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3 years ago

What is the primary role of individuals as participants in the money market?

Business

2 answers:

Sindrei [870]3 years ago

7 0

Answer: Individuals purchase money market instruments via money market mutual funds

Explanation:

larisa [96]3 years ago

4 0

The primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

The Money markets constitutes financial institution who provides the money market instrument such as mutual funds to the Market participant.

The Money market are essential to the economy because the excess reserves of investment with them are lend out and this boost the money supply of the economy.

Therefore, the primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

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Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in

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Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

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3 years ago

Syd is an economist putting together an economic model to predict the outcome from particular causes and effects in the economy.

Sholpan [36]

Answer:

The correct answer is (B)

Explanation:

Economists are helpful to predict future economic and financial phenomenon’s. In that regard, statistical or mathematical models are considered more appropriate and it is said that they provide better results. In the above scenario, Syd is attempting to construct an economic model for that, the suitable technique to examine the cause and effect to predict the outcomes are mathematical functions. The reason is that mathematical models are more appropriate to predicts cause and effect.

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4 years ago

Either more sellers in the market or lower production costs can cause supply to _____ at each price level.

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Increase or shift right because if the cost of production goes down then the supplier can make more products for less money therefore making the supply of a good more. if there are more supplier then the same thing happens. more product in the market.

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3 years ago

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n the first two years your investment increases by 2.5% annually, in the third year it returns 12% but in the fourth year it goe

mote1985 [20]

Answer:

Ans. The average annual rate of return over the four years is 2.792%

Explanation:

Hi, first let´s introduce the formula to use

$r(Average)=\sqrt[n]{(1+r(1))*(1+r(2))*(1+r(3))+...(1+r(n))}-1$

Where:

r(1),(2),(3)...n are the returns in each period of time

n =number of returns to average (in our case, n=4).

With that in mind, let´s find the average annual return over this four years.

$r(Average)=\sqrt[4]{(1+0.025)*(1+0.025)*(1+0.12)+(1-0.07))} -1=0.022792$

Therefore, the average annual return of this invesment in 4 years is 2.2792%

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