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PilotLPTM [1.2K]
3 years ago
12

What are the potential risks of having all three of these buckets (savings, investments and debt payments) belong in the same ca

tegory?
Business
1 answer:
Vlad [161]3 years ago
5 0

The potential risks that these three groups fall into the same category is that it is a low percentage and it is not a realistic proposition.

According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:

  • 50% of salary must go towards mandatory expenses (housing rent payments, utilities, medical care, basic food, and transportation).
  • 20% of the salary must be used for savings and debt payments (programmed savings for old age or a special event, or the payment of debts such as card payments, bank loans, among others).
  • 30% of the salary must be allocated for non-priority expenses (it is the expenditure of money on experiences, objects, or others that are not essential for the individual).

This income distribution is unrealistic because most people spend more than 50% of their salary on compulsory expenses, reducing their economic capacity for other purposes.

In this way, the 20% destined to savings and payment of debts would be a minimum amount of the salary, which could have serious consequences such as:

  • Inability to pay debts
  • Inability to save for the future

Learn more in: brainly.com/question/12198015

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Answer: Audience Analysis

Explanation: Audience analysis is when a speaker identifies the audience it will be addressing, by researching their attitudes, beliefs and interests. The speaker then compiles a speech that is in line with these factors. This often involves extensive research of the speaker's audience. The aim of using this guideline is to make the speaker's speech more relateable and effective to its audience.

In this case Jim who is the speaker, uses his thorough knowledge of his employees' educational background (conducted through a form of research), to create a presentation that is effective to his employees, making it relateable because it is based on their educational background.

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4 years ago
Fabiola is an accountant with Rovers and Associates, a law firm in downtown Memphis. The firm maintains a checking account with
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Answer:

C) Drawer

Explanation:

A drawer is an individual or institution that issues and signs a bill of exchange instructing a bank or drawee to pay the specified amount to the payee. The drawer is the person who writes and signs a cheque to a third party or payee. In a situation where the cheque is to pay oneself, the drawer is the same as the payee.

Rover and Associates is the drawer. The law firm issues the cheques instructing Portris Bank to pay the office manager the amount stated in the cheque.  The office manager is an employee of Rover and Associates. The cheque may be written to Rover and Associates. If that is the case, Rover and Associates is first the drawer and the then the payee. Portis bank is the drawee.

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4 years ago
John is creating a presentation on the consumer price index, for his business class. He wants students to understand that food a
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Answer:

A. higher; C-CP

Explanation:

As the exercise says, John wants students to see that food and energy prices have risen more rapidly than other market items used in the Consumer Price Index (CPI) calculation. He wants students to see the increase in the core inflation, because food and energy are the main expenses of people. But for CPI calculation there are other items to consider. So the core inflation will be higher than the CPI (inflation, considering all items), as food and energy prices increased more than the other products considered in the CPI.

The second part of the excersise says that there might be substitution, that is people consuming less expensive goods or services, which will lead to a change in the measuring of the C-CPI as the prices to consider will be lower, so C-CPI will be less

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4 years ago
Orion would like to go on a trip to Ireland in two years. He wants to have $3,000 for the trip, so he is planning to invest mone
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Answer:

The answer is: If Orion wants to have $3,000 in two years, he must invest $2,572.02 today

Explanation:

To determine how much money Orion has to invest today in order to have $3,000 in two years, considering he will get an 8% compound interest rate, we can use this formula:

P = FV / (1 + r)²    

Where:

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P = $3,000 / (1 + 8%)²

P = $3,000 / 1.1664

P = $2,572.02

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The required reserve ratio is 0.2 and the Federal Reserve sells $1 million in securities. If there are no leakages and banks do
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