Answer: The correct option is "c.exercising an in-the-money put option".
Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.
because he would be paying the debt with the participation in the equity of the company.
An unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
<h3>What do you mean by material quantity variance?</h3>
The material quantity variance refers to the difference between the standard amount and the actual amount of materials used in the production process.
The material quantity variance yield unusual results as it is based on a standard unit quantity that is not even close to the actual usage.
Therefore, an unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
Learn more about Material Quantity variance here:
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<span>Hours of labor or number of workers are common ways of measuring a company's_______?
</span><span>
Productivity
</span>
Answer and Explanation:
As per the data given in the question,
The central bank have various tools to apply expansionary policy and these tools are :
- Reserve ratio.
- Discount rate.
- Open market operations.
The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.
Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.
Explanation:
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