Answer:
In the period since the financial crisis of 2007-2009, inflation has been low in many countries, while a few experienced outright deflation. Why might unexpected deflation be of particular concern to someone managing a bank? Unexpected deflation is associated with (falling net worth) of borrowers, as the nominal value of their assets (falls) but the dollar amount of their liabilities (remains the same) . This weakens creditworthiness and can lead to (reduced) lending as asymmetric information problems worsen. In turn, ( reduced) credit supply can diminish economic activity, leading to (increased) defaults, a deterioration in the quality of the bank’s balance sheet and ultimately to bank insolvency.
Explanation:
Deflation is described as a period where there is persistent fall in prices of good and services, this affects different people like pensioners, lenders and borrowers in different ways.
Answer:
a. $300,000
Explanation:
Calculation
Calculation for the differential revenue from the acceptance of the offer
Using this formula
Differential revenue= Units of offer received× Amount per unit
Let plug in the formula
Differential revenue=20,000 units× $15 per unit
Differential revenue=$300,000
Therefore the differential revenue from the acceptance of the offer will be $300,00
Answer:
never
Explanation:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Answer:
a. 138,000
Explanation:
Equivalent Units of Production (FIFO method)
Whole % Completion Equ. units
Units Dir. Mat.
Beg. Work in process (100% - 70%) 10,000 30% 3,000
Started & completed (140,000-10,000) 130,000 100% 130,000
Ending Work in process 20,000 25% <u> 5,000 </u>
Total Equivalent units <u>138,000</u>
