In general, an expansionary combination of fiscal and monetary policies is used to stimulate an economy that is operating below its full-employment equilibrium level.
In this case, the combination of policies would aim to increase aggregate demand in the economy, which would lead to an increase in output and employment. To determine the appropriate policy mix, policymakers would need to assess the state of the economy and the causes of the output gap (the difference between the actual level of output and the potential or full-employment level). This would involve analyzing factors such as consumer and business spending, interest rates, inflation, and government spending.
Based on this analysis, policymakers could decide on a combination of expansionary fiscal and monetary policies to increase aggregate demand and close the output gap. Expansionary fiscal policies could involve increasing government spending, cutting taxes, or both, while expansionary monetary policies could involve lowering interest rates or increasing the money supply. Ultimately, the specific policy mix and the point of equilibrium where it is needed would depend on the particular circumstances of the economy and the policy goals of the government.
Learn more about economy here:
https://brainly.com/question/2421251
#SPJ11
which of the following are advantages of budgeting? multiple select question. allows for better planning ensures profitability enables better coordination across departments assists in performance evaluation provides advance notice of potential problems lowers accountability increases an employee's individual freedom
The following are advantages of budgeting:
Allows for better planning
Ensures profitability
Enables better coordination across departments
Assists in performance evaluation
Provides advance notice of potential problems
Therefore, the correct options are:
Allows for better planning
Ensures profitability
Enables better coordination across departments
Assists in performance evaluation
Provides advance notice of potential problems
The remaining options, "lowers accountability" and "increases an employee's individual freedom," are not advantages of budgeting.
You can read more about budgeting at https://brainly.com/question/6663636
#SPJ11
Requirements 1. What is the original ROI for Hepburne Ceramics (before making any additional investment)? 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 4. What would the Rl be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Print Done Save Hepbure Ceramics, a division of Placid Corporation, has an operating income of $71,000 and total assets of $400,000. The raqured rate of return for the company is 14%. The company is evaluating whether it should use ROI or Rl as a measurement of performance for its division managers The manager of Haplume Ceramics has the opportunity to undertake a ww project that will require an investment of $108,000. This investment would earn $18,000 tot Hepburne Ceramics
Hepburne Ceramics' original ROI was 17.75%, and an investment opportunity would slightly decrease it but still be above the required rate of return. RI promotes goal congruence by aligning division manager goals with the company's goals.
1. The original ROI for Hepburne Ceramics is 17.75%.
To calculate the original ROI for Hepburne Ceramics, we use the following formula:
ROI = Operating Income / Total Assets
Using the information given:
Operating Income = $71,000
Total Assets = $400,000
ROI = $71,000 / $400,000 = 0.1775 or 17.75%
Therefore, the original ROI for Hepburne Ceramics is 17.75%.
2. The ROI has decreased slightly, so the manager would need to consider other factors as well.
If the investment opportunity were undertaken, we need to recalculate the ROI for Hepburne Ceramics:
Operating Income = $71,000 + $18,000 = $89,000
Total Assets = $400,000 + $108,000 = $508,000
ROI = $89,000 / $508,000 = 0.1754 or 17.54%
The manager of the Hepburne Ceramics division would likely want to make this investment, as the ROI would still be above the required rate of return of 14%. However, the ROI has decreased slightly, so the manager would need to consider other factors as well.
3. The ROI of the investment is lower than the original ROI of Hepburne Ceramics, so the investment would not increase the overall ROI of the company.
To calculate the ROI of the investment opportunity, we use the same formula as before:
ROI = Operating Income / Total Assets
Using the information given:
Operating Income = $18,000
Total Assets = $108,000
ROI = $18,000 / $108,000 = 0.1667 or 16.67%
The investment may or may not be desirable from the standpoint of Placid Corporation, as it depends on the required rate of return and other factors.
However, the ROI of the investment is lower than the original ROI of Hepburne Ceramics, so the investment would not increase the overall ROI of the company.
