Answer:
Liquidity Effect
Explanation:
The liquidity effect is one of the resulting outcomes of the government policies which increases money in the economy system. However, the liquidity effect is the cause of the reduction in the real interest rates.
Therefore, If the Fed increases its open market purchases of government securities, it exerts downward pressure on real interest rates. This situation is commonly referred to as LIQUIDITY EFFECT.
Answer: $3,564.50
Explanation:
The total amount that the company will pay for the merchandise is the net cost of the merchandise, less a 3% cash discount, plus the transportation costs. The cash discount normally only applies to the merchandise and not the transportation costs.
The cost of the merchandise is $3,600 less the $250 refund, which equals $3,350. With a 3% cash discount they will pay 97% of this amount, which is $3,249.50. After adding the additional transportation charge of $315, the total amount to be paid is $3,564.50.
Answer:
a. a majority of both shareholders and directors must approve.
Explanation:
Whenever a corporation decides to dispose off all of it's assets or substantially all of it's assets to another corporation, following points are noteworthy
- The Board of directors first have to propose a resolution regarding disposition which has to be approved
- Secondly post approval of the said resolution, the act of "disposition" also requires approval by the corporation's shareholders.
- Such approval must be obtained by majority of the votes cast in it's favor.
In short, disposition of all or substantially all the assets requires an approval of a majority of both shareholders and directors.
Answer:instructing the German subsidiary to borrow euros from a bank in Germany
Explanation:A company may organize subsidiaries to keep its brand identities separate. This allows each brand to maintain its established goodwill with customers and vendor relationships. Subsidiaries can also help you position part of your business as an alternative to the parent company at a different price point.
The Chicago Company will instruct the German subsidiary to lend Euro from bank in Germany.
