Sometimes, due to a nation's unreliable currency, the only way to trade is ___________ which is defined as the exchange of merchandise for merchandise or service for service with no money traded.

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Answer 1

Sometimes, due to a nation's unreliable currency, the only way to trade is through barter, which is defined as the exchange of merchandise for merchandise or service for service with no money traded.

In a barter system, goods and services are exchanged directly between two parties without the use of money as a medium of exchange. Barter can be a practical solution when a nation's currency is unstable or not widely accepted, or when there is a lack of access to traditional banking and financial systems. Sometimes, due to a nation's unreliable currency, the only way to trade is through barter, which is defined as the exchange of merchandise for merchandise or service for service with no money traded. However, barter can be more difficult to manage and can limit the range of goods and services that are available for trade.

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What is the most important factor to consider in a sites decision to participate in competing clinical trials?
A) Clinical trial business is competitive so it is acceptable to participate in as many trials as possible.
B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors.
C) The sponsor will be disappointed with a site's level of engagement if it turns down an opportunity to participate.
D) Competing studies are more financially rewarding to the site.

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B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors. When a site participates in competing clinical trials, it becomes challenging to prioritize study-related activities.

The most important factor to consider in a site's decision to participate in competing clinical trials is B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors. Participating in multiple competing trials can lead to conflicts in scheduling, resources, and overall management. It is essential for sites to prioritize their study-related activities and ensure that they can adequately manage the workload. While sponsors may want a site to participate in their trial, it is ultimately up to the site to decide if they can effectively manage the workload and prioritize their responsibilities. Financial rewards should not be the primary consideration when deciding to participate in competing trials. Balancing the needs and expectations of different sponsors can be difficult, and this may impact the quality of the research. Thus, it is crucial to consider the potential struggle in prioritizing when deciding to participate in competing clinical trials.

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Gutierrez Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The Board Division has offered the Chip Division $21 per unit to supply it with chips for 40,000 boards. It has been purchasing these chips for $22 per unit from outside suppliers. The Chip Division receives $22.50 per unit for sales made to outside customers on this type of chip. The variable cost of chips sold externally by the Chip Division is $14.50. It estimates that it will save $4.50 per chip of selling expenses on units sold internally to the Board Division. The Chip Division has no excess capacity.
(a) Calculate the minimum transfer price that the chip division should accept
Minimum transfer price $18.00
(b) Suppose that the Chip Division decides to reject the offer. What are the financial implications for each division, and for the company as a whole, of this decision?

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Overall, the rejection of the offer may result in lower profits for the company as a whole, as well as a missed opportunity for the Chip Division to generate additional revenue and for the Board Division to save costs.  

If the Chip Division  more rejects the offer from the Board Division, it will continue to sell chips externally for $22.50 per unit. However, it will miss out on the opportunity to sell 40,000 chips internally to the Board Division, which would have generated a revenue of $21 per unit.

The Board Division will have to continue purchasing chips from outside suppliers at a cost of $22 per unit, resulting in an additional cost of $1 per unit compared to the offer made to the Chip Division.

For the company as a whole, the rejection of the offer means that there will be no internal transfer of chips, and the company will continue to purchase chips from outside suppliers for the Board Division. This will result in an additional cost of $1 per unit compared to the offer made to the Chip Division.
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Peer to peer lending is only for people who cannot get a loan from a bank. True O False

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The statement "Peer-to-peer lending is only for people who cannot get a loan from a bank" is False. P2P lending platforms connect borrowers directly with individual investors, providing an alternative method of obtaining loans.

People choose this option because they prefer the ease and convenience of an online platform, or because they believe they can get a better interest rate from individual investors. Peer-to-peer lending is an alternative way of obtaining loans and is not exclusively for those who cannot get loans from banks. It is an online platform that connects borrowers directly with lenders, often resulting in lower interest rates and easier access to credit for a variety of individuals, including those who might have difficulty obtaining loans from traditional banks.

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_____, an approach to advertising execution, offers an imaginative look at how it might be if a customer purchases a product.
a. Musical
b. Humor
c. Endorser
d. Slice of life
e. Fantasy creation

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The approach to advertising execution that offers an imaginative look at how it might be if a customer purchases a product is e. Fantasy creation.

In this approach, the advertising portrays a dream-like scenario where the customer is transported to a magical world where the product is the answer to all their problems. This approach is particularly effective in creating an emotional connection with the customer, as it taps into their deepest desires and aspirations. By using fantasy elements, the advertising is able to evoke a sense of wonder and awe in the customer, making them more likely to engage with the brand and ultimately make a purchase. Overall, the fantasy creation approach is a powerful tool for advertisers looking to create a memorable and impactful campaign that resonates with their target audience.

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Suppose the risk-free retum is 3.1% and the market portfolio has an expected retum of 8.8% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.28. What is its expected return?

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The expected return of Johnson & Johnson Corporation stock is approximately 4.7%.

To calculate the expected return of Johnson & Johnson Corporation stock, you'll need to use the Capital Asset Pricing Model (CAPM) formula, which takes into account the risk-free return, the stock's beta, and the market portfolio's expected return and standard deviation.

