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3 years ago

What are bank notes in economics?

2 answers:

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Banknote is a negotiable promissory note which one party can use to pay another party a specific amount of money. A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note.

zmey [24]3 years ago

6 0

Answer:

A banknote is a negotiable promissory note which one party can use to pay another party a specific amount of money. A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note.

You might be interested in

Why can it be a negative for the US if the dollar is too 'strong' ?

Nataly_w [17]

It discourages investment from foreign sources

5 0

3 years ago

Read 2 more answers

Why is cash flow important to government entities? How does an administrator plan for cash flow? What tools are available for th

vodka [1.7K]

Answer:

Cash flow is important to government entities because:

As with non-government entities, cash flow is important to government organizations because it is required for the operations of any organization regardless of whether they are government-owned or not, for-profit or not.

The measurable difference in the cash balance of any organization from one period to the next is referred to as Cashflow. No business or entity can continue operations if they keep taking out or spending more cash than they can make.

An administrator can plan for cash flow using a Cash Flow Planner.

This can take the form of a simple excel spread sheet with one column showing on one side all the monies that one is expecting to come in (Account Receivables) and an adjacent column showing all the monies one is expecting to pay out (Account payables).

At the bottom of the excel, you can show the bank balance.

There are specialised apps that help perform this function. An example would be Quickbooks, Planware, Cash Flow Planner, etc.

Cheers!

6 0

3 years ago

g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits

arsen [322]

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

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3 years ago

A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for moldi

atroni [7]

Answer:

Check the explanation

Explanation:

Going by the question above we will have to first work on the

Formulation of LP:

Maximize profit

Z = 1.5A+1.5B where A - number of units of product A and B - number of units of product B

subject to constraints -

600 minutes available for molding

3A+2B <=600 ---> Molding constraint---> 1

600 minutes available for painting

2A+4B<=600 ---> Painting constraint---> 2

420 minutes available for packing

A+3B<=420 ---> Packing constraint---> 3

A, B, C >=0 ---> Non-negative constraint ---> 4

b) Solution with the help of Excel solver:

Target cell will be the RHS or profit value of the objective function as we are maximizing the profit.

Changing cells will be A and B ---> number of units of products

Constraints will be entered as below. The same are also listed in part A (1,2,3,4).

The attached images below are the formulation.

6 0

3 years ago

The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current outp

mafiozo [28]

Answer:

c. decrease monthly output to 200 board feet.

Explanation:

If the firm wants to maximize profit it should decrease monthly output to 200 board feet demand by doing so , vital rate will ultimately increase the cost of the product and shift them to the profit. The correct answer is C.

7 0

3 years ago