If a website facilitates the sale of goods by individuals and businesses over the internet, but requires actual photos of every item for sale to be posted instead of a manufacturer's stock picture of the product, both the demand and supply of products in good condition will shift due to the improved information. If supply shifts by more than demand, quantity will _____________ and price will _____________.A. decrease, be indeterminateB. increase, be indeterminateC. increase, decreaseD. decrease, increase
Answers
Answer:
D. decrease, increase
Explanation:
If actual pictures are used ,the demand and supply of products in good condition would increase.
But if the supply increases more than the demand, there would be excess supply.
When there's excess supply, quantity increases and price falls.
I hope my answer helps you.
Final answer:
When both supply and demand increase due to improved information, but supply increases more than demand, the quantity traded will increase while the price will decrease. Therefore, the answer to the student's question is option C: increase, decrease. The correct option is c.
Explanation:
If a website mandates actual photos for every item sold, this could improve information symmetry between buyers and sellers, thus potentially affecting both demand and supply. Specifically, the improved information might increase demand for items in good condition because buyers would have more trust in the quality of the product they are considering purchasing. On the other hand, the supply of products might also increase because sellers are now able to better demonstrate the quality of their products, possibly leading to a larger number of transactions.
According to economic principles, an increase in demand, all else being equal, tends to raise both the price and quantity traded of a product. Conversely, a decrease in demand would likely lower both the price and quantity traded. When we look at supply, an increase in supply, holding all else constant, tends to lead to a fall in price but an increase in the quantity traded. A decrease in supply would raise the price and decrease the quantity traded.
To answer the student's question directly, if supply shifts by more than demand because of improved information from actual photos, the equilibrium quantity will increase due to the greater supply outweighing the change in demand. The price of the products will decrease because the increased supply will put downward pressure on prices. Therefore, the correct answer is C. increase, decrease.
Related Questions
As a manager at IceCold Foods, Oscar is responsible for the firm's S'Cream brand of ice cream. He recently approved a proposal to test market new ice cream flavors. He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign. Oscar serves as a(1) product development manager.(2) brand manager.(3) target market manager.(4) commercialization manager.
Answers
Answer:
(2) brand manager
Explanation:
Based on the information provided within the question it can be said that Oscar is serving as a brand manager at iceCold Foods. This role focuses on managing the company's products, services and product lines in order for them to perform well and be accepted and liked by their customers. This includes approving new products as well as managing prices like what Oscar is doing.
If an activity generates a positive externality, the government can increase total economic surplus by ______the activity, and if an activity generates a negative externality, the government can increase total economicsurplus by ______ the activity.
A.taxing; banning
B.subsidizing; banning
C.subsidizing; taxing
D.publicizing; taxing
Answers
Answer:
C.subsidizing; taxing
Explanation:
When an activity generates positive externality, the benefits to third parties not involved in production or consumption exceeds the costs. Government can encourage the production of goods that provide positive externality by subsidizing production. Production activities that can generate postive externality is research and development.
When an activity generates negative externality, the benefits to third parties not involved in production or consumption is less than the cost. Government discourage production of goods that generate negative externality by taxation to increase cost of production.
Other things held constant, which of the following actions would increase the amount of cash on a companys balance sheet? Select one:a. The company repurchases common stock.b. The company pays a dividend.c. The company issues new common stock.d. The company gives customers more time to pay their bills.e. The company purchases a new piece of equipment.
Answers
Answer:
Correct option is (c)
Explanation:
When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.
Payment of dividend also decreases cash from balance sheet.
When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.
When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.
Purchase of new equipment will reduce cash balance.
So issue of new shares increase cash balance in balance sheet.
Answer:
The company issues new common stock
Explanation:
A bona fide occupational qualification is a defense to discrimination charges if: a. it can be established that customer preference is the basis for discrimination. b. the job can be established as too strenuous for women. c. it is customary for a woman to hold the job. d. none of the above
Answers
Answer:
D
Explanation:
Bona fide occupational qualifications has been created to allow certain criteria for employment which is not necessarily in the Civil Rights Act of 1964 which does not permit any form of discrimination in employment.
Bona fide occupational qualifications allow an employer to hire individuals for some of the following reasons: religion, sex, age, and national origin, only if they are reasonably necessary for that business or organization.
Lyric Company issued a 90-day zero-interest-bearing note with a face amount of $3,000. The present value of the note is $2,855. The journal entry to record the issuance of the note will include
Answers
Answer:
Cash.........................Dr $2,855
Discount on notes payable $145
Notes payable $3,000
(Notes issued at discount)
Explanation:
Zero interest note, as the name suggests are issued with no interest charged on amount due. As such, notes are issued at a price that is lesser than face value. Difference between face value and present value of note represent discount on notes payable.
