<span>Marketing costs are not a financial cost of a recall. Marketing involves the process of getting offerings out to consumers who would likely purchase the item (or whom the company would like to purchase the item). Here, with a recall, the company is not attempting to sell anything new, but rather, they are attempting to fix a manufacturing defect.</span>
Answer:
c. will be able to make new loans up to a maximum of $9.50
Explanation:
If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.
Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.
Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.
Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.
Answer:
a.capability
Explanation:
Based on the information provided within the question it can be said that the vendor selection criteria described is their capability. This basically describes what the vendor is "capable" of providing to the customer in order to serve as a "value" to the vendor's store and bring in more customers that pay for those services.
Answer:
The correct answer is 4.
Explanation:
Actuarial gains and losses are better understood in the context of global pension accounting. Except when specifically indicated, this definition refers to pension accounting under generally accepted accounting principles in the United States (GAAP). While the US GAAP and the International Financial Reporting Standards (IFRS) prescribe similar principles for measuring pension benefit obligations, there are key differences in the way in which the two standards inform the cost of pensions in the income statement, in particular the treatment of actuarial gains and losses.
Answer:
a. U.S. Company should use a short forward contract to hedge currency risk.
b. $0.5931
c. A gain of $0.0456 is recognized by the company
Explanation:
a. As the company will receive settlement in Swiss francs in three months time, the currency risk is at the time of settlement receipt, Swiss francs will not be worth as much as it is expected against US dollar (or depreciated against USD). Thus, the company has to take the short position in forward contract to sell Swiss francs in three months time at predetermined rate.
b. We have F = S0 x ( 1+ USD rfr ) ^(90/365) / (1+ Swiss franc rfr) ^(90/365) = 0.5974 x 1.02^(90/365) / 1.05^(90/365) = $0.5931.
c. Value of the gain in the short position will be calculated at the time of 60-day-remaining to maturity as followed:
F at the beginning/ ( 1+ USD rfr) ^ (60/365) - Spot rate at the 60-day-remaining to maturity/ (1+ Swiss franc rfr) ^(90/365) = 0.5931/1.02^(60/365) - 0.55/1.05^(60/365) = $0.0456.