The CAPM formula is as follows:
Expected Return = Risk-Free Return + Beta × (Market Portfolio Expected Return - Risk-Free Return)

Given the information provided, you can plug in the values:
Risk-Free Return = 3.1%
Market Portfolio Expected Return = 8.8%
Beta of Johnson & Johnson Corporation stock = 0.28

Now, calculate the expected return using the formula:
Expected Return = 3.1% + 0.28 × (8.8% - 3.1%)

Expected Return = 3.1% + 0.28 × 5.7%

Expected Return = 3.1% + 1.596%

Expected Return ≈ 4.7% (b)

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Sale The company sold equipment for 16,000$. the cost of the equipment is 60,000$, it's accumulated depreciation is 49,000$. Record the sales transaction

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The sales transaction:

Debit: Cash or Accounts Receivable (depending on how the customer paid) for $16,000

Credit: Equipment for $60,000

Credit: Accumulated Depreciation for $49,000

Credit: Gain on Sale of Equipment for $5,000

The credit to Equipment and Accumulated Depreciation is to remove the equipment from the balance sheet, as it has been sold. The credit to Gain on the Sale of Equipment is to record the profit made on the sale of the equipment. The total of the credits should equal the total amount of the debit.

When a company sells equipment, there are a few accounts that need to be adjusted to reflect the transaction. In this case, the company sold equipment for $16,000, and the cost of the equipment was $60,000, with accumulated depreciation of $49,000.

To record the sales transaction, we need to make the following journal entry:

Debit: Cash or Accounts Receivable (depending on how the customer paid) for $16,000

This debit increases the cash or accounts receivable account, depending on how the customer paid for the equipment. Since the company received $16,000 for the equipment, this amount is debited to either the cash or accounts receivable account.

Credit: Equipment for $60,000

This credit decreases the equipment account on the balance sheet. Since the equipment was sold, it is no longer owned by the company and should be removed from the balance sheet.

Credit: Accumulated Depreciation for $49,000

This credit decreases the accumulated depreciation account on the balance sheet. Accumulated depreciation represents the total amount of depreciation that has been charged against the equipment since it was acquired. When the equipment is sold, the accumulated depreciation associated with it needs to be removed from the balance sheet.

Credit: Gain on Sale of Equipment for $5,000

This credit records the gain made on the sale of the equipment. Since the equipment was sold for $16,000, but its cost was only $60,000 - $49,000 = $11,000, a gain of $5,000 was made on the sale. This gain is credited to the Gain on Sale of Equipment account, which is an income statement account that records gains or losses made on the sale of assets.

In summary, the journal entry records the cash received from the sale of the equipment, removes the equipment and its accumulated depreciation from the balance sheet, and records the gain made on the sale of the equipment.

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Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $196,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $647,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,050,000 in total. Seida’s January 1, 2021, book value equaled $1,900,000, although land was undervalued by $131,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $342,000 and declared and paid dividends of $102,000.- Record acquisition of Seida stock.- Record the 40% income earned during period by Seida.- Record 2021 amortization for trademark excess fair value.- Record dividend declaration from Seida.- Record collection of dividend from investee.

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The collection of dividend from investee based on the information provided is 40,800

current investment fair value: 2,050,000 x 40% = 820,000

previous value in books:    2,050,000 x 10% =      (205,000)

adjustment on Sieda investment:                            615,000

Purchase for                                                              647,000

TradeMark                                                                   32,000

Milani participation in the income: 342,000 x 40% = 136,800

Milani participation in the dividends: 102,000 x 40% =   40,800

Dividends are payments made by a company to its shareholders as determined by the board of directors. Dividend payments are often quarterly and can take the form of cash payments or reinvestments in stock.

Dividend yield, or dividend per share, is given as a percentage of a company's stock price (eg 2.5%).If ordinary shareholders of the company paying the dividend own the shares on or before the ex-dividend date, they are entitled to the payment.

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The Glorious Vander Built Denim Slacks Company has taxable income of $100,000. Assuming a 34% tax rate, what is the tax payable?

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The tax payable for The Glorious Vander Built Denim Slacks Company can be calculated by multiplying their taxable income of $100,000 by the tax rate of 34%.

Tax Payable = Taxable Income x Tax Rate
Tax Payable = $100,000 x 0.34
Tax Payable = $34,000

Therefore, the tax payable for The Glorious Vander Built Denim Slacks Company is $34,000. This means that they will need to pay this amount to the government as their income tax for the year. It is important for businesses to calculate and pay their taxes accurately and on time to avoid penalties and legal consequences.
Hello! The Glorious Vander Built Denim Slacks Company has a taxable income of $100,000. Given a 34% tax rate, you can calculate the tax payable by multiplying the taxable income by the tax rate.

To do this, simply use the formula: Tax Payable = Taxable Income x Tax Rate.

In this case, the Tax Payable = $100,000 x 0.34 (34% expressed as a decimal).

Upon calculation, you'll find that the tax payable for the company amounts to $34,000. This means that the Glorious Vander Built Denim Slacks Company is required to pay $34,000 in taxes based on their taxable income of $100,000 and the 34% tax rate.

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Previous Page Next Page Page 3 of 13 Question 3 (1 point) A ________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. a) unit investment trust b) equity fund c) hedge fund d) commingled fund e) money market fund

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A hedge fund is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.

