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kupik [55]
2 years ago
10

A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its bo

rrowers. In this example, the bank is:.
Business
1 answer:
Vedmedyk [2.9K]2 years ago
6 0

Answer: Hedging

Explanation: because the bank is hedging when it purchases a credit default swap that is offering protection against the default of one of its borrowers.

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Blake Company purchased two identical inventory items. The item purchased first cost $17.00, and the item purchased second cost
BaLLatris [955]

Answer:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

Explanation:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

True as under weighted average:

(17 + 18) / 2 = 17.50

the ending inventory will be one unit valued at $17.50

while under FIFO the 17 dollar unit was sold and declare cost

while the second is keep under ending invenotry at $18.00

7 0
3 years ago
Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
Jet001 [13]

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

  • Straight-line.
  • Double declining balance.
  • Units of production.
  • Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

6 0
3 years ago
Q3. List three factors that are an impediment to traditional Barter System in papua New Guinea<br>​
Butoxors [25]

Answer:

The biggest challenge is PNG

4 0
2 years ago
Some economists believe that permanently lower marginal income tax rates __________ the incentive to work and thus shift the ___
gtnhenbr [62]

Answer:

The answer is "increase; LRAS curve to the right".

Explanation:

The curve LRAS represents the flow between all the level of wages and economic GDP supplied because all prices are fully flexible, also with nominal salaries; its cost may change all along LRAS, however, the output cannot, as it represents the complete output of workers, that's why the several economists say that lower marginal rate consistently increases the motivation to work, shifting the LRAS curve to the left.

6 0
2 years ago
At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate
Ede4ka [16]

Answer:

a decreasing rate.

Explanation:

Total utility of an individual is the satisfaction which is achieved by consuming one additional unit of good. When a person achieves more goods his marginal utility declines. When the total utility is increased, the rate of utility is decreasing.

6 0
3 years ago
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