The Cash flow on total assets ratio equals 3.8%.
Cash flow on total assets = cash flows from operations / average total assets
= 139,000 / 3,640,000 = 3.8%
A measure of profit called cash flow on total assets measures actual cash flows to the assets of the business without taking into account income recognition or income measurements. By dividing operating cash flows by average total assets, one can obtain the cash flow on total assets ratio. There may be a considerable reason for concern if the ratio falls below 10%. For a business to sustain long-term growth, it is necessary to have a positive cash flow, which essentially implies that more money goes into the till than it does out.
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Let's call
x = Amount of candy sold at $ 0.15.
y = Amount of candy sold at $ 0.08.
We must make the following system of equations:
x + y = 17
0.15x + 0.08y = 1.92
Solving the system of equations:
0.15x + 0.08 (17-x) = 1.92
0.15x-0.08x + 1.36 = 1.92
0.15x-0.08x = 1.92-1.36
0.07x = 0.56
x = 0.56 / 0.07 = 8
On the other hand,
x + y = 17
8 + y = 17
y = 17-8 = 9
Finally, Timmy bought 8 pieces of candy for $ 0.15.
Answer:
c. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented.
Explanation:
A monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
Generally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).
Typically, a monetary policy can be implemented quickly by the central bank of a particular country, but most of its impact on aggregate demand occurs months after policy is implemented.
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