What do you mean by hedge fund?

A hedge fund is a type of investment fund that pools money from accredited individuals or institutional investors to invest in a wide range of assets, such as stocks, bonds, commodities, currencies, and derivatives, with the aim of generating high returns. Hedge funds are typically structured as limited partnerships or limited liability companies, and they are managed by professional portfolio managers who use a variety of investment strategies, including long and short positions, leverage, and derivatives, to achieve their investment objectives. Hedge funds are known for their flexibility, agility, and ability to generate high returns, but they also carry higher risk and are typically only available to wealthy and sophisticated investors.

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149. An investment in training should require a cost - benefit analysis. True False

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An investment in training should require a cost - benefit analysis. True. Conducting a cost-benefit analysis can help organizations determine whether the benefits of training outweigh the costs.

The analysis involves identifying the costs associated with training, such as course fees, materials, and instructor salaries, and then estimating the benefits that the organization will receive from the training, such as increased productivity, improved quality, and reduced turnover. If the benefits are expected to exceed the costs, then the investment in training can be justified. However, if the costs outweigh the benefits, then the organization may need to reconsider its training plans or look for alternative solutions. A cost-benefit analysis can help organizations make informed decisions about how to allocate their resources and prioritize their investments in training and development.

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Edward is married and files a joint return. He reports the following items of income and loss for the year: Salary $ 120,000 Activity A (passive) 22,000 Activity B (nonbusiness rental real estate) (42,000) If Edward actively participates in the management of Activity B, what is his AGI for the year and what is the passive loss carryover to next year?

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Edward's AGI for the year is $117,000, and the passive loss carryover to the next year is $17,000.

To determine Edward's AGI for the year and passive loss carryover to next year:  

To determine Edward's AGI for the year and the passive loss carryover to next year, we will consider his salary, Activity A, and Activity B.

1. Salary: Edward's salary is $120,000.
2. Activity A (passive): The income from Activity A is $22,000.
3. Activity B (nonbusiness rental real estate): The loss from Activity B is $(42,000). Since Edward actively participates in the management of Activity B, he may be eligible to deduct up to $25,000 of the loss against his non-passive income.

Now, let's calculate Edward's AGI and passive loss carryover:

1. AGI Calculation: Add the salary and Activity A income and subtract the allowed portion of Activity B loss (up to $25,000).
  AGI = $120,000 (salary) + $22,000 (Activity A) - $25,000 (allowed portion of Activity B loss)
  AGI = $117,000

2. Passive Loss Carryover Calculation: Determine the remaining unused loss from Activity B to be carried over to the next year.
  Passive Loss Carryover = Total Activity B loss - Allowed portion of Activity B loss used in AGI calculation
  Passive Loss Carryover = $42,000 - $25,000
  Passive Loss Carryover = $17,000

In conclusion, Edward's AGI for the year is $117,000, and the passive loss carryover to the next year is $17,000.

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Because the initial start-up costs were high, it may take longer to recover, but it is too soon to determine the long-term success. (True or False)

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True. High initial start-up costs can result in a longer time needed to recover the invested amount. However, it is important to note that long-term success cannot be determined solely based on start-up costs.

Factors such as the company's business model, market demand, growth potential, and effective management can significantly influence the ability to recover costs and achieve success in the long run. Additionally, innovative strategies and adaptation to changing market conditions can contribute to overcoming initial expenses and achieving profitability.

Therefore, while high costs may prolong the recovery period, it is indeed too soon to determine the long-term success of a business without considering other influential factors.

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Given the following information, calculate the effective borrowing cost (rounded to the nearest tenth of a percent). Loan amount: $166,950, Term: 30 years, Interest rate: 8 %, Monthly Payment: $1,225.00, Discount points: 2, Other Closing Expenses: $3,611.
A. 7.7%
B. 8.2%
C. 8.5%
D. 9.1%

Answers

To calculate the effective borrowing cost, we need to consider the loan amount, term, interest rate, monthly payment, discount points, and other closing expenses.

Here's a step-by-step explanation:

1. Calculate the total discount points cost:
Loan amount × Discount points percentage = $166,950 × 0.02 = $3,339.

2. Calculate the total closing costs:
Discount points cost + Other closing expenses = $3,339 + $3,611 = $6,950.

3. Adjust the loan amount to account for closing costs:
Loan amount - Total closing costs = $166,950 - $6,950 = $160,000.

4. Calculate the total interest paid over the term of the loan:
(Monthly payment × Number of payments) - Adjusted loan amount = ($1,225 × 360) - $160,000 = $441,000.

5. Calculate the average annual interest paid:
Total interest paid ÷ Term = $441,000 ÷ 30 = $14,700.

6. Calculate the effective borrowing cost:
(Average annual interest paid ÷ Adjusted loan amount) × 100 = ($14,700 ÷ $160,000) × 100 ≈ 9.2%

The effective borrowing cost is approximately 9.2%, which is closest to option D (9.1%).

