Answer: b. funds provided by borrowing.
c. funds provided by the sale of assets.
d. funds provided by issuing common or preferred stock.
Explanation:
The financial statement consists of two main components which are the balance sheet and the income statement. The balance sheet simoly shows the financial standing of a firm.
Of the options, those that can found in the balance sheet are:
b. funds provided by borrowing.
c. funds provided by the sale of assets.
d. funds provided by issuing common or preferred stock.
Answer:
Deceptive pricing
Explanation:
By telling customers that the original price is $40 when it is really $25, High Tea is making their $20 price seem like a much better deal when it really has less value than they are advertising.
Answer:
c) increase; decrease
Explanation:
Macro prudential policies or regulations basically aim for company's entire financial risk management. This tries to regulate the risk by various steps and measures.
In the given case also,
By increasing the capital requirements during the expansion because expansion would result in great performance and that decreasing the capital requirements during the down turn as the performance would not be good.
Explanation:
Utility function is given by U=F^0.5C^0.5
Find the MRS which is -MUF / MUC
MUF = dU/dF = 0.5F^-0.5C^0.5
MUC = dU/dC = 0.5F^0.5C^-0.5
Now MRS = -(0.5F^-0.5C^0.5) / (0.5F^0.5C^-0.5)
= -(C^0.5C^0.5)/(F^0.5F^0.5)
= - C/F
From the budget constraint, we have slope = -Price ratios = -coefficient of F / coefficient of C = -2/1 or -2.
At the optimal choice, utility function is tangent to budget line so MRS = slope of budget line
- C/F = -2
C = 2F
Use C = 2F in the budget equation
120 = 2F + 2F
120 = 4F
F = 120/4 = 30 units
Then C = 2F = 2*30 = 60 units
Hence her optimal bundle of consumption should be 30F and 60C
(This is the correct answer. For a generalized results, I have attached the derivation of formulas)
