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3 years ago

Why is a higher interest rate important when saving money

Business

2 answers:

Helen [10]3 years ago

7 0

Answer:

Explanation:

I believe it is C. because I'm pretty sure its talking about the interest which is where you receive some money from the bank for keeping you money there or whatnot.

QveST [7]3 years ago

4 0

The answer I think is D or A

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What is easy-access credit

inysia [295]

Answer:

This is very short term credit with high interest.

Explanation:

Examples of this include things like payday loans.

7 0

3 years ago

Read 2 more answers

When the Federal Reserve sells government securities on the open market, what effect does this action have on the nation's

lukranit [14]

Answer:

Money Supply - Decreases / Interest Rates - Increase

Explanation:

Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.

Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.

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4 years ago

What words come to mind, both positive and negative, when you think about budgeting?

Svetlanka [38]

Answer:

Positive:

-Managing money

-Saves money for other things

Negative:

-May be hard to budget if you need a lot

Hope this helps! These are just what come to mind in my opinion.

4 0

3 years ago

A list of concepts are provided below. Select the appropriate description for the concept.

STALIN [3.7K]

Answer:

1. Cash-basis accounting - Companies record revenues when they receive cash and record expenses when they pay out cash.

Unlike in Accrual basis accounting, here revenue is recognized when the money is paid regardless of if the payment for services comes after a year. The same goes for expenses. Tax authorities use the Cash basis.

2. Fiscal year - An Accounting time period that is one year in length.

This is the Accounting period for a firm. It runs for 12 months and depends on when they started business or when they want to report financials.

3. Revenue recognition principle - Recognize revenue in the accounting period in which a performance obligation is satisfied

This falls under the Accrual basis of accounting. It is recommended by GAAP. Revenue should be recognized only when the service has been accomplished regardless of when actual payment is made.

4. Expense recognition principle - Efforts (expenses) should be matched with accomplishments (revenues).

Follows the same premise as the Revenue recognition principle. Recognize expenses when incurred and should be matched to revenues.

8 0

4 years ago

A. On 8/6/10 the company purchased some additional equipment from a restaurant that closed the previous month. The equipment was

Assoli18 [71]

Answer:

Explanation:

If On 8/6/10 the company purchased some additional equipment and the equipment was valued at $10,000 for which the company signed a two-year 6% note payable to Evian Sprinter with no payment due until maturity.

Then the amount to be recorded as at today is a discounted value which is the present value of the amount the asset is purchased

PV = FV/(1+R)^2

PV = 10,000/(1.06)^2 = $8,900

Therefore acquisition date entry will be

Dr. Equipment....8,900

Cr. Future Obligation....8,900

At the end of 2010 we record the unwinding of the interest which is for 6 months

That will be calculated as 6% of 8900 * 6 months /12 months = 267

Dr. Interest Expense....267

Cr. Future Obligation........267

Being the unwinding of the interest for year to date on future obligation on equipment purchase.

At the end of 2011 we record the unwinding of the interest which is for the year

That will be calculated as 6% of (8900+267) = 550

Dr. Interest Expense....550

Cr. Future Obligation........550

Being the unwinding of the annual interest on future obligation - equipment purchase.

At the end of 2012 we record the unwinding of the interest which is for the 6 months in 2012

That will be calculated as 6% of (8900+267+550) *6/12 = 291

Dr. Interest Expense....291

Cr. Future Obligation........291

Being the unwinding of the interest for balance 6 months in 2012 on future obligation - equipment purchase.

Hence at the end of the two years the total amount = 8900+267+550+291 which gives approximately $10,000 as the future obligation to be settled

5 0

3 years ago