4. The RI is relatively small compared to the investment, so the manager would need to consider other factors as well.
To calculate the RI for Hepburne Ceramics, we use the following formula:
Operating Income - (Total Assets x Required Rate of Return) = RI
Using the information given:
Operating Income = $71,000 + $18,000 = $89,000
Total Assets = $400,000 + $108,000 = $508,000
Required Rate of Return = 14%
RI = $89,000 - ($508,000 x 0.14) = $12,920
The manager of the Hepburne Ceramics division would likely want to make this investment, as the RI would be positive. However, the RI is relatively small compared to the investment, so the manager would need to consider other factors as well.
5. The RI of the investment opportunity can be calculated as follows:
RI = Net Income - (Required Rate of Return x Total Assets)
= $18,000 - (0.14 x $108,000)
= $3,480
The investment would be desirable from the standpoint of Placid Corporation because the RI is positive, indicating that the investment would earn more than the required rate of return on the assets invested.
6. RI promotes goal congruence more than ROI because it focuses on the residual income generated by a division after taking into account the cost of capital invested in the division.
This means that managers are incentivized to make investments that generate a positive residual income, rather than simply maximizing the ROI by increasing sales or reducing costs without regard for the cost of capital.
This aligns the goals of the division manager with those of the company as a whole, as the company's overall goal is to generate a positive return on its investments.
Learn more about ROI here:
https://brainly.com/question/11913993
#SPJ4
47. If projected net cash flow for November is ($10,000); beginning cash balance is $4,000; minimum cash balance is $3,000; beginning loan balance is $8,000, what will be the cumulative loan balance at the end of November?
A. $14,000
B. $5,000
C. $17,000
D. $22,000
The cumulative loan balance at the end of November is $17,000. Option (c) is correct.
Cumulative loan balance = Net cash flow + Beginning cash balance + Cumulative cash balance - Loan repayment
Cumulative loan balance = (10,000) + 4,000+ (6,000) +9,000.
The amount of cash on hand on the last day of the month is known as the closing balance. The following equation is used to determine the Closing Balance: Opening Balance plus Total Income minus Total Expenditure equals Closing Balance.
Learn more about cumulative loan, here;
https://brainly.com/question/32087967
#SPJ12
In July and December, the BOR may meet to _
In July and December, the BOR may meet to review and discuss important matters related to their organization. During these meetings, they may address topics such as financial reports, strategic planning, and any other issues that may impact the overall success of the organization.
The purpose of these meetings is to ensure that all members of the BOR are informed and updated on the progress and direction of the organization. Additionally, these meetings may also provide an opportunity for members to collaborate and brainstorm ideas for future initiatives.
It is important for the BOR to meet regularly to ensure that they are fulfilling their responsibilities and making informed decisions that align with the goals and values of the organization. By doing so, they can ensure the continued growth and success of the organization.
To know more about financial reports visit:
https://brainly.com/question/1224013
#SPJ11
Allen is conducting qualitative research. Which of the following is most likely to be the objective of his research?
A.
To probe into subconscious consumer motivations
B.
To make accurate predictions about relationships between market forces and purchase behavior
C.
To validate the relationship between advertising expenses and sales volume
D.
To make generalizable observations about a target population's buying behavior
E.
To test a hypothesis linking coupon value to brand preference
Allen conducting qualitative research and which of the following is most likely to be the objective of his research:
The correct answer is A. To probe into subconscious consumer motivations.
Qualitative research aims to explore and understand the deeper, underlying reasons behind human behavior, attitudes, and motivations. It focuses on the "why" and "how" of decision-making, rather than just the "what" or "when".
Therefore, the most likely objective of Allen's qualitative research would be to probe into subconscious consumer motivations.
In contrast, options B, C, D, and E are more aligned with quantitative research objectives, which typically involve hypothesis testing, statistical analysis, and generalizable observations.
Quantitative research is more focused on quantifiable data, while qualitative research delves into the subjective experiences and perspectives of individuals.
In summary, Allen's qualitative research is most likely aimed at uncovering subconscious consumer motivations by gathering rich, detailed insights into their thoughts, feelings, and behaviors.
This type of research is valuable for understanding the complexities of human behavior and informing marketing strategies, product development, and other business decisions.
To know more about refer Qualitative research here
brainly.com/question/13498255#
#SPJ11
How many employees are required to operate the business of wirelesszonefranchise.com
Benjamin has a degree in ecology and is passionate about conservation. What company might be interested in hiring Benjamin?
