In 2004, the Dominican Republic became a member of the Central America Free Trade Agreement (CAFTA).
Due to threats of defaulting on international obligations, the United States occupied the Dominican Republic (1916–1924); a following six-year period of peace and prosperity under Horacio Vásquez followed. From 1930 until his death in 1961, Rafael Leonidas Trujillo governed as a dictator. Despite being elected president in 1962, Juan Bosch was overthrown in a military coup in 1963.
U.S. military involvement ended the nation's final civil war in 1965, and Joaqun Balaguer's dictatorial dictatorship came next. Since 1978, the Dominican Republic has advanced toward representative democracy, and Leonel Fernández has served as president for the majority of the period following 1996. In 2012, Danilo Medina succeeded Fernández after defeating Hipólito Meja, an earlier president, by 51% of the electoral vote.
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According to the digital wallet overview video case, when adding a credit or debit card to your digital wallet, what security method is generally used to prevent someone else from adding your debit or credit card to their digital wallet?.
When adding a credit or debit card to your digital wallet, the security method that is generally used to prevent someone else from adding your debit or credit card to your digital wallet is a unique 16-digit token.
Although you did not include the video, it is easy to note that when adding a credit or debit card to a digital wallet, it is important to secure them so another person cannot add their details and in this way, steal from the wallet.
With this in mind, the use of a unique 16-digit token is important so as to authenticate the user to make sure he is the one adding the card.
What is a Digital Wallet?This refers to the wallet or place that a person's cryptocurrencies are kept and stored.
Hence, we can see that When adding a credit or debit card to your digital wallet, the security method that is generally used to prevent someone else from adding your debit or credit card to your digital wallet is a unique 16-digit token.
Although you did not include the video, it is easy to note that when adding a credit or debit card to a digital wallet, it is important to secure them so another person cannot add their details and in this way, steal from the wallet.
With this in mind, the use of a unique 16-digit token is important so as to authenticate the user to make sure he is the one adding the card.
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3. liabilities and net worth recall that the balance sheet equation states that net worth equals total assets minus total liabilities. identifying assets and recording them is one of the first steps in balance sheet preparation. in some instances, assets are acquired with cash. in others, often large purchases, they are acquired by securing debt (for example, a bank loan or a department store charge). regardless of how an asset is acquired, items purchased through financing have associated debt which is owed by you and must be repaid in the future. these items, orliabilities , are generally classified according to maturity. check the category to which each of the items belong. current liability long-term liability a 24-month home improvement loan from origination, 36-month automobile loan water bill car insurance outstanding principal on a second home, not due in the current year
The relationship between the three items on a balance sheet—assets, liabilities, and equity—is depicted by the accounting equation.
What is equity?The performing arts and entertainment sectors are represented by Equity, originally known as the British Actors' Equity Association.
The union was founded in 1930 by a group of West End actors, and it expanded to encompass actors and stage managers across the country as well as acquiring recognition in radio, cinema, and television. The majority of professionals whose work is seen on screen are currently represented by Equity, which merged the Variety Artistes' Federation in 1967.
Actors, singers, models, performers, directors, choreographers, designers, and stage managers were among its around 46,000 members as of the year 2020.
To prevent confusion with other artists and performers, Equity mandates that each member have a distinct professional name.
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What is the present value of the following payment stream, discounted at 8 nnually: $1,000 at the end of year 1, $2,000 at the end of year 2, and $3,000 at the end of year 3?
The present value of the following payment stream:
PV = $1,000/1.08 + $2,000/1.082 + $3,000/1.083
PV = $5,022.10
Present value (PV) is the contemporary value of a future amount of money or stream of coins flows given a particular rate of go back. Present value takes the destiny value and applies a reduction rate or the interest rate that would be earned if invested.
How do you decide present value?
The present value method is PV=FV/(1+i)n, in which you divide the future price FV with the aid of a thing of 1 + I for every length between gift and future dates. Input these numbers within the present value calculator for the PV calculation: The destiny price sum FV. Quantity of time durations (years) t, that is n within the components.
Why is present value important?
Present value is essential because it lets in buyers to examine values over time. PV can assist traders examine future economic advantages of current assets or liabilities used in areas like monetary modeling, inventory valuation, and bond pricing, primarily based on its destiny returns, traders can calculate present value.
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in the market economy, the primary channel through which buyers and sellers communicate with each other is
In the market economy, the primary channel through which buyers and sellers communicate with each other is price.
A market economy is an economic system in which the interactions of a country's individual citizens and businesses guide economic decisions and the pricing of goods and services. There may be some government intervention or central planning, but this term usually refers to a more market-oriented economy in general.
A market economy allows entrepreneurs to pursue profit by producing outputs that are more valuable than the inputs they consume, as well as the freedom to fail and go out of business if they do not.
Economists generally agree that market-oriented economies produce better economic outcomes, but they disagree on the exact balance of markets and central planning that is best for a country's long-term prosperity.
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Compensation made by the payment of money or the return of property, thus clearing a lien from the record, is known as?
Compensation made by the payment of money or the return of the property, thus clearing a lien from the record, is known as judgment compensation.
Financial compensation refers to the act of giving money or other things of economic value to a person in exchange for goods, labor, or the cost of an injury sustained. The definition of compensation is something of value given in exchange for something else. An example of compensation is the money a company pays its employees for their work. If a person is in a car accident and injures someone, money paid to the injured victim for the damage is an example of compensation.
Compensation is the combination of salary, wages, and benefits an employee receives for performing a particular job. This may include annual or hourly wages combined with bonuses, benefits, and incentives. Compensation is the sum of cash and in-kind benefits you give to your employees in exchange for the work they do for your company.
Disclaimer:- your question is incomplete, please see below for the complete question.
a. abstract of title.
b. satisfaction of the judgment.
c. judgment compensation.
d. dismissal of attachment.
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dée trader opens a brokerage account and purchases 300 shares of internet dreams at $40 per share. she borrows $4,000 from her broker to help pay for the purchase. the interest rate on the loan is 8%. (
Dee's margin is the initial purchase price less the $4,000 borrowed, and $8,000 total. The price of the stock is $40 divided by 300 shares, or $12,000 total. Given that $4,000 was borrowed from the broker. Subtract your margin requirement from the value of your collateral to determine it.
When a security's price increases or decreases, the gain or loss is proportionally much bigger to the real investment amount.
The collateral you keep in your brokerage account above the minimum margin required is known as remaining margin. Consider the following scenario: You wish to short 100 shares of Corp. X, which are now trading at $20 each.
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Why does the uit selling proce increase when expected volume is lower than budgeted volume?
The unit selling price increase when the expected volume is lower than the budgeted volume because fixed costs and desired ROI have to be spread over fewer units.
It's important to calculate your selling price because it permits you to reveal traits and make predictions at the marketplace. If you are a start-up manufacturer, it may be a wonderful manner to decide a pricing strategy.
to Calculate Selling Price Per Unit. Determine the overall price of all devices bought. Divide the overall price by the number of devices bought to get the price fee. Use the promoting fee system to calculate the very last fee: Selling Price = Cost Price + Profit Margin.
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Businesses must first be responsible to their ________, who are primarily concerned with earning a profit.
Businesses must first be responsible to their owners, who are primarily concerned with earning a profit.
This is further explained below.
What is Business?Generally, Businesses are required to first fulfill their obligations to their owners, who are preoccupied mainly with maximizing their financial returns.
In conclusion, A person may earn a livelihood or make money via the practice of running a business, which entails the production of goods as well as their purchase and sale.
Additionally, it refers to "any activity or business undertaken with the purpose of generating a profit."
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A ________ takes data from the data manufacturers, cleans and processes the data, and then stores it.
A data warehouse takes data from the data manufacturers, cleans and processes the data, and then stores it.
