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3 years ago

if, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will

Business

1 answer:

ohaa [14]3 years ago

3 0

Answer:

Explanation:

If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will: rise, causing households and businesses to hold less money. Other things equal, if the supply of money is reduced: bond prices will fall because interest rates will rise.

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According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual

Paha777 [63]

Answer:

A) True

Explanation:

The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.

Return earned by a portfolio is the weighted average return of the individual stock returns.

CAPM helps calculate expected return of an investor by the following formula:

$Return = R_{f} \ + B(R_{m}\ -\ R_{f} )$

wherein, $R_{f} =$ Risk free rate of return yielded by treasury bonds

B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.

$R_{m}=$ Return which can be earned on market portfolio

Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.

6 0

3 years ago

Exercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 160 suites. Its regular suit

zysi [14]

Answer:

If the special offer earns a positive contribution margin, we should accept the special order.

Explanation:

Given that,

No. of suites in luxury hotel = 160

Regular suite rate = $210 per night per suite

Hotel’s cost per night = $135 per suite

Variable direct labor and materials cost = $36

Fixed cost = 99

Total cost per night per suite = $135

Contribution margin per night per suite:

= Room rate per night - Variable cost per night

= $94 - $36

= $58

Contribution margin from special offer:

= Contribution margin per night per suite × Number of nights × Number of suits

= $58 × 3 × 45

= $7,830

Management should accept the special offer.

When the company receives offer, the hotel is running at low season. occupancy rate is 55%

If the special offer earns a positive contribution margin, we should accept the special order.

Room rate is $94 for special order.

8 0

3 years ago

For a not-for-profit private animal rescue agency, which account should be credited to record a gift of cash from an outside par

sesenic [268]

Answer:

Unrestricted net assets - contributions

Explanation:

Unrestricted net assets are donations made to any nonprofit organization (in this case the animal rescue agency) that can be used for unrestricted general expenses. The rescue agency can use this money for their normal day to day expenses or for whatever other expense that they consider necessary without any type of restriction.

While restricted net assets are donations that must be used for an specific purpose set by the donor.

8 0

3 years ago

Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b)

salantis [7]

Answer:

1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000, it is probable that Huprey will lose the case.

Record a liability.

2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.

Disclose in notes.

3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case.

Have no disclosure.

Explanation:

Contingent liabilities must be recorded only when it is probable that the liability will happen and you can estimate the associated costs.

When contingent liabilities are only reasonably possible or you cannot estimate the amount, they must be included in the footnotes of the financial statements.

When contingent liabilities are not reasonably possible, nothing needs to be disclosed.

7 0

3 years ago

As the workforce becomes more diverse, why does performance appraisal become a more difficult process?

Olenka [21]

Answer:

Performance appraisal in a company with diverse workforce becomes difficult because of some cultural biases that may exist between the manager, who is doing the appraisal, and the diverse workforce. This problem becomes more acute if the manager is culturally biased and discriminatory by practise.

Explanation:

Company A can have a diverse workforce if it is made up of employees from culturally different places working together in the same workplace. Bias often arises due to human cultural nuisances. This becomes more obvious where managers are from some particular cultures while the employees are from mixed cultures. In such situations, the managers need to be retrained to enable them embrace cultural diversity in the workplace and in performance evaluation.

6 0

4 years ago