They accept deposits from savers and make loans to people who need it. They provide various services, such as checking accounts and money market transactions, to facilitate capital exchange between savers and people who need it.
The correct answer is: Commercial banks.
Commercial banks are financial institutions that accept deposits, offer checking account services, make business, personal, and mortgage loans and offer basic financial products such as Certificates of Deposit (CD) or savings accounts to a private individual and small businesses facilitating transactions between them.
Which of the following would you expect to decrease the demand for tennis racquets? A. A decrease in the price of tennis balls which are complements in consumption of tennis B. An increase in the supply of tennis racquets C. An increase in the price of tennis racquets D. None of the above would decrease the demand for tennis racquets
C) An increase in the price of tennis racquets
If tennis racquets become more expensive, the demand for them will decline, and people will try to supply this need with substitutes, for example, lacrosse raquets. The reason for this is that the classical supply and demand model tells us that demand and price are inversely correlated: if the price goes up, demand goes down, and viceversa.
What affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost?
Total remains unchanged at total level.
And are variable at unit level, increase at lower level and decrease as higher level.
At unit cost, are the same, are the cost of producing one unit.
At total variable cost, it will increase along with sales and decrease when the sales are lower.
The unit fixed cost will be variable at unit level. As this amount will be distribute over more or less units.
So an increase of sales, decrease the unit fixed cost
and decrease of sales, increase the unit fixed cost
At total level, the fixed cost are the same for hte relevant range.
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Alpha Industries is considering a project with an initial cost of $7.9 million. The project will produce cash inflows of $1.63 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.58 percent and a cost of equity of 11.25 percent. The debt–equity ratio is .59 and the tax rate is 40 percent. What is the net present value of the project?
For computation of net present value we need to follow some steps which is shown below:-
After tax cost of debt = Pretax cost of debt × (1 - tax rate)
=5.58% × (1 - 0.4)
debt ÷ equity
= Debt - equity ratio
Hence debt = 0.59 equity
Assume the equity be $x
Debt = $0.59x
Total = $1.59x
WACC = Respective costs × Respective weights
= (x ÷ 1.59x × 11.25%) + (0.59x ÷ 1.59x × 3.348)
Present value of annuity = Annuity × (1 - (1 + interest rate)^ - time period] ÷ Rate
=1.63 × [1 - (1.08317811321)^-7]÷ 0.08317811321
= $1.63 × 5.150256501
Net present value = Present value of cash inflows - Present value of cash outflows
= $8,394,918.10 - $7,900,000
The first step in the project control process for measuring and evaluating project performance is to ch13 Select one: a. Determine the project objectives. b. Determine the project deliverables. c. Analyze the project budget. d. Set a baseline plan e. Review the project priority matrix.
The correct answer is (D)
One of the most significant perspectives to be considered in connection is to frame a benchmark plan. Execution estimation and target-setting are essential to the development procedure, however a pattern plan is basic and is considered as an initial step. While numerous private companies can run themselves easily without target-setting, however every organisation must have a plan and a way to execute those plan.
According to the "J curve effect," a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial ____ in the current account balance, followed by a subsequent ____ in the current account balance. a. decrease; decrease b. decrease; increase c. increase; increase d. increase; decrease
In economics, the J-curve impact is frequently used to explain, for example, how a nation's trade balance negatively affects briefly after a depreciation of its exchange rate, then gradually recovers, and eventually exceeds its previous results.
If the currency of a country is appreciated, economists note, there may be a reverse J-curve. For importing nations, the country 's products unexpectedly become more competitive. When other countries will meet the gap at a cheaper profit, the stronger currency would weaken its advantage on exports.
According to the 'J curve effect', a weakening of the U.S. dollar would cause an initial decrease in the current account balance due to the instant effects on import and export prices. However, with time, the balance is likely to increase due to adjustments in export and import volumes. Therefore, the correct response to your question is (b) decrease; increase.
The 'J curve effect' is a theory in international economics that describes the likely effects of a currency devaluation on a country's trade balance. In specific, when the U.S. dollar weakens relative to its trading partners' currencies, it could initially cause a decrease in the current account balance. The reason is that the immediate effect of a weaker dollar is to make foreign imports more expensive and the U.S. exports less valuable, deteriorating the trade balance. However, in the longer term, the trade balance may increase in the current account balance. This is because over time, the cheaper U.S. exports become more appealing to overseas buyers and imports into the U.S. decrease due to their higher price, improving the balance.
So the answer to your question is: a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial decrease in the current account balance, followed by a subsequent increase in the current account balance. Hence, the correct option is (b) decrease; increase.