Question 2 options:
an eco-tour company looking for a guide
a bakery that specializes in donuts
a hotel chain in need of an advertisement executive
an amusement park looking for a security officer
Answer:
eco tour company looking for a guide
Explanation:
a manager skilled at evaluating where the company will be in the future and thinking creatively to solve problem has good ______ skills.
conceptual
planning
analytical
technical
A manager skilled at evaluating where the company will be in the future and thinking creatively to solve problems has good conceptual skills.
Conceptual skills refer to the ability to understand complex and abstract ideas and think critically to analyze situations and develop innovative solutions.
Managers with strong conceptual skills can see the big picture and envision the future of the company. They can identify trends, evaluate opportunities and threats, and develop strategies to achieve the organization's goals.
To know more about conceptual skills refer here
https://brainly.com/question/4382381#
#SPJ11
At which point is supervision most critical in the cash receipts system?
a. accounts receivable
b. general ledger
c. mail room
d. cash receipts
Supervision is most critical in the cash receipts system at point (c) mail room. This is because it is the initial stage where payments are received and handled, and having proper supervision ensures that payments are recorded accurately and promptly, reducing the risk of errors, misplacement, or fraud.
The supervision is most critical in the cash receipts system at the point of cash receipts. This is because at this point, there is a risk of misappropriation or mishandling of cash. The supervisor should ensure that all cash receipts are properly recorded in the ledger and that receipts are accounted for. Failure to properly supervise the cash receipts process could lead to errors in the ledger, loss of receipts, or even theft.
learn more about ledger here: brainly.com/question/14853484
#SPJ11
some of the inputs to this problem will change with each submission, so you will need to recompute your answer each time you submit. your portfolio is invested 35 percent in stock x, 20 percent in stock y, and 45 percent in stock z. the expected returns on these three stocks are 8 percent, 15 percent, and 13 percent, respectively. what is the expected return of your portfolio?
The expected return of your portfolio is 11.65%.
How to determine the expected returnTo calculate the expected return of your portfolio, you need to consider the percentage allocated to each stock and their respective expected returns.
In your case, your portfolio consists of 35% stock X, 20% stock Y, and 45% stock Z.
The expected returns for these stocks are 8%, 15%, and 13%, respectively.
To find the expected return of the portfolio, you can use the following formula:
Expected return of portfolio = (Weight of stock X * Expected return of stock X) + (Weight of stock Y * Expected return of stock Y) + (Weight of stock Z * Expected return of stock Z)
Using the given data, the expected return of your portfolio can be calculated as:
Expected return of portfolio = (0.35 * 0.08) + (0.20 * 0.15) + (0.45 * 0.13)
Expected return of portfolio = 0.028 + 0.03 + 0.0585
Expected return of portfolio = 0.1165 or 11.65%
Learn more about expected returns at
https://brainly.com/question/30825003
#SPJ11
The role of in the production process is central to why the United States is rich and most of the rest of the world is poor. A) labor B) land C) capital D) government
The role of "capital" in the production process is central to why the United States is rich and most of the rest of the world is poor. So, the answer to your question is C) capital.
Capital plays a central role in the production process and is a key factor in the economic success of the United States. Capital refers to the tools, machines, and other resources that are used in the production process.
The United States has been able to accumulate a large amount of capital over time, which has allowed for more efficient and productive production methods. This has resulted in higher levels of economic growth and higher standards of living. In contrast, many other countries lack the capital necessary to modernize their production methods and are thus unable to compete on a global scale.
Additionally, many countries lack the institutional framework necessary to encourage investment and the accumulation of capital. In conclusion, the role of capital in the production process is critical to economic success, and the United States has been able to leverage this advantage to become one of the richest nations in the world.
To know more about capital refer here:
https://brainly.com/question/28550012#
#SPJ11
9. The opposite of free trade is protectionism.
Protectionism is the opposite of free trade. While free trade encourages open markets, unrestricted flow of goods, and removal of trade barriers between countries, protectionism aims to shield domestic industries from foreign competition. This is achieved through implementing measures such as tariffs, import quotas, and subsidies.
