Answer: I. Accrued interest is added to the buyer's confirmation
II. Accrued interest is added to the seller's confirmation
Explanation:
Accrued interest is the amount of interest incurred on a loan at a particular date which has not been paid out yet. To the lender, it's a form of revenue and to the borrower, it's an expense.
Therefore, an accrued interest is added to the buyer's confirmation and also added to the seller's confirmation.
"An individual buys 100 shares of ABC stock at $35. This person dies when the stock is trading at $60, and leaves the shares to his son. The son sells the stock when it is trading at $55. Which statement is TRUE?"
Complete/Correct Question:
An individual buys 100 shares of ABC stock at $35. This person dies when the stock is trading at $60, and leaves the shares to his son. The son sells the stock when it is trading at $55. Which statement is TRUE?
A. The son's cost basis is the same as the father's
B. The son's cost basis is based upon the market value at the time of the father's death
C. The son's cost basis is the market price of the security at the time that the stock was sold
D. The son's cost basis cannot be determined with the given information
Answer:
B, The son's cost basis is based upon the market value at the time of the father's death.
Explanation:
For tax purposes, securities are usually valued at the current market value at the date of date. This means that estate tax is based upon the value of assets held as at the said time. Any beneficiary of the estate will have the asset at the market value ($60).
For the above question, the son of the dead man will have the securities at the market value at the time of his father's death; $60. Selling at at a market value of $55 is a loss as calculated by the cost basis of the asset.
Cheers.
Agent Jim works on a flat 2% commission. He sells an in-house listing for $120,000 and also earns a $2,000 bonus from the listing client. What is owed Agent Jim?
Answer: $4400
Explanation:
From the question, we are informed that Agent Jim works on a flat 2% commission and that he sells an in-house listing for $120,000 and also earns a $2,000 bonus from the listing client.
The amount owed Agent Jim will be:
= (2% × $120,000) + $2000
= (0.02 × $120,000) + $2000
= $2400 + $2000
= $4400
ssume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is:
Answer:
The supply of money is directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $12 million.
Explanation:
Total Money supply increased in question = $4 million + $12 million
Total Money supply increased in question = $16 million
Multiplier = 1 / Reserve Ratio
Multiplier = 1 / 0.25 = 54
Once the money is deposited, Money supply is increased by $4 Million.
Total money supply to be increased = Deposits * Multiplier
= 4 million * 4
= $16 Million
If you hear in the news that the Federal Reserve conducted open-market sales, then you should expect
Answer: money supply to increase
Explanation:
When the Federal Reserve conducts open-market sales, then you should expect that there will be an increase in the money supply in the economy.
Open market operations is typically used by the government as an expansionary policy in order to have more money in the economy and also for people to buy more goods and services in the economy.
The lower the real exchange rate is (defined as the foreign price of domestic currency), the ______ expensive domestic goods are relative to foreign goods, and the ______ the demand is for net exports.
Answer:
less, greater
Explanation:
Foreign exchange can be defined as the foreign price of a domestic currency.
When the foreign exchange rate is low, it means that the domestic currency has a higher purchasing power and can be said to be strong. This makes domestic goods and services cheaper compared to imported goods. This in turn means that there will be a greater demand for exportation.
Cheers.
"An officer of MNO Corporation wishes to sell stock under Rule 144. MNO has 50,000,000 shares outstanding. The previous weeks' trading volumes are:"
On November 23rd, an officer of MNO Corporation wishes to sell stock under Rule 144. MNO has 50,000,000 shares outstanding. The previous weeks' trading volumes are:
Week Ending Volume
Nov 21 : 500,000 shares
Nov 14 : 525,000 shares
Nov 7 : 485,000 shares
Oct 31 : 450,000 shares
Oct 24 : 400,000 shares
If the Form 144 is filed today, the maximum sale is:
Answer:
500,000 shares
Explanation:
Given that: according to rule 144, which enables the sale of the greater of 1% of the outstanding shares or the weekly average of the preceding 4 weeks trading volume every 90 days.
Then, we have 1% of 50,000,000 shares = 500,000 shares. The last 4 weeks' trading volumes are:
500,000 shares
525,000 shares
485,000 shares
450,000 shares
1,960,000 shares / 4 weeks = 490,000 share average
Therefore, the greater amount is 1% of outstanding shares, which is 500,000 shares.
Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic risk. the reward for bearing risk.
Answer:
Unsystematic risk
Explanation:
The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.
According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.
Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks
Implied contracts can be formed through an employer's representation of ________. fair performance appraisal fair compensation continued employment in writing or through oral statements fair selection process
Answer:
state
Explanation:
Because it better
Implied contracts can be formed through an employer's representation of continued employment in writing or through oral statements. The correct option is c.
What are implied contracts?Implied contracts are legal obligations created by words, actions, or circumstances. Implied contracts are formed in small ways every day.
When we order a meal in a restaurant or reach across a table for a manicure, we don't sign a contract, we might not even exchange words but we are agreeing to receive goods or services in exchange for paying all the same. To prevent someone from getting something for nothing, or, as it's called in legal terms, unjust enrichment, a judge would decide that there existed an implied contract between us and the restaurant or manicurist and order we have to pay up.
In an implied contract, the terms and conditions of the entire agreement are not spelt out, and they are simply implied.
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Which of the following is NOT one of the biggest B2C catalogers? a. The Limited b. Sears c. Williams-Sonoma d. JCPenney
Answer:
The correct option is;
a. The Limited
Explanation:
Business-to-Consumers or B2C is the means by which company products and services are sold directly to the end-users or consumers. B2C companies are those that deal directly with the end users
Sears, has over 400 outlets, Williams-Sonoma, is a publicly listed company that deals on home furniture and kitchen ware products and J. C. Penny is also a listed department store chain having 840 locations o outlets.
"Kodak focused on maintaining market dominance over Polaroid and Fuji but failed to consider Sony, Nikon, Canon, and even smartphones. What mistake did Kodak make? "
Answer: It only focused on brand competitors
Explanation:
The options to the question are:
A) It idenfied the wrong brand competitors.
B) It was too obsessed with market dominance.
C) It only focused on brand competitors.
D) It didn't engage in competitive analysis.
E) It refused to collaborate with its competitors.
From the question, we are informed that Kodak focused on maintaining market dominance over Polaroid and Fuji but failed to consider Sony, Nikon, Canon, and even smartphones.
The mistake made by Kodak was that it only focused on brand competitors. Kodak failed to realise that firms such as Sony, Nikon, Canon, and even smartphones are competitors as well.
Sandy's Soda Co. is planning an investment in new cooling equipment that would cost $56,000. The new equipment would save on operating costs over the next 5 years as follows: $21,500 in year 1; $23,100 in year 2; $19,000 in year 3; $13,900 in year 4; and $15,200 in year 5.The payback period for the cooling equipment is ______ years.
Answer:
It will take 3 years and 219 days to cover for the initial investment.
Explanation:
Giving the following information:
Initial investment= $56,000
Cash flow:
$21,500 in year 1
$23,100 in year 2
$19,000 in year 3
$13,900 in year 4
$15,200 in year 5
The payback period is the time required for the cash flow to cover the initial investment.
Year 1= 21,500 - 56,000= -34,500
Year 2= 23,100 - 34,500= -11,400
Year 3= 19,000 - 11,400= 7,600
To be more accurate:
(11,400/19,000)*365= 219
It will take 3 years and 219 days to cover for the initial investment.
Considering the situation described above, the payback period for the cooling equipment is 2.6 years.
The step by step is explained below for better illustration:
Given that Initial investment= $56,000
Where Cash flow in year 1 => $21,500
Cash flow in year 2 => $23,100
Cash flow in year 3 => $19,000
Cash flow in year 4 => $13,900
Cash flow in year 5 => $15,200
Therefore, the payback period is the time required for the cash flow to cover the original investment.
Hence, after two years, $44,600 ($21,500 + $23,100);
The amount left to be paid back is ($56,000 - $44,600) => $11,400
Therefore, $11,400 ÷ $19,000 = 0.6;
Thus, the total payback period is approximately 2.6 years.
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"Institutional portfolio managers have been allocating an increasing percentage of their funds to cash and cash equivalent positions. This is an indication that their market sentiment is:"
Answer:
Bearish
Explanation:
In the financial markets a bullish market is when securities being traded are increasing in price. While a bearish market is when securities reduce in price.
Investors buy more securities in a bullish market, so they have less cash.
In a bearish market investors sell the securities that are losing value, so they will have more cash on hand.
So cash position increased in a bearish market while cash position reduces in a bullish market
"Pension funds seeking safety of principal and maximum income would use which investment strategies?"
Answer:
Purchase government and agency securities and sell covered call contracts.
Explanation:
Purchase government and agency securities and sell covered call contracts because the pension amount or fund must be managed prudently. Therefore, the purchase of government securities suitable as the sale of its covers calls contract. While short sell covers more risk so it is not suitable. Additionally, sell short govt. securities include the sale of naked call contracts.
Suzie Smith is a real estate sales associate. She is a top producer and likes to maintain her independence. She sets up her office in her home, independent of the broker. She maintains her own telephone, secretary, administrative assistant and cell phone. She communicates with her broker once a week or he comes to see her at her office. Is this a workable situation?
Answer:
No
Explanation:
Suzie's situation isn't workable because she is meant to be under the direct supervision of her broker no matter what her personal preference for independence.
This is because should anything go wrong in any of her dealings, the brokers's license will be revoked. This means that the broker is directly responsible and accountable for her actions and as such must ensure that she is present at the office at all times.
Cheers.
The level of savings in Japan has historically been high relative to the level of domestic investment. Based on this information, we would expect that
Answer:Japan's net exports have been relatively high.
Explanation:
Japan is one company that's really stable in the world economy. It has so many factories around it's state that it enables them produce most of what they use and helps them have a large export marketing drive as most of their goods are desired worldwide. This makes their net exports very high.
Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent. What are her options?
(A) Susan must obtain her real estate license or use a licensed real estate agent to sell her property. She cannot be compensated for the sale of her property unless she is representing another person.
(B) Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.
(C) Susan will be negotiating the purchase price of her home and must be licensed to do so.
(D) Both A and C
Answer: B. ) Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.
Explanation:
From the question, we are informed that Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent.
In this scenario, the ideal thing for Susan to do is to sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.
Jack decided to save 10% of his annual earnings for 5 years so he could purchase a Tesla. After 5 years, what change in the economy would cause an increase in the purchasing power of the funds he has managed to save
Answer:
Deflation
Explanation:
A deflation is a fall in general price level.
When there is a deflation, things become cheaper and purchasing power increases.
Deflation is usually caused by a widespread fall in demand
For example, if there is a deflation, the price of the Tesla would fall and it would be relatively cheaper than it was 5 years ago.
Assume there are routine inventory sales between parent companies and subsidiaries. When preparing the consolidated financial statements, which of the following line items is indifferent to the sales being either upstream or downstream?
a. Consolidated retained earnings
b. Consolidated gross profit
c. Noncontrolling interest share
d. Controlling interest share of consolidated net income
Answer:
B. Consolidated gross profit
Explanation:
When businesses are said to be involved, gross profits in business is simply revenue from sales minus the costs to achieve those sales. In several cases, some people might say sales minus the cost of goods sold. It tells you how much money a company would have made if it didn’t pay any other expenses such as salary, water, electricity, income taxes, copy paper, rent and so forth for its employees. It's calculation is simple and done by subtracting cost of the goods sold from revenue. That is:
Gross Profit = Total Revenue - Cost of Goods Sold (COGS).
An airline company that changes its logo is using which of the following strategies to keep up revenue in the maturity stage?
marketing mix modification
brand extension
product modification
market modification
Answer:
marketing mix modification
Explanation:
The company is changing one of the variables of the marketing mix.
The marketing mix variables are product, price, promotion and place, and the logo is part of the product viarble.
Mature companies sometimes change their logos in order to renew this part of their marketing mix, in order to reach new customers, or keep some of th existing ones who might be sensitive to novelty.
Answer:
A. Marketing mix modification
Explanation:
When Sony introduced the first consumer VCRs in the 1970s, the retail price exceeded $1,000. Within a few years, the price dropped well below $500. This is an example of: Group of answer choices
Answer:
Skimming strategy
Explanation:
The price skimming strategy refers to the strategy in which the firm charge high price at the earliest time and then it reduced the price as the time passes
Since in the question it is mentioned that first Sony introduced the VCR at $1,000 then it falls the price i.e less than $500
So this situation represents the skimming strategy
What are three common business uses of information and communication systems.
Answer:
TPS, DSS, MIS, and ESS
Explanation:
I think, i might not be right
On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is:_____
a. excludable, but nonrival in consumption.
b. excludable and rival in consumption.
c. not excludable and nonrival in consumption.
d. not excludable, but rival in consumption.
Answer:
b. excludable and rival in consumption
Explanation:
For categorizing the goods as private or public, the two terms we need to understand i.e. rivalry and excludability
The rivalry refers only one person could consume it no other has the right to consume the same thing
While on the other hand, the excludable arise when you stop someone from using a particular thing
So here in the given case, the option b is most appropriate as it is fit to the scenario
establishing a strong, defensible market position, and (2) achieving financial objectives that repay investment as its main priorities?
Answer: Growth Stage
Explanation:
The priorities in the growth stage of the Product Life cycle are to achieve a strong, defensible market position, as well as to achieve financial objectives that repay investment.
The Growth stage is the second stage in the Product Life Cycle where the product is now beginning to gain popularity amongst people which is translating to increased sales and profitability. As a result, the company would want to prioritise using this time of it being popular to get it into a strong position in the market so that it can remain a success.
They would also want to leverage the profits coming in to be able to repay the investment.
"A repurchase agreement is effected between two U.S. Government securities dealers. The interest charged under the agreement is the:"
Answer:
"repo" rate, paid by the seller of the securities to the buyer
Explanation:
For a given situation whereby repurchase agreement occurs between 2 government dealers, what is involved is that government securities dealer transacts securities with another dealer, based on consensus to buy them back at a future period.
The selling dealer receives money, and in return, pledges to pay interest to the buying dealer. The interest rate charged is referred to as the "repo" rate which simply means the repurchase agreement interest rate.
Hence, the correct answer in this case, is "repo" rate, paid by the seller of the securities to the buyer
A buyer and seller enter into a written contract for the sale of a four-bedroom home. If either party defaults under the contract, the other party has how much time to file a lawsuit for specific performance?
Answer: Four years
Explanation:
One of the vital reasons for agreement is that they bind both parties in fulfilling each other's vow to what they have agreed and when any of the party goes contrary to the agreement a law suit is filed against them, the specific time to file a law suit against the other party involving structures is four years.
A nation’s nominal gross domestic product (GDP) _____. rev: 04_09_2018 Multiple Choice is the dollar value of all final output produced by its citizens, regardless of where they are living is the dollar value of all final output produced within the borders of the nation during a specific period of time is always some amount less than C + I + G + NX can be found by summing C + I + S + NX
Answer:
is the dollar value of all final output produced within the borders of the nation during a specific period of time.
Explanation:
A nation’s nominal gross domestic product (GDP) is the dollar value of all final output produced within the borders of the nation during a specific period of time. Under a nominal gross domestic product (GDP) calculation for an economy, the current dollar value of the finished goods and services within the country is used. Since it is a measure that uses the current dollar value, it also include changes in price due to inflation or an increase in price in the economy. Therefore, it does not give an accurate estimate of the performance of an economy because the prices of finished goods and services are inflated.
Everyâ week, Ben plays the piano for four hoursâ, and his grade on each psych test is 80 percent. Lastâ week, after playing for four hoursâ, Ben considered playing for an additional hour. He decided to play for another hour and cut his study time by oneâ hour, but last week his psych grade was 65 percent.
Did Mary make her decision on the margin?
a. Mary's decision was not made at the margin because she could have chosen not to play the piano but didn't
b. Mary's decision was not made at the margin because the marginal cost of a lower grade always exceeds its marginal benefits
c. Mary's decision was made at the marginal because her grade fell by only 20 percentage points
d. Mary's made her decision at the marginal because the considered the benefit and cost of one additional hour of playing the piano
e. Mary's decision was not made at the marginal because she didn't compare the total benefit and total cost of a third hour of playing the piano
Answer: d. Mary's made her decision at the marginal because the considered the benefit and cost of one additional hour of playing the piano.
Explanation: Making marginal decisions or making decision on the margin involves making comparison between the cost and benefit attached to a particular behavior or involvement before making a decision. In the scenario above, the additional benefit attached to playing one more hour of piano and the cost incyrred by cutting reading hour by one hour was weighed and considered by Ben before finally making a decision. This means the decision was made on the margin.
A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases from 60 to 100. The price elasticity of demand using the midpoint formula is therefore
Answer:
Explanation:
In using the midpoint method to calculate price elasticity , the average percentage change in the price and quantity are used
formula = percentage change in quantity = (Q2 -Q1/(Q2+Q1)/2)*100
Percentage change in price = ( P2 -P2/(P2-P1)/2)*100
Price changes = $1.5 to $1.3
Quantity changes = 60 to 100
Percentage in price = (1.3-1.5 /(1.5+1.3)/2 )*100
(-0.2/1.4)*100 =-14.29%
Percentage in quantity = (100-60/(100+60)/2)*100
40/80*100 = 50%
Therefore , price elasticity of demand = 50/-14.29 = -3.5
With the elastic interval being less than 1 , it means that it is an inelastic demand
Does Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Firm A. The dominant strategy for Firm A is a high price. b. Does Firm B have a dominant strategy? The dominant strategy for Firm B is a high price. The dominant strategy for Firm B is a low price. No, there is no dominant strategy for Firm B. c. What are the Nash equilibria in this game? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Both Firm A and Firm B charge a low price. unanswered Both Firm A and Firm B charge a high price. unanswered Firm A charges a low price and Firm B charges a high price. unanswered Firm A charges a high price and Firm B charges a low price. unanswered There are no Nash equilibria in this situation.
Answer:
Explanation:
I will give a basic hint to understanding this problem
Prevailing technique or what is best known as "Dominant Strategy" is an activity profile that is best for a specific player review of what different players are picking. for this situation there is no prevailing procedure for any player on the grounds that there is no single activity profile that expands the result for any player.
So we can say from this observations that the following is valid;
A doesn't have a dominant strategyB doesn't have a dominant strategyThere are two Nash equilibria for this situation. Both the organizations are charging a low cost and both the organizations are charging a significant expense.
As such they can augment their benefit given what the adversary is doing.
I hope this explains the observation seen.
cheers I hope this helps
Carlos approaches a bank for home loan. He is denied the loan when the verification of his credit history through his credit report reveals he has defaulted in the payment of a car loan. Carlos realizes that the information provided by the credit bureau is erroneous. Which law allows for action to be taken in case of errors in his credit report? A. Fair Debt Collection Practices Act B. Fair Credit Billing Act C. Fair Credit Reporting Act D. Credit Card Accountability, Responsibility and Disclosure Act
Answer:
C. Fair Credit Reporting Act
Explanation:
Fair Credit Reporting Act was brought into action to lay governance on the credit bureaus regarding their consumers' credit information. The act presents the rules and regulations to be followed to obtain and present the credit details of the consumers. Also, it looks over the manner in which the details are shared with the consumers and others for various other purposes.
According to the given excerpt, the Fair Credit Reporting Act allows Carlos to take an action in case of any error found in his credit report.
Answer:
C. Fair Credit Reporting Act
Explanation: