Answer:
D .the long-term spot rate is an average of the current and expected future short-term interest rates
Explanation:
Unbiased Expectations Theory -
According to this theory , it forecasts the short - term rate of interests of the future according to the current long - term rate of interests .
Which states that the investor gets the same interest amount during two consecutive one - year bond against investing in one two - year bond .
Hence , from the given statements , the correct statement regarding the unbiased expectations theory , is ( D. ) .
Answer:
15 July Debit Bank $10,000; Credit Sales revenue $9,600 and Credit Sales tax payable $400
15 July Debit Cost of goods sold $5,000; Credit Inventory $5,000
1 August Debit Sales tax payable $400; Credit Bank $400
Explanation:
15 July Debit Bank $10,000; Credit Sales revenue $9,600 and Credit Sales tax payable $400
15 July Debit Cost of goods sold $5,000; Credit Inventory $5,000
1 August Debit Sales tax payable $400; Credit Bank $400
The sales tax expense of $400 ($10,000 * 4%) is a liability to the company as it has to pay it over to government thus it cannot be recorded as sales revenue income. At the date of sale we recognize a sales tax payable liability of the amount that we would have to pay over to the government for that particular sale
Explanation:
a) A bank wishes to collect data on the number of customer services and the frequency of customer use of these services.
Answer: Blue ocean strategy
Explanation:
Blue ocean strategy is the concurrent pursuit of low cost and differentiation to establish a new market space and also create new demand. The strategy is about the creation and capturing of an uncontested market thereby making competition irrelevant.
Blue oceans target markets where there are no existing competition. In blue oceans, demand is established rather than competed and this leads to rapid opportunity for growth and profitability. A blue ocean describes the broader, deeper potential that can be found in an unexplored market.
Answer:
Nominal Interest rate
Explanation:
According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money. So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.