Tariffs are taxes imposed on imported goods, making them more expensive and less competitive compared to domestically produced items. Import quotas, on the other hand, limit the quantity of specific goods that can be imported within a given time frame. Subsidies are financial support provided by the government to domestic industries, enabling them to reduce production costs and maintain competitive pricing. Protectionism can be beneficial for developing economies, as it helps nurture infant industries until they can compete on the global stage.
However, critics argue that protectionism stifles international trade, reduces global economic growth, and leads to trade wars. It also discourages innovation and efficiency in domestic industries, as they face less competitive pressure. In summary, while free trade promotes global exchange and cooperation, protectionism focuses on safeguarding domestic industries from international competition through measures like tariffs, quotas, and subsidies. The choice between free trade and protectionism depends on a nation's economic goals, level of development, and overall strategy for growth.
Learn more about Tariffs here-
https://brainly.com/question/8978824
#SPJ11
Innovative team firms should have managers who provide and perspective to the team. Multiple Choice finances, awareness authority, structure support guidance
Innovative team firms should have managers who provide guidance and perspective to the team. Innovation teams require a certain degree of autonomy and creativity,
but they still need some level of guidance to ensure that their efforts are aligned with the overall objectives of the company.
Managers can provide this guidance by offering their perspective and expertise, helping to set priorities, and clarifying goals and expectations.
Additionally, managers can provide support in terms of resources and funding, and can establish the appropriate authority and structure to empower the team to succeed.
While financial awareness is certainly important, it is not the primary focus of managers leading innovative teams.
Instead, their focus is on fostering a culture of innovation, promoting collaboration and creativity, and providing the necessary support and guidance for the team to succeed.
To know more about Innovative team firms here
https://brainly.com/question/25509391
#SPJ11
a service contract for a video projection system costs $220 a year. you expect to use the system for five years. instead of buying the service contract, what would be the future value of these annual amounts after five years if you earn 3 percent on your savings? use exhibit 1-b. (round fva factor to 3 decimal places and final answer to 2 decimal places.)
If the service contract is not purchased and the annual amounts are saved at a 3% interest rate for five years, the future value of those amounts would be $1,271.34.
To calculate the future value of the annual amounts if the service contract is not purchased, we can use the Future Value of an Annuity (FVA) formula:
FVA = PMT x (FVA factor at i% for n periods)
Where:
PMT = Annual amount of $220
i = 3% (the interest rate earned on savings)
n = 5 (the number of years)
Using Exhibit 1-B, we can find the FVA factor for 3% and 5 periods, which is 5.797.
Plugging in the numbers, we get:
FVA = $220 x 5.797
FVA = $1,271.34
Therefore, if the service contract is not purchased and the annual amounts are saved at a 3% interest rate for five years, the future value of those amounts would be $1,271.34.
It's important to consider that by not purchasing the service contract, there may be additional costs in the future if the video projection system requires maintenance or repairs.
It's also important to consider the time value of money and the opportunity cost of not investing those annual amounts elsewhere.
However, if there are no unexpected costs and the annual amounts are saved at a 3% interest rate, the future value can be calculated using the FVA formula.
To know more about service contracts refer here:
https://brainly.com/question/30925221#
#SPJ11
1. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist? a. the effect of taxes on the prices of airline tickets, and the profitability of automobile-manufacturing firms b. the price of beef, and wage differences between genders c. how consumers maximize utility, and how prices are established in markets for agricultural products d. the percentage of the labor force that is out of work, and differences in average income from country to country 2. The basic tools of supply and demand are a. useful only in the analysis of economic behavior in individual markets b. useful in analyzing the overall economy, but not in analyzing individual markets. c. central to microeconomic analysis, but seldom used in macroeconomic analysis. d. central to macroeconomic analysis as well as to microeconomic analysis
Answer: d. the percentage of the labor force that is out of work, and differences in average income from country to country are more likely to be studied by a macroeconomist than by a microeconomist.
d. The basic tools of supply and demand are central to macroeconomic analysis as well as to microeconomic analysis.
