest.

2. Governmental activities column of the government- wide financial statements:

Capital assets $1,020,000

Reduction of Liabilities $950,000 ($1,000,000 - $50,000)

Payment of debt service and interest $70,000

3. December 31, 2013, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt (950,000)

Invested capital assets, net $70,000

4. December 31, 2014, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt (850,000)

Invested capital assets, net $170,000

Explanation:

a) Data and Analysis:

1. January 1, 2013, Capital Projects Fund $1,000,000 General Obligation Bonds Payable $1,000,000

2. May 1, Capital Projects Fund $20,000 General Fund $20,000

3. July 1 Construction Contract $1,020,000 Capital Projects Fund $1,020,000.

4. September 30, 2013 Debt Service Fund $70,000 General Fund $70,000

5. October 1, Bonds Payable $50,000 Interest on Bonds Expense $20,000 ($1,000,000 * 4% * 6/12) Debt Service Fund $70,000

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3 years ago