Suppose the money supply (as measured by checkable deposits) is currently $700 billion. The required reserve ratio is 25%. Banks hold $175 billion in reserves, so there are no excess reserves.

The Fed wants to increase money supply by $44 billion, to $744 billion. Assume that you can use the simple money multiplier
a) If the Fed wants to increase the money supply through open market operations, it should_ $_ billion worth of U.S. government bonds.
b) If the Fed wants to increase the money supply by adjusting the required reserve ratio, it should_required reserve ratio.

Answers

Answer 1

Final answer:

To increase the money supply by $44 billion with a reserve requirement of 25%, the Fed should buy $11 billion in government bonds using open market operations. The money multiplier is used to calculate this figure. Adjusting the reserve requirement is another way to alter the money supply, but the specific new ratio isn't provided.

Explanation:

To increase the money supply by $44 billion, we should start by calculating the amount the Federal Reserve needs to purchase in government bonds. This calculation can be made using the simple money multiplier, which is the inverse of the required reserve ratio (RRR). Given the RRR of 25%, the money multiplier is 1 / 0.25 = 4. Therefore, to increase the money supply by $44 billion, the Fed would need to inject $11 billion into the economy since $11 billion × 4 = $44 billion.

For part b, adjusting the required reserve ratio involves decreasing it so that banks will have more funds available to loan out, which increases the money supply through the lending process. The new reserve requirement can't be calculated precisely from the given information, but the Fed would lower the RRR from 25% to a smaller percentage to achieve the desired expansion in the money supply.


Related Questions

The following problem refers to a closed Leontief model. A closed model for an economy identifies government, the profit sector, the nonprofit sector, and households as its industries. Each unit of government output requires 0.3 unit of government input, 0.2 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.3 unit of households input. Each unit of profit sector output requires 0.2 unit of government input, 0.3 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.4 unit of households input. Each unit of nonprofit sector output requires 0.1 unit of government input, 0.1 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.6 unit of households input. Each unit of households output requires 0.05 unit of government input, 0.1 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.75 unit of households input. (a) Write the technology matrix T for this closed model of the economy.

Answers

Answer:

Detailed solution is given in the diagram attached.

Final answer:

In a Leontief model, the technology matrix shows the needed input from all sectors for each unit of output. It is created by putting the input requirement for each industry onto rows and the sectors themselves onto columns.

Explanation:

The technology matrix, T, for this closed Leontief model of an economy, can be created by placing the input requirement of each sector for producing one unit output onto rows, and sectors themselves onto columns. The ordering of the rows and columns in the technology matrix would be Government, Profit, Non-Profit, and Household sectors. Therefore, matrix T can be written as:

T = [ [ 0.3, 0.2, 0.2, 0.3 ], [ 0.2, 0.3, 0.1, 0.4 ], [ 0.1, 0.1, 0.2, 0.6 ], [ 0.05, 0.1, 0.1, 0.75 ] ]

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Is Dropbox profitable as of June 2010? Are you optimistic about its chances? How does your estimation of Dropbox’s current profitableness influence your rating of the venture’s chances?

Answers

Answer: yes and am optimistic about its chances.

Explanation: in the first place this question is incomplete, i saw the full question online.

Let me say that Dropbox will be profitable as of June 2010 and I’m optimistic about its chances because Houston had invented a good merchandise and selling scheme. he was able to concentrate on the growth of Dropbox and utilize the turning market to his advantage. As IDC projected an one-year growing of 28 % for this market to $ 2. 5 billion Dollar in 2014 I assume that this market has a large turning possible and Dropbox will be profitable in the coming old ages due to this growing rate.

Final answer:

Dropbox was not profitable in June 2010, but its future profitability depended on factors like scaling, monetization, and cost control. Optimism about Dropbox's chances would be influenced by a belief in its growth strategy and potential for future profitability.

Explanation:

As of June 2010, Dropbox was not profitable. It had revenue of $46.7 million but incurred a net loss of $5.7 million. The company was still in the early stages of growth and focused on acquiring more users and expanding its product offering.

Being unprofitable at that time does not necessarily indicate a lack of potential for future profitability. Dropbox had a strong user base and a unique product that filled a need in the market. The company's profit potential would depend on its ability to scale, monetize its user base, and control costs.

As an investor or analyst, one could be optimistic about Dropbox's chances if they believed that the company had a solid growth strategy and the potential to become profitable in the future. However, it is important to consider various factors beyond just profitability, such as market dynamics, competition, and management team.

You are evaluating the purchase of Cellars, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12% for the next three years. You plan to hold the stock for three years and then sell it. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Calculate the present value of the expected dividends.
A) $4.91
B) $5.40
C) $9.80
D) $6.80

Answers

Answer:

A) $4.91

Explanation:

The computation of the present value of the expected dividends is shown below:

Particulars                     Dividend   Discount factor   Present value

Dividend in year 1          $2.02        0.851                    $1.72

Dividend in year 2         $2.26        0.724                   $1.64

Dividend in year 3         $2.53         0.616                   $1.56

Present value                                                                $4.91

The value of the dividend is come after considering the growth rate of 12%

Which statement is NOT true about the food industry and their lobbyists' influence on government legislation? They influence favorable legislature for the food manufacturers and producers. That no government agency says to the American people to "eat less". Promotes comsumption of fresh fruits and vegetable and reducing consumption from refined grain products. Encourages the government to pass favorable legislation for the food industry.

Answers

Answer:

The answer is C.

Explanation:

Just as almost every industry, American Food Industry also has lobbyists who work to influence the politicians and legislators and control the legislations in a way that is profitable for the industry.

Among the given options, A and D are true about the food industry and their lobbyists' influence, they do influence favorable legislature for the industry.

B is also true because telling people to eat less is not profitable for the food industry.

Option C, promoting consumption of fresh fruits and vegetables is not a true statement regarding the food industry and their lobbyists.

I hope this answer helps.

For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand does not apply.

Answers

Answer:

The correct answer is letter "B": demand tends to be inelastic.

Explanation:

Inelasticity is a characteristic that goods and services have by which their demand does not change in front of fluctuations in price. Consumer staples are considered inelastic goods since people need them to cover basic needs.

Inelasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for that good or service is inelastic.

True or False: Beta testing is the act of implementing a new idea, system or product on a large scale, controlled environment within the entire organization.

Answers

Answer: True.

Explanation: Beta testing is the act of implementing a new idea, system, or product with a select group of people or processes in as controlled an environment as possible. ... The purpose of beta testing is to reduce the risks and costs inherent in launching an unproven product or system to a widespread audience.

The correct answer for this is : False

Beta testing is an opportunity for real users to use a product in a production environment to uncover any bugs or issues before a general release. Beta testing is the final round of testing before releasing a product to a wide audience.

What is Beta Testing?

Beta testing is a type of user acceptance testing where the product team gives a nearly finished product to a group of target users to evaluate product performance in the real world.

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As discussed in the textbook, which of the following is true in China when an outsider allegedly commits or actually commits fraud in the course of business dealings with Chinese firms?

Answers

Answer:

Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.

Explanation:

Chinese laws and regulations governing commercial conduct generally pair prohibitions of specific practices with prescriptions of applicable administrative penalties. Common penalties to any outsider or outsider companies that engages in fraud in china include warnings, confiscation of illegal monetary gains, heavy fines, the temporary suspension of business and ability to conduct business with any Chinese firm, or permanent revocation of the company's business license to conduct business with any Chinese firm. Some penalties are special to particular sectors or professions, such as the suspension or revocation of individual licences to trade securities to conduct business transactions with any Chinese firm.

An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.

1. A $195 refund to a customer for faulty merchandise was debited to Sales Revenue $195 and credited to Cash $195.
2. A $180 credit purchase of supplies was debited to Inventory $180 and credited to Cash $180.
3. A $215 sales discount was debited to Sales Revenue.
4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-Out $200 and credited to Cash $200.

Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.

Answers

Answer:

The Journal entries are as follows:

(i) Sales Returns and allowance A/c Dr. $195

                 To sales revenue                            $195

(To record the correct entry for faulty merchandise)

(ii) Supplies A/c Dr. $180

   Cash A/c        Dr. $180

         To Account Payable A/c     $180

          To Merchandise Inventory A/c  $180

(To record the correct entry for the purchase of supplies)

(iii) Sales Discount A/c Dr. $215

           To Sales Revenue         $215

(To record the sales discount)

(iv) Inventory A/c Dr. $20

    Cash A/c         Dr. $180

        To Freight -Out      $200

(To record the freight on merchandise purchases)

Suppliers can gain power from a number of sources in the buyer​ / supplier relationship. When a buyer has access to​ knowledge, information and skills desired by the​ supplier, this is called​ a(n) ________ source of power.

Answers

Answer:

This is called an expert source of power

Explanation:

An expert power is a perception or belief that an individual has some or possesses relevant expertise or special knowledge in a particular area that others do not have. In a business setting, when a buyer has access to​ knowledge, information and skills desired by the​ supplier, it is known as an expert source of power.

Which of the following activities that Private Sector Companies Can Do support the NIPP 2013 Core Tenet category, "Innovate in managing risk"? A. Identify shared goals, define success and document effective practices. B. Participate in training and exercises; Attend webinars, conference calls, cross-sector events and listening sessions. C. Adopt the Cybersecurity Framework. D. Establish relationships with key local partners including emergency management

Answers

Answer:

A. Identify shared goals, define success and document effective practices.

Explanation:

The NIPP has established some strategies that must be followed by government sectors and private organizations, in partnership, for the risk management innovation to occur. One of the factors established by NIPP to achieve this goal is the identification of shared goals, the definition of success and the documentation of effective practices.

This information must be shared and cooperated by private companies and government sectors in order for the region's economic success to be stimulated and to suffer less problems related to poorly planned management.

To make your business messages more effective, revise for vigor and directness. You can strengthen your writing by unburying verbs, controlling exuberance, and choosing precise words. Which of the sentences contain buried verbs? Check all that apply.
a.The entire team prepared the proposal Paul submitted on Wednesday.
b.Please analyze last month's sales trends.
d.Give consideration to the economic climate.
c.The new filing system will increase efficiency.

Answers

Answer:

The correct answer is letter "D": Give consideration to the economic climate.

Explanation:

Buried verbs express actions using verb redundantly. Most of the time they are composed of two verbs unnecessarily jointed when only one of them could give meaning to the segment. The two words jointed become a noun. Buried verbs make sentences wordy and do not help in improving the clarity of the message. Thus, the sentence:

Give consideration to the economic climate.

Should only be:

Consider the economic climate.

A sample of 51 elements is selected to estimate a 95% confidence interval for the variance of the population. The chi-square values to be used for this interval estimation are

a. -1.96 and 1.96
b. 32.357 and 71.420
c, 34.764 and 67.505
d. 12.8786 and 46.9630

Answers

Answer:

Correct option: (b) 32.357 and 71.420

Explanation:

The confidence interval for population variance σ² is:

[tex]\frac{(n-1)s^{2}}{\chi^{2}_{\alpha/2, (n-1) }}\leq \sigma^{2}\leq \frac{(n-1)s^{2}}{\chi^{2}_{(1-\alpha/2), (n-1) }}[/tex]

Given:

[tex]n=51\\\alpha =1-0.95=0.05[/tex]

Compute the critical values of chi-square as follows:

[tex]\chi^{2}_{\alpha/2, (n-1)}=\chi^{2}_{0.025,50}=71.42[/tex]

[tex]\chi^{2}_{(1-\alpha/2), (n-1)}=\chi^{2}_{0.975,50}=32.36[/tex]

Use the chi-square table for the critical value.

Thus, the critical values are 32.36 and 71.42.

Edward leaves an organization for three years to fulfill military duties. Which observation is true of his employer's obligation to reemploy Edward under the Uniformed Services Employment and Reemployment Rights Act?


A) The employer is not obligated to reemploy Edward.


B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.


C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.


D) The employer must implement an early retirement incentive program for Edward.


E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.

Answers

Answer:

The corrwct option is B

Explanation:

The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service

China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $22,000 and $12,000 (original cost of $45,000 less accumulated depreciation of $33,000), respectively. To equalize market values of the exchanged assets, China Inn paid $9,000 in cash to Midwest Chicken. At what amount did China Inn record the delivery truck? How much gain or loss did China Inn recognize on the exchange?

Answers

Answer:

$31,000; $10,000

Explanation:

Given that,

Fair value of the equipment = $22,000

Book value of the equipment = $12,000

Original cost of the equipment = $45,000

Accumulated depreciation = $33,000

Fair value of delivery truck:

= Cash paid to Midwest Chicken for delivery truck apart from equipment + Fair value of equipment sold in exchange

= $9,000 + $22,000

= $31,000

Gain recognize on exchange:

= Fair value of equipment given in exchange - Book value of equipment

= $22,000 - $12,000

= $10,000

Final answer:

China Inn recorded the delivery truck at $31,000. It also recognized a gain of $19,000 from the exchange of the assets with Midwest Chicken.

Explanation:

China Inn exchanged its equipment worth $22,000 (fair value) and gave an additional $9,000 in cash to Midwest Chicken for a delivery truck. Hence the cost of the truck for China Inn is the total value it gave up, which is $31,000 ($22,000 + $9,000). Therefore, China Inn recorded the delivery truck at $31,000 in its books.

Regarding the gain or loss on this exchange, we need to consider the book value of the equipment given up by China Inn which was $12,000. When this is subtracted from the fair value of the truck received, we get a difference of $19,000 ($31,000 - $12,000). This indicates that China Inn recognized a gain of $19,000 on this exchange of assets.

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A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%.

a. Calculate the total additional sales revenue needed to support the desired net income after tax.
b. Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.

Answers

Answer:

Explanation:

Answer:

A) Total Additional Sales Revenue =

B) Total Sales Revenue =

Explanation:

Requirement A

We know, according to the break-even formula, Target Profit = Target Sales - Variable expense - Fixed Cost - Tax

(according to the net income after tax)

As we need to find target sales, we do not have the variable expense and as the tax is based on the target profit, the new equation is -

Target Profit = (Sales - Variable expense - Fixed Expense) (1 - Tax Rate)

Target Profit = (Sales - Sales × 44% - $188,000) × (1 - 0.28)

$50,400 = (Sales - 0.44 Sales - $188,000) × 0.72

or, Sales - 0.44 Sales - $188,000 = $50,400 ÷ 0.72

or, Sales - 0.44 Sales = $70,000 + $188,000

or, 0.56 Sales = $258,000

Sales = $258,000 ÷ 0.56

Sales = $460,714 (Approx)

Therefore, the company does not need to sell more to cover the tax rate. The sale of the company will decrease by $1,286.

Req. B

The company's total sales revenue will be $460,714 to cover fixed costs, variable costs, and net income after tax.

It can be showed under the following calculation

Sales $460,714

Less: Variable expense (44% of sales) $(202,714)

Contribution Margin $258,000

Less: Fixed Expense $(188,000)

Net Income before tax $70,000

Less:Tax (70,000*28%) $(19,600)

Net income after tax = $50,400

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.

Answers

Answer:

Kindly refer to the attached table for breakdown of answers

Explanation:

FIFO is a costing method that assigns costs to production based on a First in First out basis. Meaning the oldest stocks are transferred to production before the earlier purchased stock

LIFO is a costing method which assigns costs to production on the newness of the stock item, that is Last in First out. The latests stock is always the first to be transferred to production

Weighted Average attempts to find a mix between FIFO & LIFO by employing a uniform valuation based on total value of stock divided by the Quantity of stock available at every point in time.

Cost of Goods sold is the relative cost associated with the sales volume based on the cost method adopted of the 3 listed above

And Closing inventory is the valuation of the stock left over at year end based on the Costing method earlier employed.

Answer:

FIFO

Cost of Goods Sold = $17640

Inventory = $12960

LIFO

Cost of Goods Sold = $19160

Inventory = $11440

Weighted Average

Cost of Goods Sold = $18360

Inventory = $12240

Explanation:

FIFO

FIFO stands for First In First Out, meaning that Inventory bought in first should be the first to be sold

Cost of Goods Sold = (100×60)+(150×68)+(20×72)

Inventory = 180 ×72

LIFO

LIFO stands for Last In First Out, meaning that the recent inventory is sold first

Cost of Goods Sold = (200×72)+(70×68)

Inventory = (80×68)+(100×60)

Weighted Average

A new unit cost of inventory is calculated on each purchase using the average

Cost of Goods Sold = (270×68)

Inventory = (180×68)

A state tobacco sales tax causes the demand curve for a particular brand of cigars to shift from D1 to D2. The tax is assessed at the point of sale as a tax on buyers. Use the area tool to draw the three-cornered area representing the producer surplus after the tax. To refer to the graphing tutorial for this question type, please click

Answers

Answer:

Demand curve shifts to the left due to sales tax. Producer surplus will decrease. Please see attached graph

Explanation:

The sales tax on the cigar caused the Demand curve to shift from D1 to D2 (as shown on the graph). A sales tax will cause the price of the cigar to rise (P1 to P2 on the graph); and ultimately a decrease in quantity demanded will occur (Q1 to Q2 on the graph). This, however, increases revenue collected by the government (B on the graph).

The producer surplus is shown by the shaded area (labelled A on the graph). “Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market” (Chappelow, 2019). Producer surplus will decrease as some of it goes to the government.  

Final answer:

A state tobacco sales tax shifts the demand curve from D1 to D2, decreasing the demand for cigars. This decrease in demand, combined with the tax being assessed at the point of sale, reduces the producer surplus, evidenced by a smaller area above the supply curve and below the new price level.

Explanation:

In normal circumstances, the producer surplus is the difference between the actual price a producer receives and the minimum amount they would be willing to accept, depicted as the area above the supply curve and below the price level. However, when a tobacco sales tax is introduced, this decreases the demand for cigars and shifts the demand curve from D1 to D2. The amount the producers receive for each unit sold decreases, as the tax is applied at the point of sale. Consequently, producer surplus diminishes. This can be graphically represented by a smaller area above the supply curve and below the new price level (after the tax).

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Folsom Fashions sells a line of women's dresses. Folsom's performance report for November is shown below. (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.

Actual
Budget
Dresses sold

5,000
6,000

Sales

$235,000
$300,000

Variable costs

($145,000)
($180,000)

Contribution margin

$90,000
$120,000

Fixed costs

($84,000)
($80,000)

Operating income

$6,000
$40,000


1. The effect of the sales quantity variance on the contribution margin for November is:
$30000 U , $18000 U, $20000 U , $15000 U
2. The sales price variance for November is:
$30000 U , $18000 U , $20000 U , $15000 U

Answers

Answer:

(1) $20,000 U

(2) $15,000 U

Explanation:

(1) Effect of the sales quantity variance on the contribution margin for November:

= (Budget dresses sold - Actual dresses sold) × (Budgeted contribution margin ÷ Budgeted dresses sold)

= (6,000 - 5,000) × (120,000 ÷ 6,000)

= $20,000  unfavorable

(2) Sales price variance for November:

= [(Budgeted sales ÷ Budget dresses sold) - (Actual sales ÷ Actual dresses sold)] × Actual dresses sold

= [(300,000 ÷ 6,000) - (235,000 ÷ 5000)] × 5000

= $15,000  unfavorable

Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Thompson paid $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400. Land B was acquired on October 2, 2019, in exchange for 2,200 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2019, Thompson paid

Answers

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero  for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don’t offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?

Answers

Answer:

An organisation has the ability to pay for the service.

Explanation:

In this scenario Go Green recycling company has identified a need by getting information on complex owners that do not provide recycling services to their tenants.

Legislation has also been passed requiring large complex owners to provide recycling services for tenants.

However they did not determine if the organisations have the ability to pay for services being offered.

So they will get mixed reactions when they approach complex owners.

How does a person with strong GRIT Gauge results deal with a high-stress work situation? Group of answer choices By finding someone to blame By keeping a positive attitude By leaving for a better job By asking for more money

Answers

Answer: By keeping a positive attitude.

Explanation: GRIT is the ability to search wide and accomplish whatever it holds to achieve one's capable purpose. However, this personality trait helps the person to keep a positive attitude in dealing with a high-stress work situation and dealing with any modification that may arise during the work. Also, the person can deal with this situation by not concentrating on losses rather looking towards the betterment of tomorrow and having enjoyment while at it.

Partially correct answer iconYour answer is partially correct. This information relates to Windsor Co.
1. On April 5, purchased merchandise from Wildhorse Company for $25,100, terms 2/10, n/30.
2. On April 6, paid freight costs of $530 on merchandise purchased from Wildhorse.
3. On April 7, purchased equipment on account for $32,500.
4. On April 8, returned $3,600 of April 5 merchandise to Wildhorse Company.
5. On April 15, paid the amount due to Wildhorse Company in full.

Prepare the journal entries to record the transactions listed above on Wildhorse Co.’s books. Wildhorse Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answers

1.  Dr Merchandise inventory    25100

                Cr  Accounts payable       25100

        (To record purchase of inventory on account)

2. Dr Merchandise inventory   530

               Cr  Cash                          530

       ( To record freight cost )

3. No entry

4.  Dr Accounts payable   3600

             Cr  Merchandise inventory    3600

       ( To record purchase return)

5.  Dr Accounts payable   ( 25100-3600)  21500

                         Cr  Cash                                        21500

      (To record paid the amount due).

True or False: Increasing the number of stocks in a portfolio reduces market risk.Consider two stock portfolios. Portfolio B consists of 20 different stocks from firms in different industries. Portfolio A consists of 10 different stocks, also from firms in different industries. The return on Portfolio B is likely to be volatile than that of Portfolio A.

Answers

Answer:

The correct answer is False.

Explanation:

A basic principle of investments is the creation of portfolios (or portfolios) for diversification purposes. At any given time, investors simultaneously hold a set of assets that make up their investment portfolio. A basic principle in finance is that an investor should not place all of his resources in a single asset or in a relatively small number of assets, but in a large number of investment instruments. In this way, the possible bad results in certain assets would be offset by the good results of others. Diversification allows the investor to lower the risk of his portfolio without sacrificing returns or, alternatively, increase the return on his portfolio without increasing his risk. Of course, diversification does not guarantee profits under any circumstances, but it does help to dampen the variability of returns on individual assets.

The contrast error is committed when the rates rate people:
a) relative to performers in other organizations rather than performers in their own organization
b) relative to the previous year's performance rating
c) relative to the company's financial performance
d) relative to others instead of against performance standards

Answers

Answer:

d) relative to others instead of against performance standards.

Explanation:

Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.

The person's ratings is affected negatively or positively.

A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.

Which of the following managerial skills do supervisors and other managers rely on when they need to assign tasks and explain job responsibilities, task objectives, and performance expectations?

A. Envisioning change
B. Taking risks for change
C. Clarifying roles
D. Monitoring operations

Answers

Answer:

The correct option is C

Explanation:

Role clarification is designed to help team members and team leader develop clarity about the roles and responsibility of the team.

Susan, a salesperson for a clothing company, always encourages her customers to be candid with her and requests them to be honest about the services they do not find satisfactory. In this scenario, Susan is:

Answers

Answer:

Susan encourages criticism.

Explanation:

In business, critical judgments are necessary for one to be able to improve and meet up to standards. Critical judgements might either be positive or negative responses.

Critics are accepted and significant because the quality of assessments by the critic can make one come up with better ways to achieve goals or meet customers demands. A good critic should have evidences to back up his or her claim. It's not the job of the critic to either be right or wrong but it's his job to convey his or her opinion on certain issues clearly.

Answer:

Is encouraging critical encounters.

Explanation:

Susan by encouraging her customers to give honest feedback on services they do not find satisfactory is encouraging critical encounters.

Customer satisfaction is a critical success factors for a business and when candid opinion of a business's performance with regards to service is received, it gives pointer to critical areas the business can improve to vecome more successful.

Other means of getting customer feedback include the Net Promoter Score and Customer Satisfaction survey.

Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:

JAN $5,000
FEB -$30,000
MAR $20,000
APRIL -$35,000
MAY $25,000
JUNE -$10,000
JULY $25,000
AUG $25,000
SEPT -$30,000
OCT $15,000
NOV $15,000
DEC $25,000

You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month.
1. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
2. Do you believe that the company needs outside financing?
3. What is the minimum line of credit to request from a lender?
Do you think you are a good candidate for the line of credit? Why?

Answers

Answer:

Explanation:

The answer to the above question is given in the attached document.

Answer:

The prepared cash flow and external funding summary are found in the attached.

I believe the company needs external funding in February-June as well as in September.

The company is a good candidate for line of credit as it has positive cash flows with which it could pay back any external financing taken.

The minimum line of credit required is $40,000 as shown by cash flow summary in April.

Explanation:

Find attached for details

Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price each $1,700 Total labor hours 46,672 Wage rate $12 /hour Total materials $60,000 Total energy $4,000 Calculate the productivity in sales revenue/labor expense. (Round your answer to 2 decimal places.) Productivity

Answers

Answer:

3.69

Explanation:

We know,

The productivity in sales revenue/labor expense = [tex]\frac{sales revenue}{labor expense}[/tex]

Given,

Sales revenue = Units sold × Sale price per unit

Sales revenue = 1,217 units × $1,700

Sales revenue = $2,068,900

labor expense = Total labor hours × wage rate per hour

labor expense = 46,672 × $12

labor expense = $560,064

Putting the values into the formula, We can get,

The productivity in sales revenue/labor expense =  [tex]\frac{2,068,900}{560,064}[/tex]

The productivity in sales revenue/labor expense = 3.69

Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)

True or False

Answers

The given statement " Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles " is FALSE

Explanation:

Any amount outside the initial PPF of a country is considered unlikely without participating in international trade. This means that the PPF bundles are the largest quantity of the items that a nation can produce (and thus consume) without exchange provided the capital of an individual country.

Candonia and Sylvania will actually consume specialization outside their own PPFs, by using the comparative advantage of each nation to realize income from the exchange.

In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing. decrease the rate of growth of the price level to keep real growth high.

Answers

Answer: increase the rate of growth of the money supply to restore spending growth.

Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.

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