Journal entry to record issue of notes payable:
Particulars Debit Credit
Cash $2,855
Discount on notes payable $145
Notes payable $3,000
(Notes issued at discount)
Cash is debited with present value of note of $2,855 as notes are issued less than face value.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
a. raise the price of its tables
b. increase its level of table production
c. continue producing 250 tables
e. decrease its level of table production
Answers
Answer:
e. decrease its level of table production
Explanation:
MC = 200.
Market price = 150 which cannot be changed by any firm.
MC is greater than price = MR then in order to maximise profit MR has to be equal to marginal cost
MC has to be decreases to $150 which is possible only when it reduces output.
Key practices in the partnering approach to managing contracted relationships include ch12 Select one:_______a. Structured communicationsb. Risk being transferred to the other party.c. Independent project teamsd. Single project contractinge. Access to each other's organizational resources
Answers
Answer:
The correct answer is access to each other's organisational resources
Explanation:
There are numerous aspects of partnering approach in managing relationship. The significant advantage of this approach is that it helps to create an environment in which two parties can work along and start a healthy relationship where they can easily access organisational resources of each other. This approach helps firms and organisations to grow.
Key practices in the partnering approach to managing contracted relationships typically include: Structured communications. A is correct.
In the partnering approach, structured communications are essential to ensure that all parties involved in the contract have open and transparent channels for communication. This helps to build trust, facilitate collaboration, and address any issues or concerns that may arise throughout the duration of the contract.
"Structured communications" is a key practice in the partnering approach to managing contracted relationships. It involves establishing clear and effective channels for communication between all parties involved in the contract. This includes regular meetings, progress updates, feedback sessions, and formal communication protocols to ensure that information is shared efficiently and effectively. Structured communications help build trust, foster collaboration, and mitigate misunderstandings or conflicts that may arise during the contract period.
In the Statement of Financial Accounting Concepts (SFAC) No. 8. SFAC No. 8 the position about materiality is that: Group of answer choices It should always be determined only through qualitative evaluations It should always be determined through quantitative evaluations It should always be determined by considering whether the amount affects past financial statements It should be determined by how the magnitude of the item would be viewed by a reasonable person
Answers
In the Statement of Financial Accounting Concepts (SFAC) No. 8, materiality is determined by how the magnitude of the item would be viewed by a reasonable person. Materiality can involve both qualitative and quantitative factors. The focus of materiality is on whether the information about the item would influence the decisions of the users of financial statements.
Explanation:Statement of Financial Accounting Concepts (SFAC) No. 8 and Materiality
In the Statement of Financial Accounting Concepts (SFAC) No. 8, the position about materiality is that it should be determined by how the magnitude of the item would be viewed by a reasonable person.
Qualitative and Quantitative Factors
Materiality can involve both qualitative and quantitative evaluations. Qualitative factors consider the nature and impact of an item on the decision-making process, while quantitative factors consider the monetary amount of an item.
Reasonable Person Perspective
Materiality focuses on whether the information about the item would influence the decisions of the users of financial statements. The viewpoint of a reasonable person is taken into account to assess how significant an item is.
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"If you don't watch them like a hawk, they'll stop working, go sit in the air conditioning, send texts on their phones long dash do anything but work!" according to Stan, a supervisor of molders in an iron foundry. Stan agrees with _______________. A. the two-factor theory B. Theory X C. Theory Y D. Theory Z E. the theory of learnin
Answers
Answer:
The answer is letter B
Explanation:
THEORY X
Which of the following modes of cargo transport can be characterized as being inexpensive, very slow and inflexible, and good for transporting very heavy, very bulky, and containerized cargo?
Answers
Answer:
water carrier transports
Explanation:
Based on the information provided within the question it can be said that the mode of transportation that is characterized exactly as is described in the question are water carrier transports. These are giant ships that transport shipping containers filled with all sorts of goods through different naval routes. Since they can take a wide variety of containers at any given moment it makes them the cheapest and safest option.
MC 07 Countries A, B, and C are at a particular... Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a Multiple Choice free trade area. common market. political union. preferential trade area.
Answers
Answer:
common market
Explanation:
We are not told anything about the political status of contries A, B and C, so we should assume that they lack political unity, therefore they are forming only a common market.
A common market is defined by a group of countries that impose few or no duties to common trade between them, but impose common tariffs on external trade.
The European Union started as a common market during the 1960s and 1970s known as the European Economic Community. Then it evolved into a political union. Another example would be the Mercosur in South America.
According to the __________, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.
Answers
The change in retained earnings is affected by which of the following?
Select one:_________
a. Payment of dividends and common stock.
b. Net income and common stock.
c. Net income and payment of dividends.
d. Net income and paid-in capital.
Answers
Answer:
c. Net income and payment of dividends.
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
Hence, the appropriate option is c.
