Answer:
B) $5,000
Explanation:
Cypress total bill is $1,000,000. Since a foreign bank is going to provide them a service (the acceptance of payment) it will charge them 1.4% per year or 0.7% for thee six month period.
That means that Cypress will collect $1,000,000 x (1 - 0.7%) = $993,000
If Cypress decides to sell the bankers acceptance at a 1% annual fee, he will lose an additional 0.5% for the 6 month period = $930,000 x 0.5% = $4,965. Apparently we have to round to the nearest thousand ≈ $5,000
Answer:
Employment insurance compensation increases the opportunity cost of being
unemployed.
Explanation:
The Employment insurance program is the benefit that is provided temporarily to the people who do not have jobs or had lost their jobs of no fault of their own. This program helps the unemployed with financial help temporarily so that they can survive and search for another jobs.
The compensations provided from the employment insurance encourages the people for a longer job search and better match between the employees and the jobs. This financial aid is provided for up to a maximum of 26 months and for 1/3rd of one's latest salary. The demand and supply curve for te labor is shifting constantly.
Thus the incorrect statement is :
Employment insurance compensation increases the opportunity cost of being
unemployed.
Answer:
D. cognitive conflict
Explanation:
Cognitive conflict is a kind of conflict that arises due to someone who tends to provide information different from the one believed by the individual. Basically when one tries to alter the perception an individual has towards any kind of topic and that the belief is tried to be changed by providing extra information, then the individual might get into "cognitive conflict".
As the conflict does not result in any kind of permanent differences but rather just for that particular topic the individual feels to be in different opinion.
Answer: -$100
Explanation:
Value of forward contract = Selling price - Forward price on bond
Forward price = Present value of cashflows + Present value of bond
Periodic rate = 7%/ 2 = 3.5% per semi annum
= 8% / 2 = 4%
3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.
= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)
= $1,020.342
= $1,020
Value of forward contract = 920 - 1,020
= -$100
Answer:
(i)New firms will enter the market.
(iii)In the long run, all firms will be producing at their efficient scale
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market price is set by the forces of demand and supply.
If firms are earning positive profits, in the long run new firms would enter into the industry and this woold drive positive profits to zero. As a result , firms would be operating at the efficient scale.
I hope my answer helps you
