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3 years ago

A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real

Business

1 answer:

dmitriy555 [2]3 years ago

6 0

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

Fixed nominal interest rate = 13%

Real interest rate for the bank's profit margin = 10%

Inflation rate = 3% (13% - 10%)

Unanticipated inflation rate = 7%

Nominal interest rate = 17% (10% + 7%)

But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.

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What is the difference between commodity money and fiat money?

Eva8 [605]

Answer:

Please see answer in the explanation below

Explanation:

Commodity money can be defined as money that its value comes from the commodity with which it was made. That is, commodity money is money that is gotten as a result of the material from which the money was made. Examples of these materials are silver, gold, etc. These materials have intrinsic value on their own as the materials have a worth of their own before being used to make currency.

Fiat money on the other hand is defined as money that is declared as the legal tender by the government. That means that fiat money is the money that is acceptable as a medium of exchange for goods and services as issued by the government. Fiat money does not have intrinsic value.

Cheers.

6 0

3 years ago

A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage

Veseljchak [2.6K]

Answer:

The equivalent units of production for the month is 11,850 units

Explanation:

The computation of the equivalent unit is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (8,900 units × 100%) + (5,900 units × 50%)

= 8,900 units + 2,950 units

= 11,850 units

For computing the equivalent units,we have to consider both the units which are mentioned in the question.

7 0

3 years ago

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different

Rasek [7]

Answer and Explanation:

d. 24

3 0

4 years ago

Which strategy are you using when you only read the title, section headings, and captions? A. guessing from context B. paraphras

brilliants [131]

The strategy would be C. previewing

8 0

3 years ago

Read 2 more answers

Bluestone Company had three intangible assets at the end of the current year:

ra1l [238]

Answer:

Bluestone Company

a. The acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. The amortization of each intangible asset for the current year ended December 31:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

c. Balance Sheet as of December 31, of the current year:

Intangible Asset:

a. Patent $3,600

b. Trademark 8,000

c. Licensing Rights 90,000

Total Intangible $101,600

less amortization 15,300

Net book value $86,300

Income Statement for the year ended December 31 of the current year.

Amortization Expenses:

a. Patent $300

c. Licensing Rights $15,000

Explanation:

a) Data and Analysis:

a. Patent $3,600 Cash $3,600

b. Trademark $8,000 Cash $8,000

c. Licensing Rights $90,000 Cash $90,000

a. Acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. Amortization of each intangible asset:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

8 0

3 years ago