Retained earnings are affected by the net income and the payment of dividends. Net income can increase retained earnings, while payment of dividends decreases retained earnings.
Explanation:The change in retained earnings is affected by both net income and the payment of dividends. Option c is the correct choice. Retained earnings refer to the net income that a company keeps after it has paid dividends to its investors. When a company generates net income, it has a choice: it can either distribute these earnings to the shareholders in the form of dividends or retain them within the company. The money that is kept or 'retained' in the business then becomes part of the 'retained earnings'. Conversely, when a company pays dividends, it decreases its retained earnings.
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Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.
Answers
Answer:
Market fragmentation
Explanation:
A commercial center where there is no organization that can apply enough impact to move the business a specific way. The market comprises of a few little to medium-sized organizations that contend with one another and huge endeavors.
Fragmented market prompts a littler client base, which makes it simpler for organizations to focus on their end purchasers all the more viably. Instead of squandering promoting assets on an enormous group of spectators, organizations can focus on their showcasing exercises on a littler however progressively pertinent crowd.
Which of the following statements about the consumption component of GDP is not correct?
A. Since 1960, the consumption component of GDP has generally increased as a fraction of GDP.
B. The consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined.
C. Consumption as a fraction of total GDP in the U.S. is larger compared to all other high income nations in the world.
D. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods.
Answers
The statement that the consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined is not correct.
Explanation:B. The consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined, is not correct. The correct statement would be that the consumption component of GDP in the U.S. is larger than the government and net exports components combined, but smaller than the investment component. The consumption component of GDP includes spending on goods and services by households, while the investment component includes spending on capital goods and structures by businesses.
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The incorrect statement is option D: Spending on services is not smaller than consumption spending on durable and nondurable goods. In fact, in developed economies, spending on services exceeds spending on goods.
Explanation:The incorrect statement about the consumption component of GDP is option D. Spending on services is actually larger than the amount of consumption spending on durable and nondurable goods. This is especially true in developed economies, like the United States, where spending on services, such as healthcare, education, and entertainment, tend to exceed spending on tangible goods. It is certainly true that since 1960 there has been a general trend of increase in consumption as a fraction of GDP (option A), and that the consumption component of GDP is the largest among the components - exceeding government spending, investment, and net exports combined (option B). However, it's not necessarily the case that the US's consumption as a fraction of GDP is larger than all other high-income nations (option C).
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_____ is responsible for coordinating Federal resources Federal resources that support State, local, tribal, and territorial efforts when a Federal emergency or disaster is declared.
A. Local government.
B. FEMA.
C. Regional government.
D. State government
Answers
Answer:
The correct answer is B
Explanation:
FEMA stands for Federal Emergency Management Agency, it is an agency which is responsible for coordinating the response of the federal government to the disasters which can be manmade or natural.
So, FEMA is responsible for the coordinating the Federal resources which support the Tribal, Local and State efforts when there is Federal emergency is declared.
FEMA (Federal Emergency Management Agency) is responsible for coordinating federal resources that support state, local, tribal, and territorial efforts when a federal emergency or disaster is declared. The correct option is B.
Federal Emergency Management Agency (FEMA) is a government agency in the United States with the aim is to coordinate and respond to disasters in the nation when local resources are not sufficiently met.
It is responsible for coordinating and responding to emergencies and disasters, both natural and man-made, within the United States.
Thus, the ideal selection is option B.
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A period marked by rising unemployment and high inflation is called a
Answers
Answer:
Stagflation
Explanation:
Stagflation is a period of slow economic growth, rising unemployment rate and high inflation rate.
Stagflation was first noticed in the US in the 1970s.
Stagflation is usually caused by an increase in money supply and a simultaneous decrease in money supply.
Holtzman Clothiers’s stock currently sells for $38.00 a share. It just paid a dividend of $2.00 a share (i.e., D(0) = $2.00). The dividend is expected to grow at a constant rate of 5% a year. What stock price is expected 1 year from now? What is required rate of return?
Answers
Answer:
Price in one year is $39.9
Required rate of return is 10.53%
Explanation:
Given:
Selling price of stock (P0) = $38
Dividend (D0) = $2
Growth rate = 5%
Stock price after a year = 38 × (1+0.05)
= $39.9
Stock price expected 1 year from now is $39.9
Using Gordon's constant dividend model to compute required rate of return:
r = [tex]\frac{D1}{P0} +g[/tex]
D1 = D0 (1+0.05)
= 2 × 1.05
= $2.1
Substitute the values in the above formula:
r = [tex]\frac{2.1}{38} +0.05[/tex]
= 0.1053 or 10.53%
The expected stock price of Holtzman Clothiers 1 year from now is $40.10. The required rate of return for holding this stock is 10.24%.