Explanation: Brainlist?
c. Discuss in detail the prevalent models of Loan Loss Provisioning and calculation of expected loss for an individual using appropriate example calculation
Loan loss provisioning models include incurred loss, expected loss, and discounted cash flow. Expected loss calculates credit loss over a loan's life.
Loan Loss Provisioning (LLP) is a process used by financial institutions to account for potential future loan losses. There are two prevalent models of LLP, namely the Incurred Loss Model and the Expected Loss Model. The Incurred Loss Model is a traditional method where banks and financial institutions recognize losses after they have been incurred. In this model, banks wait for a loan to become delinquent or default, and then they recognize the loss in their financial statements. This model is criticized for being reactive and not being able to predict future losses, as it does not account for potential future loan losses.
The Expected Loss Model, on the other hand, is a forward-looking model that accounts for potential future losses. This model is required by accounting standards such as IFRS 9 and CECL (Current Expected Credit Loss). The expected loss is calculated as the probability of default (PD) of the borrower, multiplied by the loss given default (LGD), and the exposure at default (EAD).
For example, suppose a bank has issued a loan of $100,000 to a borrower with a PD of 2%, an LGD of 50%, and an EAD of $80,000. The expected loss for this loan would be calculated as follows:
Expected Loss = PD x LGD x EAD
Expected Loss = 0.02 x 0.5 x $80,000
Expected Loss = $800
This means that the bank would provision $800 as a loan loss provision for this loan.
In conclusion, the Expected Loss Model is a forward-looking approach that is gaining popularity due to its ability to predict future loan losses. It allows banks to set aside reserves to cover potential losses, which helps them to better manage their risks and comply with accounting standards.
To know more about loan, here
brainly.com/question/11794123
#SPJ4
identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.statementconsumer surplusproducer surplusneithereven though i was willing to pay as much as $44 for a used record, i bought a used record for just $34.yesterday i paid $37 for a polaroid camera. today, the same store is selling cameras for $29.i sold a crew neck for $31, even though i was willing to accept as little as $22 in exchange for it.
Statement: Consumer Surplus, Producer Surplus, or Neither
Even though I was willing to pay as much as $44 for a used record, I bought a used record for just $34. Consumer Surplus
Yesterday I paid $37 for a Polaroid camera. Today, the same store is selling cameras for $29. Neither
I sold a crew neck for $31, even though I was willing to accept as little as $22 in exchange for it. Producer Surplus
To know more about Consumer Surplus refer here
https://brainly.com/question/31667628#
#SPJ11
true or false? :All the manufactures make sure they are not misusing the "green label"
False. Unfortunately, not all manufacturing ensure that they are not misusing the "green label".
There have been instances of companies making false or exaggerated environmental claims about their products, often referred to as "greenwashing". Greenwashing is a marketing tactic that seeks to make products appear more environmentally friendly than they actually are, often through misleading or incomplete information. It is important for consumers to be aware of greenwashing and to do their own research to verify environmental claims made by companies. Additionally, there are organizations and certifications, such as Energy Star and the Forest Stewardship Council, that can help consumers identify products that meet certain environmental standards.
Learn more about manufacturing here;
https://brainly.com/question/17052484
#SPJ11
the goal of employee awareness and training is to ensure that individuals are equipped with the tools necessary for the implementation of security policies. which of the following is one of the other benefits of a successfully enacted training and awareness program?
The goal of employee awareness and training is to ensure that individuals are equipped with the tools necessary for the implementation of security policies.
One of the other benefits of a successfully enacted training and awareness program is that it helps to reduce the occurrence of security incidents and their potential impact on the organization.
By educating employees about potential risks, common threats, and best practices for maintaining security, they become more aware of their responsibilities and the importance of adhering to security policies.
This heightened awareness can lead to more proactive identification and reporting of suspicious activities, ultimately resulting in a more secure working environment.
In summary, a well-implemented training and awareness program contributes to the overall security posture of an organization by fostering a culture of vigilance and responsibility among employees.
To know more about security policies refer here:
https://brainly.com/question/29553302#
#SPJ11
Businesses have responded to the increase in single-parent households by:
Businesses have responded to the increase in single-parent households by implementation of programs like flextime and family leaves.