What is a data warehouse?An enterprise data warehouse (EDW), also referred to as a data warehouse in computing, is a system for reporting and analysis of data and is regarded as a key element of business intelligence. Data warehouses (DWs) are the central repositories for combined data from one or more different sources. They maintain a single repository for both recent and old data, which is utilized to generate analytical reports for usage by employees across the entire company.
Data from operational systems are transferred and stored in the warehouse (such as marketing or sales). Before being used in the DW for reporting, the data may go via operational data storage and require data cleansing for extra activities to ensure data quality.
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computech estimates it will need 100,000 chips a year if sales go as expected. but if sales are slow, fewer chips will be needed. this isn’t an issue with supplier 2; its price is the same at any quantity. however, supplier 1’s price per chip will be $1.95 if computech buys less than 90,000 during the year. if computech only needs 84,500 chips, which supplier would be more economical?
We need to make some changes to the spreadsheet in order to find the answer to this query, altering the "number of chips needed" to 84,500.
Then, Supplier 1's "cost per chip" will climb to $1.95, and the price of their order will be $1.95 x 84,500 = $164,775.
Given that the pricing remains the same, the order cost at Supplier 2 will be $1.87 x 84,500 ($158,015).
There will be 845 defective chips at Supplier 1 and 1690 at Supplier 2, and the cost to replace them will be $1690 and $3380, respectively.
There are $8,450 and $6,760 in total cost-connectors, respectively. 2% of $164,775 for Supplier 1 and 5.4% of $158,015 for Supplier 2 equal $3,295.5 and $8,532.81 in total inventory costs, respectively.
For Suppliers 1 and 2, the total shipping expenses are $0.02 x 84,500 ($1,690) and $0.03 x 84,500 ($2,535), respectively.
Following these modifications, Supplier 1's total cost is $179,900.5, whereas Supplier 2's total cost is $179,222.81.
Therefore, Supplier 2 is a superior option because its overall cost is now lower.
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From the perspective of managing a budget, what term is used to describe the difference between the amount of money that was budgeted and the actual amount of money spent?.
Budget variance is a term used to describe the discrepancy between the amount of money allocated and the actual amount spent when managing a budget.
A budget variance is a recurring metric used by organisations, businesses, or individuals to express the discrepancy between budgeted and actual numbers for a certain accounting category. Positive variations or gains are referred to as favourable budget variances, whereas negative deviations, which represent losses or shortages, are referred to as unfavourable budget variances. Forecasters' imperfect ability to predict future expenditures and revenues leads to budget variations.
The sum of money spent to purchase a good or asset is referred to as the actual amount in accounting. This could be the price of the product in the past, present, or future. This is not what the management has budgeted or expected because such prices could also include vendor costs for delivery, setup, and testing.
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henry is a 30 year old father of three children he has had difficulty finding and keeping employment
a. Due to a lack of insurance, treatment cannot be refused. Since there are therapeutic programs available to aid with financial requirements, housing, etc., Henry would be able to receive treatment in a community health facility and social services should be able to help him with basic essentials and personal needs.
b. I believe that the patient's mental disorder would be difficult to treat since he lacks the fundamentals, in accordance with Maslow's hierarchy of requirements (water, food, shelter,etc)
c. Henry's fundamental or personal needs (food, shelter, etc.) should be met, and his treatment plan should be followed.
The goal of therapeutic programs are kind of treatments used to assist young adults in the contemporary environment. They provide a friendly setting where personal abilities can develop and distractions are minimized.
Henry is a 34-year-old father of three children. He has had difficulty finding and keeping employment because of chronic alcoholism and marijuana use. His substance abuse issues have strained his marriage, and he is currently separated from his wife and children. The bank has foreclosed on his mortgage, and he is now homeless. During the past year, Henry has become despondent and delusional.
a. What resources would be available for a homeless mentally ill client without health insurance or financial resources to meet basic needs?
b. What are the barriers to providing care for the homeless individual with mental illness?
c. What is the coordinating role of the psychiatric nurse case manager in the discharge planning phase of care for Henry?
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the total cost (valued in dollars) of skipping practice and going to the movies (including the opportunity cost of time) is .
The total cost of skipping practice and going to the movies (including the opportunity cost of time) for this assistant coach is equal to $24.
Given the following data:
Admission fee = $9.
Earnings = $15 per hour.
What is an opportunity cost?An opportunity cost is also referred to as alternative forgone and it can be defined as the value, profit, or benefits that are given up and forfeited by an individual or business firm, in order to choose or acquire something that is deemed most significant at a particular point in time.
How to determine the total cost?The total cost of skipping practice and going to the movies (including the opportunity cost of time) for this assistant coach can be calculated by using this formula:
Total cost = Earnings + Admission fee
Total cost = $15 + $9
Total cost = $24.
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Complete Question:
You work as an assistant coach on the university swim team and earn $15 per hour. One day, you decide to skip the hour-long practice and, instead, go to the movie theater, which has an admission fee of $9. What is the total cost (valued in dollars) of skipping practice and going to the movies (including the opportunity cost of time)?
services high in qualities have characteristics that the buyer can evaluate after purchase.
Services high in experience qualities have characteristics that the buyers can evaluate before purchase.
What is high quality of services?
When a customer's expectations are met, the service is said to be of high quality. Quality of service describes or measures a service's entire performance, especially the performance felt by network users, whether it be a cloud computing service, a phone service, or a computer network. The key to provide first-rate customer service is being pleasant. Try to welcome everyone with a smile at all times, and be considerate and friendly.
Businesses are considered to have good service quality when they meet or surpass expectations. Consider going to a fast food restaurant for dinner, where you can count on getting your food five minutes after placing your order. Your order is called minutes before you had anticipated it to be once you have got your drink and chosen a table.
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How would you quickly find the total number of water samples (or test tubes) collected across all of the lakes in your study?
To quickly find the total number of water samples (or test tubes) collected across all of the lakes in your study I will B) sum(FloridaLakes$NumSamples)
What is sampling?Sampling is the process of choosing a subset of people (a statistical sample) from a statistical population in order to estimate the characteristics of the entire population. It is used in statistics, quality control, and survey technique. Statisticians try to get samples that are typical of the population under consideration. In situations where it is impractical to assess the complete population, sampling offers insights and is more affordable and quicker than doing so.
Each observation quantifies one or more characteristics of distinct things or people, such as their mass, position, color, or weight.
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the education level of a consumer is a(n) variable that can be used to identify consumer markets.
Consumer markets can be determined using Demographic variables like consumer education levels.
Businesses utilize Demographic variables to determine the product preferences and purchase patterns of their customers by looking at the socioeconomic features of a group. Businesses can create a customer profile based on the characteristics of their target market. In order to generate marketing materials, they can identify their core clients or target market.
Due to the substantial amount of freight they transport, Demographic variables are frequently referred to as "boxcar variables." The workforce's age, gender, and race are particularly fascinating to organizational psychologists. While they are generally unimportant for most other employment, age and gender are very relevant for physically demanding jobs. No of the occupation, race has no bearing on performance. It's common knowledge that managers make judgments at work under the impact of prejudices based on Demographic variables. This presumption has been proven to be false by recent studies on the individuation process.
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The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the?
The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the Environmental and industry analysis.
What is a business plan?A business plan is a formal written document that outlines the objectives of the company, how those objectives will be attained, and when they will be accomplished. The nature of the company, background information on the organization, financial estimates for the organization, and the techniques the organization plans to use to meet the stated goals are also covered. This document functions as a road map (a plan) that gives the company direction when taken as a whole.
Written business plans are frequently necessary in order to apply for a bank loan or another type of financing. Using templates and guidance, like those offered by the Small Business Administration in the United States, can make it easier to create a business plan.
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Which is a brainstorming tool used for identifying underlying causes to a problem?
Fishbone diagram is used to identify the cause-and-effect relationship.
What is brainstorming?
The brainstorming is a technique that is used to develop new ideas for a new ongoing problem.
There is a special tool that is used to identify the underlying causes to a problem called fishbone diagram. The fishbone is a type of cause-and-effect diagram. Firstly, the cause of the problem is found out and after this the possible effects that problem is find out. After, analyzing the causes and effects a proper idea to deal with this problem is identified. The fishbone diagram is also known as the root analysis system in which the problem is identified from the start and its solution. Hence, the tool used is known as the fishbone.
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Reference the max process: for burgers, the customer entering at which time has the longest wait time? group of answer choices 9pm 7pm 6pm all customers have the same wait time 8pm
The customer entering at 8pk has the longest wait time.
How to illustrate the informationIt should be noted that for burgers, throughput rate
From 6-7 = 48 / hourFrom 7-8 = 48 / hourFom 8-9 = 48 / hour.The inventory will increase by 12 each hour from six to eight ( 60 incoming orders against capacity of 48). After the first two hours, the stock will continue to increase until it reaches 24 hamburgers at eight o'clock. 48 orders will be handled between 8 and 9 AM, with 16 still outstanding by 9 PM ( because the order rate will now fall from 60 to 40)
The payment procedure won't be impacted because the total putut from packaging will be 48 + 40 = 88 during the first two hours and 48 + 30 = 78 during the final hour.
Since there will be 24 people in front of consumers arriving at 8 PM, they will have to wait the longest.
Therefore, the correct option is 8pm.
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for each of the following scenarios, indicate whether the individual made a correct choice or an incorrect choice when preparing a budget. correct choice incorrect choice david is a sales rep who, based on last year, averaged $2,500 of monthly commission before taxes. he should include this in his budget. sharon was just notified that her contribution to the company’s health plan is increasing by 3.5%. it’s a company expense, so sharon doesn’t include it in her budget. as scott was reconciling his checkbook, he realized that he incurred $15.75 last month for atm withdrawals. he looked back at the last six months and realized that he averaged the same amount each month. this is an unexpected expense and shouldn’t be listed in his budget. every year the mendozas buy a big item or take a trip with a single annual bonus jesse receives. they included this in their budget.
Indicating whether the individual made a correct choice or an incorrect choice when preparing a budget is as follows:
Correct Choice:1. David should include the monthly commission before taxes in his budget.
2. Since it’s a company expense, Sharon doesn’t include it in her budget.
4. The Mendozas included this in their budget.
Incorrect Choice:3. This unexpected expense shouldn’t be listed in his budget.
What is a budget?A budget is a planned estimate of income and expenditure for a set period.
Budgets are usually prepared and re-evaluated periodically (annually, quarterly, or monthly) to help understand variances and corrective actions.
Thus, indicating whether the individual made a correct or incorrect choice when preparing a budget has been completed.
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a primary beneficiary has died before the insured in a life insruance policy. a contingent beneficiary
Earnings go to beneficiaries will happen if a primary beneficiary has died before the insured in a life insurance policy.
What is primary beneficiary?The primary beneficiary lives under the uniform simultaneous death act if both the insured and the primary beneficiary die in circumstances where it is impossible to determine who died first, unless otherwise provided in the insurance contract.
Accidental death and disability insurance, as its name suggests, covers such occurrences. Insurance will also cover you even if a car accident results in the loss of limbs, sight, hearing, speech, etc.
Thus, Earnings go to beneficiaries.
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Answer:
they will pay the contingent beneficiary if go to the estate of the insured
Explanation:
be 2.3 discuss whether the changes described in each of the cases below require recognition in the cpa’s audit report as to consistency. (assume that the amounts are material.
(A) A change in the way the accounting rules are applied has an impact on the financial statements' consistency and, as a result, their comparability if the company changes the way it values its inventory. The modification must be discussed in an explanatory paragraph in the auditor's report.
(b) The CPA's audit report does not need to contain a comment regarding consistency if the company sold one of its two subsidiaries that had been included in its consolidated statements for prior years. Although no accounting concept was altered or the way by which it was applied, a business transaction has affected how the financial statements are comparable.
(c) The comparability of the financial statements has been impacted if the company reduced the projected remaining useful life of plant property due to obsolescence. The adjustment is not a question of consistency; instead, it is a change in accounting estimate necessitated by new circumstances and includes neither a difference in the accounting principles used consistency.
What is CPA?A credentialed accounting practitioner may use the title "certified public accountant" (CPA). The Board of Accountancy for each state issues the CPA license.
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The complete question is:
BE2-3 Discuss whether the changes described in each of the cases below require recognition in the CPA's audit report as to consistency. (Assume that the amounts are material.)
(a) The company changed its inventory method to FIFO from weighted-average, which had been used in prior years.
(b) The company disposed of one of the two subsidiaries that had been included in its consolidated statements for prior years.
(c) The estimated remaining useful life of plant property was reduced because of obsolescence.
For lindsey’s dissertation, she has e-mails sent out to people 4 times a day for 4 weeks. In these e-mails, she asks about current emotional experiences and activities. What method is she using?.
During Lindsey's dissertation as she sent a few e-mails. when she asks about emotional experiences and activities, Lindsey was doing experience sampling.
What is an e-mail?Electronic mail, or e-mail, refers to messages sent and received by digital computers across a network. Computer users on a network can transmit text, graphics, sounds, and animated images to one another via an e-mail system. Or, Electronic mail (e-mail) is a computer-based program that allows users to communicate via message exchange. People can exchange emails fast thanks to a global email network. The electronic equivalent of a letter is e-mail, which offers benefits in flexibility and immediacy. E-mail, to put it simply, is a message that can include text, files, photos, or other attachments and is sent across a network to a specific person or group of people.
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all of the following are ways you can develop a personal brand: preparing a brief speech that describes who you are and what problems your skills can solve, creating an individual tagline that separates you from other candidates, and . group of answer choices showing how you are similar to other job candidates emailing all of your contacts a five-minute multimedia presentation that profiles your skills and experience creating an attractive résumé distributing business cards whenever you have an opportunity
all of the following are ways you can develop a personal brand: preparing a brief speech that describes who you are and what problems your skills can solve, creating an individual tagline that separates you from other candidates and creating an attractive résumé.
(d). creating an attractive résumé.
What is a personal brand?Personal branding is the deliberate and purposeful effort to shape how the public perceives an individual by boosting their reputation, presenting themselves as thought leaders in their field, and setting themselves apart from competitors. The goal is to help the individual progress professionally, expand their network of influence, and make a bigger impact.
Finding your individuality, developing a reputation around the qualities you want to be recognized for, and afterward allowing yourself to be recognized for them are all steps in the process of personal branding. The ultimate aim is to produce something that has a message and can be made money.
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Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements. true false
Negotiated contract purchase means agreeing to a contract that allows changes in purchasing arrangements is a true statement.
Negotiation is an interactive process undertaken to reach an agreement. This process involves two or more people who have different views but want to reach some common resolution. Negotiation Requirements To carry out the negotiation process there are at least 2 things that must be possessed, namely: It is carried out with a minimum of 2 or more people.
The following are the objectives of the negotiation, namely:
Reach mutual agreementReducing portion differences and conflicts on each sideUnite all opinions so that it can benefit both parties or more in the negotiation (achieve a win-win solution)Overcoming or adjusting differences to get something from the other party without being forcedYou can learn more about negotiation here brainly.com/question/9312091
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Real gains in productivity require innovations to ____.
a. human practices
b. business practices
c. corporate process
d. business politics
Real gains in productivity require innovations to business practices.
Any strategy or action used by a company to accomplish its goals. Making money is a business's ultimate goal. Business procedures are how it makes an effort to do so in the most economical way possible.
Business Practice Improvement (BPI) conducts research and analytics to simplify and reduce redundancies in order to give outcome-based, data-driven solutions to business processes and complicated problems.We provide a special fusion of corporate experience akin to consulting with knowledge of and insight into collegiate culture.Finding and using the best operational strategies to accomplish your business goals is a best business practice. The procedure entails keeping up with the most recent operational trends of prosperous organizations and contrasting them with your methods of managing the same operations.Using best practices in business entails studying how other organizations have managed different company processes. Benchmarking is the most popular method for accomplishing this. It enables you to compare your organization to other successful enterprises and identify opportunities for improvement.To learn more about business practices visit:https://brainly.com/question/6459332
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you go to an all-you-can-eat buffet. once you pay the price to enter the buffet, you can fill your plate as much as you want at no additional cost. if you maximize utility, the marginal utility of the last bite that you eat will be: a less than zero. b equal to zero. c equal to the price of the buffet. d as high as possible. e dependent on how much you like the buffet.
The final mouthful you consume will have a marginal utility of ZERO. Marginal utility, which is measured in utils, is the additional pleasure obtained after consuming one additional unit of an item or service.
The Right Response is Option bAlfred Marshall's lawTotal utility is maximised when marginal utility is zero. When the total utility begins to drop, the marginal utility goes negative.According to Alfred Marshall's law of decreasing marginal utility, the utility obtained must decrease as more and more units of an item are used.The marginal utility obtained from the most recent bite would be 0 if utility is maximised in the case.To Learn more about marginal utility Click the links.
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Emergency funds are important because they ____________. a. earn interest, making it unnecessary to work. b. are available when they are most needed, such as after a job loss. c. make it possible to pay monthly bills. d. keep money separated so that the balance will not change. please select the best answer from the choices provided a b c d
Answer: b. are available when they are most needed, such as after a job loss.
Explanation: it makes the most sense
Answer:
B) are available when they are most needed, such as after a job loss.
Explanation:
An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on treasury securities, everything else held constant.
The answers are - increase and reduce.
Corporate bonds deliver higher yields than some different fixed-income investment options, but for a price in terms of counted risk. Most corporate bonds are debentures, indicating they are not assured by a collateral. Investors in such bonds must handle not only interest rate risk but also credit risk, the possibility that the corporate issuer will default on its obligation.
Therefore, it is important that corporate bond investors know how to assess credit risk and its potential returns. And while increasing interest rate activities can decrease the value of your bond investment, a default can practically destroy it. Holders of defaulted bonds can recover some of their principal, but it's often pennies on the dollar. The preliminary risks related to corporate bonds are credit risk, interest rate risk, and market risk. In addition, some corporate bonds may be called for redemption by the issuer, and their principal payment may be made before the maturity date.
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An increase in the riskiness of corporate bonds will increase the yield on corporate bonds and reduce the yield on treasury securities, everything else held constant.
Compared to certain other fixed-income investment options, corporate bonds offer higher returns, but at a cost in terms of added risk. The majority of corporate bonds are debentures, which means they are not guaranteed by any kind of asset. Investors in these bonds must manage both interest rate risk and credit risk, or the chance that the business issuer will stop making payments on the bond.
Investors in corporate bonds should therefore understand how to evaluate credit risk and its possible rewards. Additionally, while actions to raise interest rates may reduce the value of your bond investment, a default may almost wipe it out. Bondholders can recoup part of their capital, although it's typically only pennies on the dollar. Credit risk, interest rate risk, and market risk are the initial concerns associated with corporate bonds. Additionally, the issuer may call for the redemption of some corporate bonds, and the principal may be paid before the bonds' maturity date.
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a 10% increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese. from this information, we can assume:
We can assume that macaroni is an inferior good and its price elasticity of demand is infinite.
What is the price elasticity?Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
The percentage change in price of the good would be 0 since the price of macaroni did not change.
15% / 0 = ∞
A good is an inferior good if an increase in the income of the consumer leads to a decrease in the demand for the good. If income decreases, the demand for the good would increase.
Here are the options:
macaroni is a normal good and price elasticity of demand is greater than 1. macaroni is an inferior good and price elasticity of supply is equal to zero
macaroni is an inferior good and price elasticity of supply is infinite. macaroni is an inferior good and price elasticity of demand is less than 1
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