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iren [92.7K]
2 years ago
11

Match the economic scenario to the relevant characteristics. Increase in savings increase in unemployment more demand for funds

among borrowers increase in government borrowing increase in price of products economic recession economic expansion
Business
1 answer:
Elan Coil [88]2 years ago
3 0

Answer:

Economic expansion

  • Increase in savings

The economy is expanding which means that people have access to higher wages. This will enable them to save more.

  • More demand for funds among borrowers

As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.

  • Increase in price of products

With more people able to afford goods and services, prices will increase as there is now more demand for those goods.

Economic recession

  • Increase in unemployment

With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.

  • Increase in government borrowing

In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.

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Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with man
lapo4ka [179]

Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with many employees to attract demand deposits. Its interest expenses should be relatively low while its noninterest; expenses should be relatively high.

Option B

<u>Explanation:</u>

A withdrawal deposit is a banking or any other financial institution balance whereby the depositor may, without any notice or notification, remove the deposited funds from those in the account within seven days.

An example of demand deposits is checking accounts. We require the depositor to withdraw money at any moment. The volume of transactions a creditor is allowed on these transactions is infinite (even though each transaction might be paid by a bank).

For buyers, deposits of demand are essential because sometimes they house funds for daily expenses. Under no scenario, depositors could not purchase items on-demand without informing the bank first.

8 0
3 years ago
Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to
Luda [366]

Answer:

Correct option is (B)

Explanation:

Given:

Bond issue amount = $15,000,000

Market interest rate = 7.75%

Investors cannot pay interest more than $1,150,000

Choate cannot choose 6.5%, the bond will become less attractive to investors as it indicates that the bond is selling at discount.

If 7.75% interest is given that is the market interest, then interest amount would be $1,162,500 (15,000,000 × 0.0775)

Choate cannot afford to pay more than $1,150,000, so it cannot offer bonds at 7.75% or 8.1%.

The only option left is 7.65%. Interest amount would be $1,147,500 (15,000,000 × 0.0765) which is less than what the company can afford. Also, it is just marginally lesser than market interest rate of 7.75%, so bonds would still be attractive.

Choate should select 7.65%.

3 0
3 years ago
_____ refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully
IceJOKER [234]

Answer:

The explanation of this question is given below in the explanation section.

Explanation:

The correct answer to this fill in blank question is  workforce capability.

<u>The term workforce capability</u> refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully deliver products and services to customers, including the ability to meet seasonal and varying demands.

Workforce Capability:

The term “workforce capability” refers to your organization’s ability to accomplish its work processes (might include all process to produce the product or service) through the knowledge (accumulated intellectual resources of organization),  abilities, skills, and competencies of its people.

Capability may include the ability to build and sustain relationships with customers; to develop new products and work processes; o innovate and transition to new technologies; and to meet changing business, market, and regulatory demands.

8 0
3 years ago
Changes in the prices of key commodities have a significant impact on a company's bottom line. For virtually all companies, the
Anna11 [10]

Answer:

Explanation:

A) Energy can be both a fixed cost and a variable cost for a company. This is due to the sense that energy in the form of fixed electricity bill even when no production takes place (telephone bill), a fixed cost and electricity bill when production takes place would be a variable cost

B) An increment in fixed cost will shift the ATC curve to the right while the MC curve would remain the same because MC is the change in variable cost as output increases and is not related to fixed cost.

C) Corn cost is a variable cost for ethanol producer as each unit of corn is used to produce ethanol and thus use of corn is reliant upon how much ethanol is produced. This makes corn a variable input dependent on the production of output, therefore, the cost of corn is variable.

D) An increment in the variable cost will shift the ATC curve to the right and individual MC curve to the right.

5 0
3 years ago
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same
Greeley [361]

Answer:

<em>Cost per Unit  Fatboy= $  27800 </em>

<em>Screamer Cost per unit =  $3779.80   </em>

Explanation:

Howrley-David, Inc.

                               

                                        Fatboy             Screamer           Total

Units Assembled               990                 1,980                  2,970

Materials cost per unit      $ 2,600        $ 3,600

Material Costs                   2574000         7128000  

Other costs:

Direct labor                          $1069200       2138400      $ 3,207,600

Indirect materials                                                                 534, 600

Other overhead                                                                  <u>  1,603,800</u>

FoH                                     712800           1425600           2138400

Total Costs                          2752,2000    7484000

<u>No of units                             990                1980</u>

<u>Cost per Unit                       27800              3779.80   </u>

The total costs have been added and then divided with the number of units to get the cost per unit.

Direct Labor Costs  =Total Direct Labor Costs/ Total number of units* required number of units

DLC for Fatboy= $ 3,207,600 /2970 *990= $1069200

DLC for Screamer= $ 3,207,600 /2970 *1980= 2138400

FActory Overheads = Total Factory Costs/ Total Units ( Required Units)

FOH for Fatboy=  534, 600 +1,603,800/2970 * 990= 712800

FOH for Screamer = 534, 600 +1,603,800/2970 * 1980=  1425600

6 0
3 years ago
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