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: (b) Given that nothing else is borrowed in the near future, the length of time it will take a government to completely eliminate its stock of debt will be entirely dependent on how much more annual repayments exceed the annual interest expenses. The interest expense portion of the debt is a function of the present stock of debt, y, and is given by i(y) = y - y2 The amount of money that the government repays to reduce its debt stock is assumed to be a fraction, a, of the present stock of debt. Repayment is done at the end of each financial year. (i) Solve for the present stock of debt, y, as a function of t. (ii) What will happen to government debt as t → 00? Justify your response.

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Given that nothing else is borrowed in the near future, the length of time it will take a government to completely eliminate its stock of debt will be entirely dependent on how much more annual repayments exceed the annual interest expenses. The interest expense portion of the debt is a function of the present stock of debt, y, and is given by i(y) = y - y2. The amount of money that the government repays to reduce its debt stock is assumed to be a fraction, a, of the present stock of debt. Repayment is done at the end of each financial year.

To solve for the present stock of debt, y, as a function of t, we can use the following formula:

y(t) = (a / (1 + r)) * [1 - (1 + r) ^ (-t)] * y0

Where:

y0 is the initial stock of debt

r is the interest rate

a is the fraction of the present stock of debt that is repaid each year

t is the number of years

To find out what will happen to government debt as t → 0, we can take the limit of y(t) as t approaches 0:

lim y(t) = y0

This means that as time approaches 0, the present stock of debt will approach its initial value.

Please note that this is just an example and actual calculations may vary depending on the specific details of the government’s debt repayment plan.

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other things the same, in the open-economy macroeconomic model, if the real exchange rate rises, the

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Answer: Other things the same, in the open-economy macroeconomic model, if the real exchange rate rises, the country's net exports will decrease. This is because the increase in the real exchange rate makes the country's goods relatively more expensive for foreigners, leading to a decrease in exports. At the same time, the increase in the real exchange rate makes foreign goods relatively cheaper for domestic consumers, leading to an increase in imports. As a result, the country's net exports decrease, and the trade balance moves towards a deficit.

Explanation: BRAINLIST?

Other things the same, in the open-economy macroeconomic model, if the real exchange rate rises, the trade balance will tend to improve.

This is because a rise in the real exchange rate makes domestic goods relatively more expensive than foreign goods, thus leading to an increase in imports and a decrease in exports. As a result, the net exports will decrease, leading to a smaller trade deficit or a larger trade surplus.

In the short run, an improvement in the trade balance can lead to an increase in aggregate demand, as higher net exports increase the demand for domestic goods and services. This can lead to an increase in output, employment, and income. However, in the long run, the effect of a rise in the real exchange rate on the trade balance is likely to be offset by other factors, such as changes in relative prices and competitiveness.

Moreover, the impact of a rise in the real exchange rate on the economy also depends on the nature of the exchange rate regime and the monetary policy. Under a fixed exchange rate regime, a rise in the real exchange rate requires an adjustment in the nominal exchange rate, which may be difficult to achieve without a corresponding change in the monetary policy.

Under a flexible exchange rate regime, the exchange rate adjusts automatically to changes in the real exchange rate, but this may also lead to volatility and uncertainty in the exchange rate. Overall, the effect of a rise in the real exchange rate on the economy is complex and depends on various factors.

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production is efficient if the economy is producing at a point question 17 options: on the production possibilities frontier. outside the production possibilities frontier. on or inside the production possibilities frontier. inside the production possibilities frontier.

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Production is efficient if the economy is producing at a point on or inside the production possibilities frontier.

The production possibilities frontier (PPF) represents the maximum amount of goods and services that an economy can produce with its given resources and technology.

Points on the PPF represent efficient production because all available resources are being used to produce goods and services. Points inside the PPF represent inefficient production because resources are being underutilized, and the economy could produce more goods and services without additional resources or technology.

On the other hand, points outside the PPF are unattainable with the current level of resources and technology, and represent production levels that can only be achieved by increasing resources or improving technology.

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Exercise 7-49 (Algorithmic) Depreciation Methods Clearcopy, a printing company, acquired a new press on January 1, 2019. The press cost $171,600 and had an expected life of 8 years or 4,500,000 pages and an expected residual value of $15,000. Clearcopy printed 649,500 pages in 2019. Do not round intermediate calculations. If required, round your answers to the nearest whole dollar. Required: 1. Compute 2019 depreciation expense using the: 2019 Straight-line method a b Double-declining-balance method Units-of-production method C. 2. What is the book value of the machine at the end of 2019 under each method? Book Value $ Straight-line method Double-declining-balance method $ Units-of-production method

Answers

Accumulated depreciation at the end of 2019 = $22,840.40 Book value = Cost - Accumulated depreciation Book value = $171,600 - $22,840.40 = $148,759.60

1a. Straight-line method depreciation expense for 2019 can be calculated as:
depreciation expense = (Cost - Residual value) / Expected life
Depreciation expense = ($171,600 - $15,000) / 8
Depreciation expense = $19,200
b. Double-declining-balance method depreciation expense for 2019 can be calculated as:
Depreciation rate = 2 / Expected life
Depreciation rate = 2 / 8
Depreciation rate = 0.25
Depreciation expense = Book value x Depreciation rate
Book value = Cost - Accumulated depreciation
Book value = $171,600 - $0 = $171,600
Depreciation expense = $171,600 x 0.25 = $42,900
c. Units-of-production method depreciation expense for 2019 can be calculated as:
Depreciation rate = (Cost - Residual value) / Expected total units
Depreciation rate = ($171,600 - $15,000) / 4,500,000
Depreciation rate = $0.0352 per page
Depreciation expense = Depreciation rate x Actual units produced in 2019
Depreciation expense = $0.0352 x 649,500 = $22,840.40

2.a. Book value at the end of 2019 using the straight-line method can be calculated as:
Book value = Cost - Accumulated depreciation
Accumulated depreciation = Depreciation expense x Years used
Accumulated depreciation = $19,200 x 1
Accumulated depreciation = $19,200
Book value = $171,600 - $19,200 = $152,400


b. Book value at the end of 2019 using the double-declining-balance method can be calculated as:

Book value = Cost - Accumulated depreciation
Accumulated depreciation = Depreciation expense x Years used
Accumulated depreciation = $42,900 x 1
Accumulated depreciation = $42,900

Book value = $171,600 - $42,900 = $128,700


c. Book value at the end of 2019 using the units-of-production method can be calculated as:

Depreciation expense per unit = (Cost - Residual value) / Expected total units
Depreciation expense per unit = ($171,600 - $15,000) / 4,500,000
Depreciation expense per unit = $0.0352 per page
Depreciation expense for 649,500 pages printed in 2019 = $0.0352 x 649,500 = $22,840.40
Accumulated depreciation at the end of 2019 = $22,840.40

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Peter has a housing loan with UOB Bank before the COVID19 pandemic broke out. The details of the loan are as follows: Principal: $1,000,000 Interest rate: 4% per annum Tenure: 25 years Repayment: Amortization with monthly repayment. The lives of many were affected with jobs lost and businesses declining by the pandemic. Peter was adversely affected, too, and was unable to service his loan. Many banks, UOB included, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief. When this was announced, Peter had just paid the 120th instalment of his housing loan. Compute the monthly repayment before the pandemic broke out?

Answers

Peter's monthly repayment before the pandemic broke out was $5,381.63. So, the answer is $5,381.63

 To calculate the monthly repayment:

To compute the monthly repayment before the pandemic broke out, we can use the formula for amortization:

Monthly Repayment = [P x R x (1+R)^N] / [(1+R)^N - 1]

Where:
P = Principal = $1,000,000
R = Monthly Interest Rate = 4% / 12 months = 0.00333
N = Total Number of Payments = 25 years x 12 months per year = 300

Plugging in the values, we get:

Monthly Repayment = [1,000,000 x 0.00333 x (1+0.00333)^300] / [(1+0.00333)^300 - 1]
Monthly Repayment = $5,381.63

Therefore, Peter's monthly repayment before the pandemic broke out was $5,381.63.

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In class, we saw that commercial banks are particularly important intermediaries in the financial system. Provide some reasons for the importance of commercial banks. (12.5 points) ii) Provide arguments in favor and against central bank independence. If you had to vote in favor or against the independence of the Fed, what would you vote for and why?

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Commercial banks play a crucial role in the financial system as they serve as intermediaries between borrowers and lenders. There are a number of debates in favor of  central bank independence which include insulation from political influence, credibility, and long-term perspective while debates against the same include points like lack of accountability, economic inequality, and capture by special interests.

Commercial banks are important because -

1. Mobilization of savings: Commercial banks are responsible for mobilizing savings from individuals and businesses and channeling them towards productive investments. This helps in the efficient allocation of resources in the economy.

2. Credit creation: Commercial banks can create credit by extending loans and advances to borrowers. This facilitates economic growth and development by providing businesses and individuals with the necessary funds to carry out their activities.

3. Payment system: Commercial banks provide a means for individuals and businesses to make payments and transfer funds to one another. This helps in facilitating transactions in the economy.

4. Financial stability: Commercial banks help in maintaining financial stability by managing risks and ensuring the safety of depositors' funds.

Moving on to central bank independence, there are arguments both in favor and against it.

Arguments in favor of central bank independence include -

1. Insulation from political influence: Central bank independence helps in insulating monetary policy decisions from political influence, which can be detrimental to the economy.

2. Credibility: An independent central bank is likely to be more credible in its actions and decisions, which can help in anchoring inflation expectations and maintaining price stability.

3. Long-term perspective: An independent central bank can take a long-term perspective in its decision-making, which can help in promoting sustainable economic growth.

Arguments against central bank independence include -

1. Lack of accountability: An independent central bank may lack accountability to the public and elected officials, which can undermine democratic principles.

2. Economic inequality: Central bank policies may exacerbate economic inequality, and an independent central bank may not be held accountable for its role in this.

3. Capture by special interests: An independent central bank may be susceptible to capture by special interests, which can lead to policies that benefit a few at the expense of the many.

If I had to vote in favor or against the independence of the Fed, I would vote in favor of independence. This is because an independent central bank can make decisions based on economic considerations rather than political pressures, which can lead to better outcomes for the economy in the long run. Additionally, the Fed has a strong track record of maintaining price stability and promoting economic growth, which further strengthens the case for independence.

