Is this supposed to be a question?
Answer:
November 30
Explanation:
According to the revenue recognition principle, revenues are recognized when they are realized or realizable, and are earned no matter when cash is received.
Answer:
The answers is: 3. A new technology like the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Given there is higher demand for investment opportunities, borrowers in the economy will compete for funding while there is no change in the supply of funding, moreover, inflation rate has been constant which will finally lead to the increase in nominal interest rates.
1. Households reduce their consumption and increase their savings is not correct because higher saving will decrease interest rate as there is higher supply of funding.
2. There is a decrease in expected inflation is not correct as nominal interest rate is most likely to go down to keep real interest rate constant.
4. The economy falls into a recession is not correct as the situation will stimulate more saving and less consumption, less investment. Moreover, the Central Bank may also implement loose monetary policy which will decrease Nominal Interest rate.
5. The Federal Reserve decides to try to stimulate the economy is not correct as Federal Reserve will inject money into the economy, subsequently, nominal interest rate will go down.
Answer:
See explanation
Explanation:
The impact of the near failure of Bear Stearns resulted in financial crisis which shook global economy. This financial crisis almost brougt recession to Nations. Lehman Brothers on the other hand, crashed the stock market which caused problems on the S$P index.
The Treasury Department pumped more money into the economy in attempt to help Bear and Stearns but the two banks still failed leading to loss of money.
The failure of Lehman Brothers is termed the largest Bankruptcy in the history of U.S. The bankruptcy affected financial markets greatly.
Money Markets can be defined as the market that provides short term funds to the players. it is not regulated like the capital markets but it is also a component of the economy.