Flexible hours benefits single parents. For parents with young children, their work timing can be made in tune with the baby's sleep time. Single parents can take leaves for specific family and medical reasons.
Single moms in workplaces need time off their work to pick up their kids or drop them to school. Or to take them to an appointment with a doctor, attend parent-teacher meet, etc. Employers are embracing the idea of giving more leaves and flexible working time to single parents.
For more on how businesses have responded to the increase in single-parent households,
https://brainly.com/question/30359410
Over the years, Ahmed and Aamina El-zayaty, of Berkeley, California, have accumulated $200,000 and $220,000, respectively, in their employer-sponsored retirement plans. If the amounts in their two accounts earn a 6 percent rate of return over Ahmed and Aamina's anticipated 20 years of retirement, how large of an amount could be withdrawn from Ahmed's account each month? Use the Garman/Forgue companion website or Appendix A-4 to make your calculations. A. $1,787 B. $1,453 C. $2,287 D. $1,919
None of the answer options match this amount exactly but the closest one is option C.
To calculate the amount that could be withdrawn from Ahmed's account each month, we can use the present value annuity formula:
PMT = PV x (r / (1 - (1 + r)^-n))
Where PMT is the monthly payment, PV is the present value of Ahmed's retirement account, r is the monthly interest rate (which is 6% / 12 = 0.5%), and n is the number of months in retirement (which is 20 years x 12 months/year = 240 months).
Plugging in the numbers for Ahmed's retirement account, we get:
PMT = 200,000 x (0.005 / (1 - (1 + 0.005)^-240))
PMT = 200,000 x (0.005 / 0.3567)
PMT = 200,000 x 0.014
PMT = $2,800
Therefore, Ahmed could withdraw $2,800 per month from his retirement account.
To know more about retirement plan https://brainly.com/question/31284848
#SPJ11
What is MicroDrives's cost of common equity using the CAPMmethod?A. 4.88%B. 5.11%C. 6.52%D. 7.88%
The answer is not one of the options provided. The correct answer is 8%. Therefore, option D. Is the closest answer to 8%. So, 7.88% is Microdrive's cost of common equity.
To calculate the cost of common equity:To calculate the cost of common equity using the CAPM method, we need three inputs: the risk-free rate, the market risk premium, and the company's beta.
Assuming that the risk-free rate is 2.5% and the market risk premium is 5%, we need to find MicroDrives' beta.
Let's say that MicroDrives has a beta of 1.2.
Using the CAPM formula: Cost of Equity = Risk-Free Rate + Beta x (Market Risk Premium)
Cost of Equity = 2.5% + 1.2 x 5% = 8%
Therefore, the answer is not one of the options provided. The correct answer is 8%.
To know more about cost of equity
visit:
https://brainly.com/question/23968382
#SPJ11
marguerite is reviewing a project with projected sales of 1,400 units a year, a cash flow of $39 a unit and a 3-year project life. the initial cost of the project is $94,000. the relevant discount rate is 14 percent. marguerite has the option to abandon the project after one year at which time she feels she could sell the project for $63,000. at what quantity of sales per year should she be willing to abandon the project after the first year? group of answer choices 899 981 967 1199
The quantity of sales per year she should be willing to abandon the project after the first year is 981.
How to calculate the quantity of sales per yearTo determine the quantity of sales per year at which Marguerite should be willing to abandon the project after one year, we need to calculate the net present value (NPV) of the project.
Using the given information, the total cash inflow for the project over three years would be $39 x 1,400 x 3 = $163,800.
Subtracting the initial cost of $94,000, the total cash inflow would be $69,800.
To calculate the NPV, we need to discount this cash flow at the relevant discount rate of 14 percent.
Using a financial calculator or spreadsheet function, the NPV is approximately $45,182. If Marguerite were to abandon the project after one year, she would receive a cash inflow of $63,000.
Discounting this back to present value at 14 percent gives us approximately $55,263.
Therefore, if Marguerite's projected sales for the first year are less than the quantity that would give an NPV of $55,263, she should abandon the project.
Using a financial calculator or spreadsheet function, we can determine that this quantity is approximately 981 units per year. Therefore, the answer is 981.