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In the last decade, free cash flow has been associated with special financial activities such as:

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FCF is an important financial metric that has been associated with various special financial activities in the last decade, such as mergers and acquisitions, stock buybacks, dividend payments, and debt reduction. These activities can signal a company's financial health and affect its attractiveness to investors.

Over the last decade, free cash flow (FCF) has become increasingly important in financial analysis and has been associated with various special financial activities. FCF represents the cash generated by a company that is available for distribution to its stakeholders after accounting for reinvestment in the business.

One key activity associated with FCF is mergers and acquisitions (M&A). Companies with strong FCF may use it to fund acquisitions or merge with other businesses to boost growth and market share. High FCF can signal a healthy financial position, making a company an attractive target for M&A.

Another financial activity related to FCF is stock buybacks. When a company has excess FCF, it may choose to buy back its own shares from the market, thereby reducing the number of outstanding shares and increasing the value of the remaining shares. This strategy can lead to higher earnings per share and can be appealing to investors.

Dividend payments are also linked to FCF. A company with sufficient FCF can afford to pay dividends to its shareholders, which can help attract and retain investors. A steady or growing dividend payout is often seen as a sign of a company's financial health and commitment to returning value to shareholders.

Debt reduction is another activity associated with FCF. Companies with ample FCF may choose to pay down their debt, which can help improve their credit ratings and reduce interest expenses. This action can lead to a more stable financial position and enable future borrowing at more favorable terms.

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William has not opted for the cash basis and pays his business's VAT quarterly His sales receipts for the quarter 1 November 2021 to 31 January 2022 were £39,600, including VAT, William has purchase invoices for the quarter showing VAT of £3,380, including a £93 VAT relating to entertaining his 8 staff at the Christmas party and a second invoice for a meal with a client which included £46 VAT He also tells you that in December 2021 he bought a car which he uses 5096 for private use. The £2,400 VAT paid on the new car is not included in the above. Required: What will William's het VAT liability be for the quarter to 31 January 2022? Select one a.E860 b. £3,200 c.£2,000d. £3,359

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William's VAT liability for the quarter to 31 January 2022 will be £3,359. The correct option is d.

To calculate this, we need to subtract the input VAT on purchases (£3,380) from the output VAT on sales (£39,600 x 1/6 = £6,600), giving us a VAT liability of £3,220.

However, we also need to add back the VAT on entertainment expenses (£93) and the VAT on the meal with the client (£46), which are not allowable for VAT purposes. This brings the total VAT liability to £3,359.

Additionally, the VAT paid on the car purchased for private use cannot be claimed as input VAT, so it is not included in the calculation of VAT liability for the quarter.

Overall, it is important for businesses to keep track of their input VAT and output VAT accurately, as well as understand the rules around allowable VAT deductions for expenses such as entertainment.

This can help ensure that they are correctly calculating their VAT liability and avoid any potential issues with HMRC. The correct option is d.

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A firm total revenue curve is given by TR=aQ-2Q2. Is it perfect competitive firm? explain why or why not

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TR=aQ-2Q2 represents a firm's total revenue curve. This isn't a fully competitive company.

The TR curve of a PC is linear and upward sloping. As a result, this curve cannot be associated with a competing firm.

Another way to look at it is that price = AR = TR /Q = a - 2Q.

This implies that P = a - 2Q, implying that price is a function of output, which cannot be true for the PC firm because pricing is the same at all output levels.

A perfectly competitive market is one in which all businesses sell the same product and where entering and exiting the market is simple since there are no barriers.

In the previous example, if you were beginning your own firm in a fully competitive market, you would need to sell a product that is identical to the items sold by other businesses in order to join the market more readily.

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Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180.If both firms bid the same price,the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero).The non-cooperative outcome in this situation is one firm bids $100,the other firm bids $180. Oboth firms bid $90 Oboth firms bid $180 O both firms bid s50. Oboth firms bid $100

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The best outcome for both firms, In the given prisoner's dilemma problem would be if they both bid $100 and cooperate with each other,  to maximize their chances of winning the contract, which is the non-cooperative outcome. So, the correct option is "both firms bid $100."

In the given prisoner's dilemma example involving 2 firms making sealed bids on a contract, the non-cooperative outcome is both firms bid $100. Here's the step-by-step explanation:

1. If both firms bid $100, they share the job equally and each earns $50 (half of their bid).


2. If both firms bid $180, they also share the job equally, but each earns $90 (half of their bid).


3. If one firm bids $100 and the other bids $180, the lower bidder (the one that bid $100) wins the contract and earns the full value of its bid ($100), while the other firm earns zero.

In a non-cooperative situation, both firms would try to maximize their individual profit without considering the other firm. If one firm chooses to bid $180, the other firm would rationally choose to bid $100 to win the contract. As a result, both firms will eventually bid $100 to maximize their chances of winning the contract, which is the non-cooperative outcome.

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if the price of movies increases, fewer consumers go to see movies. four different graphs all in the first quadrant labeled panel a. panel b. panel c. and panel d. panel a has a negatively sloped line. pabel b has a perfectly vertical line. panel c has a positively sloped line and panel d has a perfectly horizontal line. which panel's graph best describes this situation?

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The panel that best describes the situation where "if the price of movies increases, fewer consumers go to see movies" would be Panel A.

Panel A has a negatively sloped line, which represents a negative relationship between the price of movies and the number of consumers who go to see them. As the price increases (moving along the x-axis), the number of consumers decreases (moving along the y-axis), which is consistent with the given scenario. This is the most suitable graph among the options.

Panel B has a perfectly vertical line, which would indicate that the number of consumers does not change with changes in the price of movies. Panel C has a positively sloped line, which would imply that as the price of movies increases, more consumers go to see them, contradicting the given scenario. Lastly, Panel D has a perfectly horizontal line, which would indicate that the number of consumers remains constant regardless of the price.

Hence, the correct answer to describe scenario is Panel A.

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which of the following is a reason why the employment of a resource is inversely related to its price? as the price of a resource rises, the prices of the goods the resource helps produce will rise as well. thus, consumers will turn to cheaper substitute goods, increasing the amount of the resource needed to produce the more expensive good. as the price of a resource rises, the prices of the goods the resource helps produce will rise as well. thus, consumers will turn to cheaper substitute goods, reducing the amount of the resources needed to produce the more expensive good. as the price of a resource rises, the prices of the goods the resource helps produce will fall. thus, consumers will demand fewer of these goods, decreasing the amount of the resource needed to produce the cheaper good. as the price of a resource rises, the price of the goods the resource helps to produce will fall. thus, consumers will demand more of these goods, increasing the amount of the resource needed to produce the cheaper good.

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The employment of a resource is inversely related to its price as the price of a resource rises, the prices of the goods the resource helps produce will also rise. Thus, consumers will turn to cheaper substitute goods, reducing the resources needed to produce the more expensive good.

This is because when the price of a resource increases, the cost of producing goods that require that resource also increases.

As a result, consumers may choose to purchase substitute goods that are cheaper, which decreases demand for the more expensive goods.

This decrease in demand for the more expensive goods results in a decrease in the resources needed to produce those goods. Therefore, the employment of a resource is inversely related to its price.

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Widers Company has a balance in its Accounts Payable control account of 59.390 on January 1, 2012. The sudary ledger contain the counter Hate Company balance 52710 Janith Company balance 51.580 and Valdet Company During January, the following payable related transactions occurred Purchase Payments Returns Hale Company $6.460 $5.950 50 Janish Company 5.560 1.580 2550 Vile Company 6025 6.790 0 What is the January 1 balance in the Valdet Company subsidiary account Balance in the e in the Valdez Company subsidiary accounts e Textbook and Media What is the January 31 balance in the control account? Balance in the in the control account 5 eTextbook and Media Compute the balances in the subsidiary accounts at the end of the month Hale $ Janish 5 Valders Textbook and Media Which January transaction would not be recorded in a specialjournal

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To solve this problem, we need to prepare a schedule of accounts payable for January and use it to update the accounts payable subsidiary ledgers and control accounts.

Schedule of Accounts Payable:

Beginning Balance Purchases Payments Returns Ending Balance

Hale - $6,460 $5,950 $50 $520

Janish 51,580 $5,560 $1,580 $2,550 $52,010

Valdet - $6,025 $6,790 $0 $ 235

Total 59,390 $18,045 $14,320 $2,600 $52,765

(a) The January 1 balance in the Valdet Company subsidiary account is $0 since there was no balance at the beginning of the month.

(b) The January 31 balance in the control account can be calculated as the sum of the ending balances in the subsidiary accounts:

Accounts Payable Control Account Balance = Hale Company Subsidiary Balance + Janish Company Subsidiary Balance + Valdet Company Subsidiary Balance

Accounts Payable Control Account Balance = $520 + $52,010 + $235

Accounts Payable Control Account Balance = $52,765

(c) The balance in the subsidiary accounts at the end of the month are:

Hale Company: $520

Janish Company: $52,010

Valdet Company: $235

(d) The transaction that would not be recorded in a special journal is the returns made by Hale Company and Janish Company. Returns are not a common transaction and are usually recorded separately as a debit to Accounts Payable and a credit to Purchases Returns.

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Prairie Airlines purchased a 747 aircraft on January 1, 2016, at a cost of $30,000,000. The estimated useful life of the aircraft is 20 years, with an estimated residual value of $4,000,000. On January 1, 2018 the airline revises the total estimated useful life to 15 years with a revised residual value of $3,000,000. (20 Marks) Instructions: 1. Calculate the depreciation and carrying amount at December 31, 2018 using (a) the straight-line method. Depreciable Depreciation Annual Accumulated Carrying Year Cost Rate Depreciation Depreciation

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The annual depreciation expense with carrying amount at December 31, is $22,100,000.

Depreciable cost = Cost - Residual value

Depreciable cost = $30,000,000 - $4,000,000

Depreciable cost = $26,000,000

Annual depreciation rate = Depreciable cost / Useful life

Annual depreciation rate = $26,000,000 / 20 years

Annual depreciation rate = $1,300,000 per year

Therefore, the depreciation and carrying amount at December 31, 2018 using the straight-line method are:

Depreciation expense for 2016 = $1,300,000

Depreciation expense for 2017 = $1,300,000

Depreciation expense for 2018 = $1,300,000

Total accumulated depreciation at December 31, 2018 = $3,900,000

Carrying amount at December 31, 2018 = Cost - Accumulated depreciation - Residual value

Carrying amount at December 31, 2018 = $30,000,000 - $3,900,000 - $4,000,000

Carrying amount at December 31, 2018 = $22,100,000

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Many companies believe they have a role in promoting ______ ______ that goes beyond simply "giving back"

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Many companies believe they have a role in promoting social responsibility that goes beyond simply "giving back."

Social responsibility refers to the idea that businesses have an obligation to act in the best interest of society, including its employees, customers, and the broader community, and to address issues related to sustainability, social justice, and ethical behavior.

This can involve implementing sustainable business practices, supporting diversity and inclusion initiatives, and taking an active role in addressing social and environmental issues. By promoting social responsibility, companies can help to create a more just and sustainable world while also improving their own bottom line and reputation.

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Starbucks wants to launch its new cold-brewed coffee, but they are not sure what will be the reaction of usual customers. They decided to conduct an experiment in which 1000 Starbucks cardholder (or app holders) are randomly assigned to two groups. The first group is given free sample of the new cold-brewed coffee. Both groups are sent gift rewards to redeem at participating Starbucks stores. The Starbucks computer system showed that 240 of sent reward were redeemed by the group that tried the free samples, and 200 were redeemed by the group that did not. a. Draw the design of this field experiment diagrammatically. (5 marks) b. What are threats to internal validity of this experiment? (5 marks)

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a. The diagram for the field experiment would look something like this:

Random Assignment
      |
      V
Group 1 (Free Cold-Brewed Coffee) <--- Gift Rewards Sent --> 240 Rewards Redeemed
      |
      V
Group 2 (No Free Coffee) <--- Gift Rewards Sent --> 200 Rewards Redeemed

b. There are several threats to internal validity in this experiment, including:

1. Selection bias: Although the participants were randomly assigned to groups, there could still be differences between the two groups that affect the results. For example, one group might be more likely to redeem the rewards regardless of whether they tried the new coffee or not.

2. Hawthorne effect: Participants might change their behavior simply because they know they are being observed or because they received a free sample. This could affect the validity of the results.

3. Sampling bias: The experiment only includes Starbucks cardholders or app holders, which might not be representative of the general population. This could limit the generalizability of the results.

4. Confounding variables: There might be other factors that affect whether participants redeem their rewards, such as their location, time of day, or whether they are with friends or alone. These variables could affect the validity of the results.

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Far Side Mining mines minerals used in artistic paints. The mining process yields three products from a single process: red pigments, blue pigments, and a clay-like by-product. The three products emerge from a single mining process. For every ton (2000 lbs) of mineral, the "Red" department can manufacture 600 lbs of red pigment, the "Blue" department can manufacture 800 lbs of blue pigment, and 600 lbs of clay-like by-product emerge. The red and blue pigments require additional processing before they can be sold. Far Side sells the clay-like by-product in bulk to a secondary distributor. It costs Far Side $2.00/lb to transport the clay-like by-product to the secondary distributor. Far Side sells the clay-like by-product to the secondary distributor for $3.25/lb. In a typical month, Far Side converts 40 tons (80,000 lbs) of mineral into the various pigments and the by-product, for a total joint cost of $580,000 (14,500 $/ton). If 40 tons of minerals are used in production and Far Side refines the minerals further, Far Side incurs $43,000 in additional processing costs for the blue pigment, and $38,000 in additional processing costs for the red pigment. After the additional processing, Far Side can sell the red pigment for$15/lb and the blue pigment for $20/lb. Far Side uses the net realizable value method for the clay-like by-product, and the approximate relative sales value method for joint products (the blue and red pigments).
What is the joint cost applied to each pigment and the clay by-product, and the total applied to the three products?

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The joint cost applied to each pigment and the clay-like by-product is $189,189, $267,385, and $123,426, respectively, and the total joint cost applied to the three products is $580,000.

The total joint cost of $580,000 is allocated to the three products based on their relative sales values using the approximate relative sales value method. To calculate the joint cost applied to each product, we need to determine the total sales value of all three products combined.

For every ton (2000 lbs) of mineral, Far Side can produce 600 lbs of red pigment, 800 lbs of blue pigment, and 600 lbs of clay-like by-product. Therefore, the total sales value of all three products is:

Total sales value = (600 lbs of red pigment x $15/lb) + (800 lbs of blue pigment x $20/lb) + (600 lbs of clay-like by-product x $3.25/lb) = $27,700

To determine the joint cost applied to each product, we can use the following formula:

Joint cost applied = Total joint cost x (Sales value of product / Total sales value of all products)

Joint cost applied to red pigment = $580,000 x ($9,000 / $27,700) = $189,189

Joint cost applied to blue pigment = $580,000 x ($12,800 / $27,700) = $267,385

Joint cost applied to clay-like by-product = $580,000 x ($5,900 / $27,700) = $123,426

The total joint cost applied to the three products is the sum of the joint costs applied to each product:

Total joint cost applied = $189,189 + $267,385 + $123,426 = $580,000

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