Answer:
The inflation rate of return is 3.60%
Explanation:
As we know,
Inflation rate of return = {( 1 + nominal rate of return) ÷ ( 1+ real rate of return)} - 1
= {( 1 + 15%) ÷ (1+11%)} - 1
= (1.15) ÷ (1.11)} - 1
= 1.0360 - 1
= 0.360 or 3.60%
The inflation rate of return shows a relationship between the nominal rate of return and the real rate of return. We simply divide the nominal rate of return by real rate of return
Answer:
Net Income for the year is $95,000.
Explanation:
The income which is calculated by deducting all the related expense from the revenue even after interest and taxes. Net Income is the amount which is available to distribute amount the stockholders, either preferred or common.
As we know
Net Income = Revenue - Expenses
Revenue = $164,000
Expenses = $69,000
Net Income = $164,000 - $69,000
Net Income = $95,000
Answer:
The correct answer is B
Explanation:
Bank reserve is the minimum cash which is required to kept on hand through the financial institutions so that could meet the requirements of central bank.
Checkable deposits is a kind of any demand deposit account in anticipation of the checks or the drafts in any form which will be written. In short, it means that the owner of the account could withdraw funds on demand.
So, if the primary decrease in bank reserve will also decrease the checkable deposit as there would be no cash with bank to provide to customers by the amount that is greater than the decrease in the reserve.
More loans because with lower interest rates the people pulling out the loans will have to pay the bank less money for bigger loans.
Answer:
Option D I, II and IV only are true.
Explanation:
Conflict explanation:
The reason is that their is conflict between marketing and finance that greater the marketing, the greater is the cost to the company. Similarly the greater the production of unit is, the greater is the cost to the company. The conflict between marketing and production department is that greater the marketing of the product is, the greater are the number of units of the product must be produced by the production department. So the statement 1 is correct.
What we derived from conflict explanation?
Marketing objectives can be met by the production meets the demand of the customers. This means the higher is the marketing expense the greater is the stress on production department to produce more to meet demand. This means Statement 2 is also correct.
Statement 3 is incorrect because the higher the inventory levels are, the higher are the cost to company to hold these inventories. So here we have a conflict of finance and production department.
Statement 4 is correct because the primary objective of the production department is producing more to meet the maximum number of customers need and grasp economies of scale.
