The option of saving money that offers the most liquidity is a piggy bank. (option C)
<h3>What is liquidity?</h3>
Liquidity can be described as the ease with which an asset can easily be converted to cash. Paper currency and coins is the most liquid assets. Real estate is illiquid because it takes a long time for a real estate asset (e.g a house) to be sold and proceeds converted to cash.
Liquid assets earn less returns when compared with assets that are less liquid. This is because illiquid assets earn an illiquidity premium. An illiquidity premium compensates holders for holding an illiquid asset.
Money in a piggy bank is already in cash or coins and there is no need to convert it to cash again. Also, money in a piggybank is more accessible than the other options.
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Answer:
c) Hotel rates for AAA members are lower than for nonmembers.
Explanation:
In business, the term price discrimination refers to the strategy by which the seller charges a different price for the SAME product because the seller knows that the client will pay that price. The key word of this definition is that the seller is offering the <u>same</u> service/product but at different costs
If we take a look at our options we can see that a) offers a different service (one is overnight shipping and the other is standard), b) also offers a different product (first-class seats vs. coach), finally, c) offers the same product (the same hotel rooms) but non members pay more for the rooms than AAA members.
Thus, the correct answer is c) Hotel rates for AAA members are lower than for nonmembers.
Answer:
The answer is: The overhead variance was $1,700 and it was overapplied
Explanation:
Victryl's estimated overhead cost per labor hour was:
$700,000 / 35,000 = $20 per labor hour
If during February, Victryl had 5,000 direct labor hours, then its estimated cost should have been: $20 x 5,000 = $100,000 estimated overhead cost
The actual overhead cost was $98,300, which is $1,700 less than the estimated cost.
All of the above given options contributed to the financial crisis of 2008.
Option D
<h3>
<u>Explanation:</u> </h3>
The 2008 financial crisis has been cumulative of many factors which started in early 2000. Over the period of time from 2000-2008, the government sought to reduce federal funds rates increasing liquidity. The interest rates started increasing and the real estate market was at its saturation point, furthermore, there was also a subprime crisis in terms of loans and mortgages which negatively affected the market.
2008 recession was the climax of all the bad financial decisions that prevailed for many years prior. However, the recession was a global problem and many governments sought to reduce rates, purchased distressed assets and also sought to the nationalization of some financial institutions.
Answer:
The bond price is $1024.74.
Explanation:
Given,
time, t= 8 year
Maturity value, F = $1,000
interest rate, r = 6.1%
Coupon, C = $65
Bond's price = ![C [ \dfrac{(1-[1+r]^{-t} )}{r} ] + \dfrac{F}{[1+r]^t}](https://tex.z-dn.net/?f=C%20%5B%20%5Cdfrac%7B%281-%5B1%2Br%5D%5E%7B-t%7D%20%29%7D%7Br%7D%20%5D%20%2B%20%5Cdfrac%7BF%7D%7B%5B1%2Br%5D%5Et%7D)
= ![65 [ \dfrac{(1-[1+0.061]^{-8})}{0.061}] +\dfrac{1000}{[1+0.061]^8}](https://tex.z-dn.net/?f=65%20%5B%20%5Cdfrac%7B%281-%5B1%2B0.061%5D%5E%7B-8%7D%29%7D%7B0.061%7D%5D%20%2B%5Cdfrac%7B1000%7D%7B%5B1%2B0.061%5D%5E8%7D)
= ![65 [\dfrac{ (1- \dfrac{1}{1.6059})}{0.061}] + \dfrac{1000}{1.6059}](https://tex.z-dn.net/?f=65%20%5B%5Cdfrac%7B%20%281-%20%5Cdfrac%7B1%7D%7B1.6059%7D%29%7D%7B0.061%7D%5D%20%2B%20%5Cdfrac%7B1000%7D%7B1.6059%7D)
= ![65 [ \dfrac{(1 - 0.6227)}{0.061}] +\dfrac{1000}{1.6059}](https://tex.z-dn.net/?f=65%20%5B%20%5Cdfrac%7B%281%20-%200.6227%29%7D%7B0.061%7D%5D%20%2B%5Cdfrac%7B1000%7D%7B1.6059%7D)
=![65\times [ 6.1852] + 622.70](https://tex.z-dn.net/?f=%2065%5Ctimes%20%5B%206.1852%5D%20%2B%20622.70)
=$1024.74.
Hence, the bond price is $1024.74.
