<span>An economic system is a system of production, resource allocation, and distribution of goods and services within a society or a given geographic area.</span>
Answer:
Paying salaries to employees is a cash out flow and an operating activity
Receiving cash for services it will perform in the future is a cash inflow and an operating activity
Pays back principal on a bank loan evidenced by a promissory note is a cash outflow and a financing activity
Sells equipment previously used in business for cash is a cash inflow and an investing activity
Cash purchase of equipment to be used in business is a cash outflow and an investing activity
Payment of cash dividend to the stockholders in a cash outflow and a financing activity
Explanation:
Answer:
$33.50
Explanation:
we can use the perpetual growth model to determine the price of the stock
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³
the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50
Answer: The most correct Option is option A) is problems in emerging market economies as a result of bond market instability.
Explanation: The question explains why it has been difficult for a nation to control the value of it's money, so as to achieve a fixed exchange rate with other currencies. This is because the bond market is not stable. This bond market is what the central bank uses to control the flow of money into the economy, to avoid depreciation or inflation of the economy. Because the market is not stable due to the rate of bond demand is not stable. This will make it difficult for the central bank to keep a fixed rate of MPR (monetary policy rate) and loans.
Even though all the options are related to the issue, but option A. is directly linked to the question. This can be seen by someone, that the central banks are having brain drain, because it is one of the major issue all central banks are facing. It can also be seen as a reason why money fluctuate. It can also be seen that nation's has ignored to Source more form of regulating money. But due to the fact that bond market instability is the major problem leading to all this. Option A. still remains the answer.
