All categories

3 years ago

If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is:______

Business

1 answer:

Kisachek [45]3 years ago

8 0

Answer:

The real interest rate = - 4 percent

Explanation:

Given:

Nominal interest rate = 6 percent

Rate of inflation = 10 percent

Find:

The real interest rate

Computation:

The real interest rate = Nominal interest rate - Rate of inflation

The real interest rate = 6 - 10

The real interest rate = - 4 percent

You might be interested in

When McDonald's started customizing its product offerings to suit differing regional tastes, such as offering vegetarian product

bezimeni [28]

Answer:

The correct answer is (A) Localization strategy

Explanation:

It is one of the most important strategic decisions that companies make. Localization can also influence other costs such as taxes, wages, raw materials and income. Companies make location decisions infrequently, usually because demand has exceeded the current capacity of the plant or due to changes in labor productivity, exchange rate, costs or local attitudes. Companies also relocate their manufacturing facilities or services due to demographic changes or consumer demand. Location alternatives include (1) expanding an existing installation instead of moving it; (2) maintain the current sites while opening facilities somewhere else, or (3) close existing facilities and move to a new location.

The location decision often depends on the type of business. For industrial location decisions, the usual strategy is to minimize costs, although innovation and creativity can also be critical. For retail organizations or professional services, the strategy focuses on maximizing revenue. However, the warehouse location strategy can be guided by a combination of costs and speed of delivery. The objective of the location strategy is to maximize the benefit of the location for the company.

3 0

4 years ago

Chemical Mines has 5,000 shareholders and is preparing to elect two new board members. You do not own enough shares to personall

topjm [15]

Answer:

Chemical Mines

The most likely outcome of this situation given that some shareholders are happy with the existing management is:

A) proxy fight for control of the board.

Explanation:

Proxy fight is a competitive struggle that shareholders of Chemical Mines can engage in to support their factional sides by using proxy votes to gain control of the board of directors, thereby stirring decisions to their sides. Proxy votes are the votes of shareholders elected to represent the absentee shareholders by those present at the annual general meeting, where directors can be appointed.

6 0

3 years ago

What is product positioning?

Anna35 [415]

Answer:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors and different from the concept of brand awareness.

3 0

3 years ago

He Silver Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Departme

Troyanec [42]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Dept.A Dept.B

Direct labor cost $ 63,000 $ 40,000

Manufacturing overhead $ 80,010 $ 68,450

Machine-hours 4,700 18,500

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Departement A:

Estimated manufacturing overhead rate= 80,100/63,000= $1.127 per direct labor cost

In % terms= 127% of direct labor cost.

Department B:

Estimated manufacturing overhead rate= 68,450/18,500= $3.7 per machine hours

3 0

3 years ago

You read that inflation for the foreseeable future expected to average 6% a year. You are trying to accumulate funds to start a

inna [77]

ANSWER – D (put the money in a savings account regardless of the interest, because any positive rate will reduce the negative impact of inflation on the accumulated savings)

It is established that any positive rate (interest) on accumulated savings, no matter how little it is, reduces the negative impact of inflation. This means that even the minutest interest paid by a bank, though it may not alleviate the negative impact of inflation, is still better than nothing.

3 0

4 years ago

Read 2 more answers