Classify each type of income as earned or unearned: gifts

In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the

julia-pushkina [17]

Answer:

The correct answer is option (C).

Explanation:

According to the scenario, the given data are as follows:

Base year basket price = $5,000 billion

Year 2 basket price = $5,500 billion

So, we can calculate the consumer price index by using following formula:

Consumer price index = (Year 2 basket price ÷ Base year basket price ) × 100

By putting the value, we get

Consumer price index = ( $5,500 ÷ $5,000 ) × 100

= 1.1 × 100

= $110 billion

5 0

4 years ago

Traditionally, the federal reserve can give emergency loans only to select one:

jeyben [28]

The federal reserve is the central bank of the United States of America. It is considered as an independent bank because it does not need permission from the President to make transactions. Moreover, it does not benefit from the Congress' budget. The federal reserve only gives emergency loans to commercial banks during times of crisis to prevent bankruptcy.

6 0

3 years ago

the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac

Sergeu [11.5K]

Answer:

Note: The full question is attached as picture below

(a) (b) (c)

In Larger

Balance Difference column

1. No $725 Debit

2. Yes NA NA

3. Yes NA NA

4. No $225 Credit

5. Yes $684 NA

6. No $45 Credit

7 0

3 years ago

For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati

AlladinOne [14]

Answer:

Impact of Transactions on the Accounting Equation:

Transaction Assets = Liabilities + Stockholders' Equity

1. 15,000 = 0 15,000

2. 9,000 = 9,000 0

3. 1,200 = 1,200 0

4. 2,400 = 2,400 0

5. -12,000+12,000 = 0 0

6. 3,000 = 0 3,000

7. -4,000 = -4,000 0

8. -2,400 = -2,400 0

9. 0 = -1,200 1,200

10. -1,000 = 0 -1,000

Totals $23,200 = $5,000 $18,200

Explanation:

a) Data and Analysis:

1. Cash, $15,000 Common Stock

2. Cash $9,000 Bank Loan $9,000

3. Cash $1,200 Deferred Revenue $1,200

4. Supplies $2,400 Accounts Payable $2,400

5. Prepaid Rent $12,000 Cash $12,000

6. Accounts Receivable $3,000 Service Revenue $3,000

7. Bank Loan $4,000 Cash $4,000

8. Accounts Payable $2,400 Cash $2,400

9. Deferred Revenue $1,200 Service Revenue $1,200

10. Dividends $1,000 Cash $1,000

7 0

3 years ago

National Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of

Snowcat [4.5K]

Answer:

$15.43

Explanation:

Following actions are required for triangular arbitrage:

Available: $ 10,000

Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.

Now, sell these pounds and purchase NZ $ at the rate :

1 pound = NZ $ 2.95 and receive NZ$ 18209.87

Now, reconvert the above proceeds into US $ at the rate

1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285

Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000

= $15.43

Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.

Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.

The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".

7 0

3 years ago