Learn more about NPV at
https://brainly.com/question/30974448
#SPJ11
1) Considering the spot exchange rate S(USD/CAD) to be 0.9830and the forward exchange rate F90days(USD/CAD) to be 0.9750,quantify the annualised premium/discount of the USD.
The annualised premium/discount of the USD is -3.24%. This means that the forward exchange rate is trading at a discount to the spot exchange rate, and that over the course of a year, investors could expect to lose 3.24% by entering into a forward contract to exchange USD for CAD.
To calculate the annualised premium/discount of the USD, we need to use the formula:
Annualised premium/discount = [(Forward rate - Spot rate) / Spot rate] x (360 / days to maturity)
Using the given values, we have:
Forward rate = 0.9750
Spot rate = 0.9830
Days to maturity = 90
Substituting these values into the formula, we get:
Annualised premium/discount = [(0.9750 - 0.9830) / 0.9830] x (360 / 90)
= (-0.008 / 0.9830) x 4
= -0.0324 or -3.24%
This can be seen as a reflection of the relative strength of the Canadian economy compared to the US economy, which may be driving demand for CAD and pushing down the price of USD in the forward market.
To know more about exchange rate visit:
https://brainly.com/question/29562028
#SPJ11
A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?â
Select one:
a. An increase in the demand for milk
b. An increase in the price of milk
c âA leftward shift of the supply curve for milk
d. A decrease in the quantity demanded of milk
e. A rightward shift of the supply curve for milk
The correct answer is: e. A rightward shift of the supply curve for milk. This is because the new cattle feed improves each cow's milk production, leading to a higher quantity of milk being supplied at each price level.
Your question is about the likely impact on the milk market if a new cattle feed, used by most dairies, increases the milk production per cow. If the new cattle feed is found to be effective and is used by most dairies, the likely impact in the market for milk would be an increase in the supply of milk. With more milk being produced by each cow, the overall supply of milk would increase. This would result in a rightward shift of the supply curve for milk. However, the demand for milk may not increase proportionally with the increase in supply. Therefore, the price of milk may decrease due to the surplus of milk in the market. This would lead to a decrease in the price of milk, as the market would be flooded with an excess of milk. Overall, the use of the new cattle feed may lead to a more competitive market for milk. The increased supply may lead to lower prices for consumers, but could also result in lower profits for dairy farmers. Therefore, the impact of the new cattle feed on the market for milk would depend on a range of factors, including the responsiveness of consumers to price changes and the cost of producing the new cattle feed. As a result, the supply curve for milk shifts to the right, indicating an increase in the overall supply of milk in the market.
Learn more about cattle feed here
https://brainly.com/question/13117571
#SPJ11
Roy is power oriented. He does not tolerate people on his negotiating team who do not go along with his ideas. Roy's resolves conflict in the _____ mode.
A. competing
B. accommodating
C. avoiding
D. collaborating
E. compromising
Roy is power oriented. He does not tolerate people on his negotiating team who do not go along with his ideas. Roy's resolves conflict in the competing mode, Based on information, it can be inferred that Roy is a person who values power, control in negotiations. The correct answer is option A
The competing mode is a conflict resolution strategy where one party tries to win at the expense of the other party. In this mode, the parties involved are more interested in achieving their own goals rather than finding a mutually beneficial solution. This mode is often used by individuals who are power-oriented and assertive, just like Roy.
Roy's unwillingness to tolerate dissenting opinions and his focus on his own ideas suggest that he is more interested in dominating the negotiation rather than working collaboratively with his team member to find a mutually beneficial solution. Thus, his conflict resolution mode is more aligned with the competing mode.
However, it's important to note that this mode is not always the most effective approach to conflict resolution. In situations where building relationships and maintaining long-term partnerships are crucial, the collaborative mode may be more effective. The collaborative mode involves finding a solution that benefits both parties, rather than focusing solely on individual interests. The correct answer is option A
Know more about conflict resolution here:
https://brainly.com/question/17744728
#SPJ11
what is the yeild to maturity of bond with 10 years to maturity anda coupon of 14% the current price of the bond is $1100. assumeinterest is paid annuallya13.5%b 12%c 13%d 12.21%
The yield to maturity (YTM) of a bond with 10 years to maturity, a coupon rate of 14%, and a current price of $1100 and hold it until maturity, you can expect an annual return of about 12.21%.The correct option is d.
Thisvcan be calculated using the following steps:
1. Identify the bond's face value, coupon payment, and current price: The face value is typically $1000, the coupon payment is 14% * $1000 = $140, and the current price is $1100.
2. Use a financial calculator or spreadsheet software to find the YTM by inputting the values: N = 10 (years to maturity), PMT = $140 (coupon payment), PV = -$1100 (current price, entered as a negative value), and FV = $1000 (face value).
3. Solve for the YTM, which is the interest rate that equates the present value of the bond's future cash flows to its current price. The calculator or spreadsheet software will provide the YTM as a percentage.
In this case, the YTM is approximately 12.21% . This means that if you purchase the bond at its current price of $1100 and hold it until maturity, you can expect an annual return of about 12.21%.The correct option is d.
To know more about yield to maturity refer here:
https://brainly.com/question/26376004#
#SPJ11
Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?
A) GLOCAL
B) global elite
C) counter trade
D) global commons
The term "GLOCAL" best describes a company that has operations in various countries, follows policies to develop local research and development (R&D) to tailor products to specific markets, allows individual plants to set their own rules, and aims to be a good corporate citizen in every country. Option (A).
GLOCAL represents a combination of "global" and "local" strategies, where companies seek to balance the benefits of a global presence with the need to adapt to local markets and cultures.
By embracing the GLOCAL approach, companies can leverage global scale while also catering to local preferences and needs, fostering innovation, and maintaining a positive relationship with local communities and stakeholders.
To learn more about GLOCAL refer here:
https://brainly.com/question/28285717#
#SPJ11
when using the aida strategy to present a persuasive message, you should motivate action in the body of your message. true or false
The answer for the statement ''when using the aida strategy to present a persuasive message, you should motivate action in the body of your message'' is True.
When using the AIDA (Attention, Interest, Desire, Action) strategy to present a persuasive message, it is important to motivate action in the body of your message. This means that after capturing the audience's attention and generating interest, you need to create a desire for your product or service and then provide a clear and compelling call to action.
This could be an invitation to visit a website, make a purchase, or sign up for a service. By motivating action, you are encouraging the audience to take the next step towards making a decision and achieving the desired outcome. Without this call to action, your message may not be effective in achieving the desired results.
To know more about aida strategy ,refer to the link:
https://brainly.com/question/30017929#
#SPJ11
suppose you trade dollars and euros for a bank that has branches in los angeles and paris. you can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. the current dollar-per-euro exchange rate in los angeles is e$/eurla
Assuming other foreign exchange traders face the same situation, they will also buy dollars in Rome and sell them in Los Angeles, As a result: the dollar-per-euro exchange rate will eventually reach equilibrium between the two locations.
The current dollar-per-euro exchange rate in Los Angeles is E = 1.5952, and in Rome, it is E/EUR 80 = 1.6244. Since the exchange rate is higher in Rome, you can make a profit for the bank by buying euros in Los Angeles and selling them in Rome.
1. Buy euros in Los Angeles at the exchange rate of E = 1.5952 dollars per euro.
2. Transfer the euros electronically to the Rome branch at no cost.
3. Sell the euros in Rome at the exchange rate of E/EUR 80 = 1.6244 dollars per euro.
The difference between the two exchange rates represents the profit you can make for the bank. Assuming other foreign exchange traders face the same situation as you, they will also buy dollars in Rome and sell them in Los Angeles. As a result, the dollar-per-euro exchange rate will eventually reach equilibrium between the two locations.
To know more about foreign exchange, refer here:
https://brainly.com/question/30992241#
#SPJ11
Complete question:
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Rome, You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles s E=1.5952 while in Rome it is E/EUR 80=1.6244. You can make a profit for the bank if you buy euros in and sell them in Los Angeles Assuming other foreign exchange traders face the same as you do, they will buy dollars in As a result, the dollar-per-euro e Rome Angeles(ESEUR and seil them in: