Answer:
procurement
Explanation:
Procurement is the process of obtaining the goods or services for the business motive. It is to be associated at the time when the company required to solicited the services or purchased the goods on the wider scale
So as per the given situation, the procurement is the component of the supply chain that could be considered for the purchasing process
So this is the answer but the same is not provided in the given options
Which type of fiscal policy takes longer to affect the economy: demand-side or supply-side?
A.)supply-side
B.)demand-side and supply-side policies take an equal amount of time
C.)demand-side
Answer:
A.) supply-side
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
A supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.
This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.
Hence, a supply-side fiscal policy is typically designed to create an outward shift in the production possibilities curve (PPC) and shift the aggregate supply (AS) curve to the left.
Generally, a supply-side fiscal policy takes a longer period of time to affect the economy of a country.
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold every month at a price of $6 per case. After the tax, 39 million cases of cola are sold every month; consumers pay $7 per case (including the tax), and producers receive $3 per case.
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.
A. True
B. False
Answer:
Tax on a case of cola is $4 per case.
The burden that falls on consumers is $1 per case.
The burden that falls on producers is $3 per case
False. This is due to the fact that producers already carry a greater share of the tax burden.
Explanation:
Tax on a case of cola = Amount that consumers pay after the tax has been charged - Amount producers receive = $7 - $3 = $4 per case
Burden on consumers = Amount consumers pay after the tax has been levied - Amount consumers pay before tax was levied = $7 - $5 = $1 per case
Burden on producers = Tax on a case of cola - Burden on consumers = $4 - $1 = $3 per case
False. This is due to the fact that producers already carry a greater share of the tax burden.
ình hình tài sản của Cty SAO KIM, số 7, Lê VănTám , phường 9, Quận 10 tính đến ngày 31/12/2020 như sau :
Đvt: triệu đồng.
Tiền mặt 1,000
Tiền gửi ngân hàng 79,000
Phải trả người bán 110,000
1399Nguyên vật liệu 225,000
Vay ngắn hạn ngân hàng 120,000
Công cụ dụng cụ 5,000
Nguồn vốn kinh doanh 965,000
Lãi chưa phân phối 203,500
Xe tải 100,000
Dây chuyền công nghệ 500,000
Máy móc thiết bị 389,000
Phải thu khách hàng 100,000
Phải trả người lao động X
Yêu cầu:
1. Tìm X.
Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his self-employment tax). He uses a defined contribution Keogh plan. What is the maximum amount Harvey can contribute to his retirement plan in 2020
Answer: $24,000
Explanation:
Under the defined contribution Keogh plan, Harvey is allowed to contribute the lesser amount of either $57,000 or 20% of his self-employed income from business.
20% of income is;
= 20% * 120,000
= $24,000
This is less than the maximum of $57,000 and so is the amount that Harvey can contribute to his retirement plan.
The accounting records of Jamaican Importers, Inc., at January 1, 2021, included the following: Assets: Investment in IBM common shares $ 1,345,000 Less: Fair value adjustment (145,000) $ 1,200,000 No changes occurred during 2021 in the investment portfolio.
Prepare appropriate adjusting entry(s) at December 31, 2021, assuming the fair value of the IBM common shares was:_____.
1, $ 1,175,000
2, $ 1,275,000
3, $ 1,375,00
Answer: See explanation
Explanation:
The appropriate adjusting entry(s) at December 31, 2021, given the fair value of the IBM common shares are represented below:
1. 31, December 2021
Dr Unrealized holding gain or loss - NI $25,000
Cr To Fair value adjustment $25,000
(To record adjustment to fair value)
2. 31, December 2021
Dr Fair value adjustment $75,000
Cr To Unrealized holding gain or loss - NI $75,000
(To record adjustment to fair value)
3. 31, December 2021
Dr Fair value adjustment $175,000
Cr To Unrealized holding gain or loss - NI $175,000
(To record adjustment to fair value)
A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume an annual interest rate of 10%. Use engineering economics principals a.) What is the payback period in years
Answer:
5.24 YEARS
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
5240 / 1000 = 5.24 YEARS
You are closing the accounts you used to bill the project costs, but you still have some lingering expenses. Which best practice should you follow?
Answer:
Close all accounts except for the one related to the follow-up activities until the remanding expenses are complete.
Explanation: You never what to close out an account when the project has not been completed. If you still have remanding expenses the project is not complete.
unclearninglab.litmos.com
ng & Certifications
2022 Ethics and Compliance Test
2022 Ethics and Compliance Test
W PREVIOUS
X EXIT
Janine, currently enrolled in a 3-star plan,
discovers there is 5-star plan available where
she lives. She asks her agent, Josh, to enroll
her in the 5-star plan. Josh can advise Janine
of each of the following except:
Josh should tell Janine that she can only change her current plan to a 5-
star plan during the Annual Election Period.
Josh should tell Janine that she can only use the 5-Star SEP once per
calendar year.
Josh should tell Janine that she can change her current plan to a 5-star
Answer:
Janine and Josh
Josh can advise Janine of each of the following except:
Josh should tell Janine that she can only change her current plan to a 5-
star plan during the Annual Election Period.
Explanation:
The Special Election Period (SEP) for the 5-star Medicare Plan lasts one week, that is, between Nov. 30 and Dec. 8. However, there is an Annual Enrollment Period (AEP) that lasts from October 15th to December 7th. During the annual enrollment period, any plan holder can change her Medicare plan, depending on its availability in her area.
When a company records depreciation it debits:_____.
A. Depreciation Expense and credits a contra-asset account.
B. Depreciation Expense and credits Cash.
C. a long-lived tangible asset account and credits Depreciation Expense.
D. a liability account and credits Depreciation Expense.
Answer: A. Depreciation Expense and credits a contra-asset account.
Explanation:
Depreciation is an expense which means that when it is incurred, it will be debited because expenses are debited to show that they have increased.
Depreciation reduces the value of an asset so the asset needs to be credited which is what is done when an asset reduces. The full entry would therefore involved a debit to the Depreciation account and a credit to the asset account that is being depreciated.
When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income. True or False 16
Answer: False
Explanation:
The primary reason for the Statement of Cashflows is to see how the company spends and receives its cash so that it can get a better view of just how much actual cash the company has.
This means that the method of preparing the cashflow statement could either be direct or indirect and this would not affect the fact that only items that have actual cash flows will be recorded.
Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $41,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of $615,000.
As a result, Jason reports gross income of:______.
Answer: $0
Explanation:
Life insurance proceeds are generally considered to be tax exempt in order to ease the burden on the bereaved which means that Jason does not have to report any gross income from receiving this insurance proceeds.
If Jason does not collect all the proceeds at once however, and leaves some or all of it with the insurance company to accumulate interest, he will have to pay taxes on that interest.
Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period
Answer:
$406,000
Explanation:
Calculation to determine the actual total direct labor cost for the current period
Using this formula
Actual direct labor cost=Standard direct labor cost + unfavorable rate variance - favorable efficiency variance
Let plug in the formula
Actual direct labor cost=$400,000 + $10,000 - $4,000
Actual direct labor cost= $406,000
Therefore the actual total direct labor cost for the current period is $406,000
The following information pertains to Nova Co.'s cost-volume-profit relationships:
Breakeven point in units sold ………………………….. 2,000
Variable expenses per unit ……………………………… 500
Total fixed expenses …………………………………… $150,000
How much will be contributed to net operating income by the 2,001st unit sold?
A. $ 65
B. $ 75
C. $150
D. $ 0
Answer: $150
Explanation:
Breakeven point in units sold = 2,000
Variable expenses per unit = 500
Total fixed expenses = $150,000
The break even in units is calculated as:
= Fixed Cost / Contribution per Unit
Therefore,
1000 = 150000/ Contribution per unit
Contribution per Unit will now be:
= 150000 / 1000
= 150
It should be noted that after the break even point, every unit sold will lead to an increase in the contribution per unit to the net operating income. Therefore, the amount that'll be contributed to net operating income by the 2,001st unit sold is $150.
The year 14 interest of a bond is the face line of the bond
Answer:
yes you are correct okay with you
Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.
Answer:
A. $47,800
Explanation:
Calculation to determine the net cash outflow for the new machine after considering the sale of the old machine
First step
Loss on sale of old machine = 18000 - 32,000
Loss on sale of old machine = ($14,000)
Second step
Tax savings from loss on sale=14,000 x 30%
Tax savings from loss on sale = $4200
Third step
Net benefit from sale of old machine = Sales proceeds + tax on loss of sale
Net benefit from sale of old machine= $18,000 + $4200
Net benefit from sale of old machine= $22,200
Now let determine the Net cash outflow for new machine
Net cash outflow for new machine = Cost of new machine – Net benefit
Net cash outflow for new machine= $70,000 – $22,200
Net cash outflow for new machine= $47,800
Therefore the net cash outflow for the new machine after considering the sale of the old machine is $47,800
Oriole Company sold goods with a total selling price of $809,600 during the year. It purchased goods for $393,200 and had beginning inventory of $68,400. A count of its ending inventory determined that goods on hand was $51,200. What was its cost of goods sold
Answer:
$410,400
Explanation:
Cost of goods sold = Beginning inventory + Purchases - Ending inventory
Cost of goods sold = $68,400 + $393,200 - $51,200
Cost of goods sold = $410,400
So, its amount of cost of goods sold is $410,400.
Storrer Co. identifies the following activities that pertain to manufacturing overhead, for each activity, identify an appropriate cost driver.
Activity Cost Driver
Materials handling Storrer Co. identifies the following activities th Number of Purchase OrdersMachine Hours UsedNumber of SetupsSquare Footage OccupiedNumber of RequisitionsDirect Labor HoursNumber of InspectionsNumber of Parts or AssembliesNumber of Employees
Machine setups Storrer Co. identifies the following activities th Number of Purchase OrdersNumber of EmployeesNumber of SetupsNumber of InspectionsDirect Labor HoursNumber of Parts or AssembliesSquare Footage OccupiedNumber of RequisitionsMachine Hours Used
Factory machine maintenance Storrer Co. identifies the following activities th Direct Labor HoursNumber of InspectionsNumber of EmployeesNumber of RequisitionsNumber of SetupsNumber of Purchase OrdersNumber of Parts or AssembliesSquare Footage OccupiedMachine Hours Used
Factory supervision Storrer Co. identifies the following activities th Machine Hours UsedNumber of InspectionsNumber of EmployeesNumber of Parts or AssembliesNumber of Purchase OrdersNumber of RequisitionsSquare Footage OccupiedNumber of SetupsDirect Labor Hours
Quality control Storrer Co. identifies the following activities th Number of EmployeesDirect Labor HoursNumber of InspectionsSquare Footage OccupiedNumber of RequisitionsNumber of Purchase OrdersNumber of SetupsNumber of Parts or AssembliesMachine Hours Used
Answer:
Activity
1. Material Handling
2. Machine Setups
3. Factory Machine Maintenance
4. Factory Supervision
5. Quality Control
Cost Driver
1. Number of Requisitions
2. Number of Setups
3. Machine Hours Used
4. Number of Employees
5. Number of Inspections
Explanation:
The following are the activities with their cost drivers:
Activity
1. Material Handling
2. Machine Setups
3. Factory Machine Maintenance
4. Factory Supervision
5. Quality Control
Cost Driver
1. Number of Requisitions
2. Number of Setups
3. Machine Hours Used
4. Number of Employees
5. Number of Inspections
Your firm is considering a project with a discount rate of 9%. If you start the projecttoday, your firm will incur an initial cost of $490 and will receive cash inflows of$365 per year for 3 years. If you instead wait one year to start the project, the initial cost will rise to $530 and the cash flows will increase to $405 a year for the following 3 years. Would your firm be better off starting the project now or waiting to start the project in a year? Explain clearly including an estimate of the value of the option to wait.
Answer:
If the company start the project today then NPV of the project,
Year Cash Flow PV of Cash flow
0 -490 -490
1 365 365/1.09= 334.86
2 365 365/1.09^2 = 307.21
3 365 365/1.09^3= 281.85
NPV = 433.92
NPV of Project0= $ 433.92
If a company start a project after one year,
Year Cash Flow PV of Cash flow
0 0 0
1 -530 -530/1.09= -486.24
2 405 405/1.09^2 =340.88
3 405 405/1.09^3 = 312.73
4 405 405/1.09^4 = 286.91
NPV = 454.28
NPV of Project1= $ 454.28
Here for project start after one year has more Net Present Value of cash flow compared to which start now.
So, Starting a project after one year is more profitable.
A company buys equipment for $48,000, expects to use it for ten years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: A. $4,200. B. $8,400. C. $4,800. D. $9,600.
Answer:
A $4,200
Explanation:
Given the following information, a company buys equipment for $48,000 expects to use it for ten years, and then sell it for $6,000
We need to use the formula below
Annual depreciation = (Original cost - Salvage value) / Estimated life(years)
Annual depreciation = ($48,000 - $6,000) / 10
Annual depreciation = $4,200
A logical way to allocate building maintenance costs to departments would be based on: Select one: A. Machine hours B. Number of employees C. Labor hours D. Square feet of floor space
Answer: D. Square feet of floor space
Explanation:
The building maintenance cost should be based on a measure that takes into account the size of the building so that the maintenance cost can be apportioned based on how much space needs to be maintained.
The best measure to do so would therefore be the square feet of floor space. If maintenance cost is assigned per square feet, it would take into account how much expenses are being incurred to maintain the entire size of the building.
Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.
Answer:
the rate of return on total assets is 63.09%
Explanation:
The calculation of the rate of return on total assets is shown below:
Return on total Asset is
= {(Net Income + Interest Expense) ÷ Average Total assets} × 100
= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100
= $206,000 ÷ $326,500 × 100
= 63.09%
Hence, the rate of return on total assets is 63.09%
Waterway Industries can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $4 Coffee Cakes 0.3 $5 The company has oven capacity of 1500 hours. How much will contribution margin be if it produces only the most profitable product
Answer:
$30,000
Explanation:
Muffins Coffee Cakes
Contribution Per Unit (A) $4 $5
Oven Hours Required (B) 0.2 0.3
Contribution Per Hour $20 $16.67
Rank 1 2
Total Hours Available 1,500
Hours Required for 1 Unit of Muffin 0.2
Total Muffins Production with 1500 Hours (1,500/.2) 7,500
Contribution Per Unit $4
Total Contribution (7,500*$4) $30,000
All of the following statements are true EXCEPT:_________.
A. the demand for gasoline is more elastic the longer the time elapsed.
B. the smaller the proportion of income spent on a good, the more inelastic demand will be.
C. the demand for food is less elastic than the demand for a Hawaiian vacation.
D. the demand for Nike running shoes is less elastic than the demand for shoes.
E. the demand for clothing is less elastic than the demand for blue jeans.
Answer:
D. the demand for Nike running shoes is less elastic than the demand for shoes.
Explanation:
In this the substitutes would be more for the particular brand rather than the normal running shoes. Since the demand of running shoes might be less elastic as compared to the demand of nike running shows because the consumer shifted from the nike to other brand that are popular. Plus, the elasticity of demand for running shoes is considered to be inelastic as there is many subsitutes
So, the option d is correct
The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or
Answer:
1. NSF check
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
2. EFT Deposit
- Appears on the Bank Statement as: Crediit Memo
- Increases the Balance of the Company's Bank Account
3. Service charge
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
4. Bank correction of an error from recording a $300 deposit as $30
- Appears on the Bank Statement as: Debit Memo
- Increases the Balance of the Company's Bank Account
You plan to deposit $1,800 per year for 5 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
Required:
a. What amount will be in your account at the end of 6 years?
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire?
Answer:
1-a. The amount that will be in your account at the end of 6 years is $11,643.14.
1-b. The amount that will be in your account at the end of 6 years is $11,992.43.
2-a. The amount you need in your retirement account the day you retire is $590,938.17.
2-b. The amount you need in your retirement account the day you retire is $679,578.89.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
1. You plan to deposit $1,800 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
2. You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $90,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually.
a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
The explanation of the answers is now provided as follows:
1-a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since you plan to make your first deposit one year from today, this can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = D * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of periods = 6
Substituting the values into equation (1), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) = $11,643.14
Therefore, the amount that will be in your account at the end of 6 years is $11,643.14.
1-b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that your deposits will begin today, this can be calculated using the formula for calculating the Future Value (FV) of an Annuity Due as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of years = 6
Substituting the values into equation (2), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) * (1 + 0.03) = $11,992.43
Therefore, the amount that will be in your account at the end of 6 years is $11,992.43.
2-a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since your first withdrawal will be made one year after you retire, this can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (3)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (3), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) = $590,938.17
Therefore, the amount you need in your retirement account the day you retire is $590,938.17.
2-b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that that your first withdrawal will be made the day you retire, this can be determined using the formula for calculating the present value of an annuity due as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (4)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (4), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) (1 + 0.15) = $679,578.89
Therefore, the amount you need in your retirement account the day you retire is $679,578.89.
Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all. Capital turnover Direct fixed expenses Flexible budget variance Key performance indictors (KPIs) Profit center Sales margin Common fixed expenses Favorable variance Goal congruence Management by exception Return on investment (ROI) Unfavorable variance Cost center Flexible budget Investment center Master budget variance Revenue center Volume variance
Solution :
a). Flexible budget
A flexible budget is a budget that is prepared for the different volume level which was originally anticipated.
b). Flexible budget variance
It is the different between the flexible budget and the actual results.
c). Return on Investment
It is used to evaluate the performance of the investment centers. It is calculated by dividing operating income by the investment.
d). Favorable variance
The company has the favorable variance when the actual values are more than the budgeted values.
Suppose I want to open my own restaurant. Currently I am working asa Financial Analyst at a top bank earning $175,000 a year, which I willhave to quit to open a restaurant. I am also going to invest $100,000of my savings which were earning an average annual rate of 6%.Whatis my opportunity cost(implicit cost) of opening the restaurant
Answer: $181000
Explanation:
Amount earned in a bank = $175000
Money invested = $100000
Interest Rate = 6%
Interest earned will be:
= 6% × $100000
= $6000
Therefore, the total earnings when the individual is working in the bank will be:
= $175000 + $6000
= $181000
Therefore, the pportunity cost of opening the restaurant will be the income that's foregone when working in the bank which is $181000.
Place a checkmark next to each argument that supports keeping the Federal Reserve.
1- The Fed favors the interests of the wealthy.
2- The Fed helps prevent bank failures, like those that occurred prior to and during the Great Depression.
3- The Fed helps stabilize the stock markets, particularly during a financial crisis or national emergency.
4- The Fed can offset negative financial impacts from foreign countries.
5- The Fed plays a vital role in maintaining healthy financial and banking systems in the U.S.
6- The Fed is essentially a currency monopoly.
Answer:
2- The Fed helps prevent bank failures, like those that occurred prior to and during the Great Depression.
3- The Fed helps stabilize the stock markets, particularly during a financial crisis or national emergency.
4- The Fed can offset negative financial impacts from foreign countries.
5- The Fed plays a vital role in maintaining healthy financial and banking systems in the U.S.
Explanation:
The Federal Reserve is a group of federal banks that regulate other banks, maintain monetary policy of a nation, provides banking services and also tries to ensure financial stability.
Therefore, the above selections are arguments that supports keeping the Federal Reserve.
In the small country of Economerica, there are 6 thousand people employed, 1 thousand people unemployed, and 3 thousand people of working age not included in the labor force. One thousand students graduate from the university and seek jobs in the country, but not one graduate is able to find one. Half of the new graduates believe there is no chance of finding a job and return home to live with their parents. Ceteris Paribus, what would the new unemployment rate be in Economerica?
A. 14.29%
B. 20.00%
C. 25.00%
D. 45.45%
Answer: B. 20.00%
Explanation:
Unemployment rate does not include those who have given up on finding a job.
Unemployment rate = Unemployed people / Labor force
Unemployed people:
= Original unemployed + half the new graduates
= 1,000 + (1,000 / 2)
= 1,500 people
Labor force:
= Unemployed + employed people
= 1,500 + 6,000
= 7,500 people
Unemployment rate:
= 1,500 / 7,500
= 20%
Current liabilities could include all of the following except: A. any part of long-term debt due during the current period. B. a notes payable due in 9 months. C. a bank loan due in 18 months. D. an accounts payable due in 30 days.
Answer: C. a bank loan due in 18 months.
Explanation:
Current liabilities include all the debt obligations that a company has in the current period.
This means that only debt obligations that mature within a year are to be considered current liabilities.
Bank loans that are due in 18 months are over a year and so have to be considered long-term liabilities not current liabilities.