Explanation:The question pertains to two main concepts: expected stock price in the future and required rate of return. Firstly, to calculate the expected stock price 1 year from now, you need to account for the growth in the dividends. Given that the dividends of Holtzman Clothiers are growing at 5% per year, the dividend 1 year from now, D(1), will be $2.00*(1+5%) = $2.10. This represents the dividends that will be paid out next year. If you incorporate this into the current stock price, the expected stock price 1 year from now thus becomes $38 + $2.10 = $40.10.
Secondly, the required rate of return would be the sum of the dividend yield and the capital gains yield. Considering that the dividend payout is $2.10 and the expected stock price is $40.10, the dividend yield is $2.10 / $40.10 = 5.24%. As the dividends are growing at 5%, this is also the capital gains yield. So, the required rate of return for an investor would be 5.24% + 5% = 10.24%. This means an investor requires a return of 10.24% to hold Holtzman Clothiers's stock.
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Which leader behavior is most appropriate for a group of employees who are working together for the first time and are eager to begin but lack the experience and confidence needed to perform their roles?
a. Telling
b. Selling
c. Encouraging
d. Participating
e. Delegating
Answers
Answer:
Encouraging
Explanation:
Encouraging the new one is always be the best option to direct for positive roles. Encouraging is the best part of the result which motivates subordinates or even higher official to put out best from them.
It should be the duty of the leader of project to motivate or encourage their juniors or subordinates when they joined for the first time. at this time they need some positive words and emotion from the higher official so that they can put their efforts in positive direction.
Tiffany owns a health club and contracts to buy a set of weights from Dylan for $10,000. Dylan is hurting financially, so he changes the dollar amount on the contract to $18,000. Before delivering the weights, Dylan attempts to collect the $18,000 from Tiffany who accuses him of trying to cheat her. She has a copy of the contract with the original amount. When they end up in court, the court likely:
Answers
Answer:
the court would most likely not enforce the contract because Dylan changed the contract.
Explanation:
Based on the information provided within the question it can be said that if they end up in court, the court would most likely not enforce the contract because Dylan changed the contract. Tiffany agreed to a contract at a price of $10,000 since Dylan increased the price, Tiffany never agreed to this new price and thus the contract is not valid.
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.
a. late start date.
b. early finish date.
c. early start date
d. late finish date
Answers
Answer:
The correct answer is A that is late start date.
Explanation:
Late start date is the filed which comprise of the latest date on which a task could be started without delaying the finish of the project.
The date is grounded on the date when the task is started and also on the late start of the task, late finish dates of the tasks predecessor and the successor as well and also on other constraints.
So, the late start date for the activity is the latest possible time.
Skinner rejected ____ as a valid personality characteristic extinction reinforcements self-control traits
Answers
Answer: All of the answers
Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to leave the original wax in the mix aimed towards residential owners. Furniture Shine is employing a _____ product strategy.
Answers
Answer:
modified product - multiple markets
Explanation:
This type of strategy consists of offering different products, which are modified versions of some exiting product, to new markets.
In this case, the improved version of the wood wax is a modified version of the old wood wax, and is going to be targeted to a new and specific market (antique owners), while the original version is still going to be targeted at the current market.
Recently, Pfizer and Allergan – the makers of Viagra and Botox, respectively – initiated a $160 billion merger. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by granting companies patents for drugs approved by the Food and Drug Administration. For instance, Allergan spent large sums of money developing its popular wrinkle-removing neurotoxin, Botox, which is currently protected under a patent. Botox sells for about $15 per vial.Calculate the Lerner index if the marginal cost of producing Botox is $1.50 per vial.
Answers
Answer:
Lerner index for Botox = 0.9
Explanation:
The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P
Lerner index for Botox = ($15 - $1.50) / $15 = 0.9
0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.
The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.
Isabella is working with her boss on how to achieve the goals that have been set for the next year. So far they have agreed that Donna will start a graduate degree, she will be given 2 trainee assistants, and her budget allocation will be increased by 20%. What is Isabella doing?a) Critical incident
b) MBO
c) BARS
d) MARS
e) Checklist appraisal
Answers
Answer:
B) MBO
Explanation:
An MBO is a secondary vocational education program carried out in the Netherlands. It lasts for four years and its courses go from assistant training, basic vocational training, professional training and finally middle-management training. It is basically the dutch equivalent of technical college, since you start the MBO when you are around 18 years old. After you complete your MBO you can continue your college education.
The MBO covers a lot of professions but it is basically hands on training, since between 20 -60% of the time is practical training (they work as someone else's assistant or trainee).
Isabella is her boss's trainee and since she is about to graduate, she must start training 2 new assistants.
Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMs shows 300 check-outs, 900 stayovers, 250 transient arrivals and a 200-room group block that begins a three stay on that day. What is Peggy's current rooms available for sale for next Friday?A. 150B. 250C. 450D. 650
Answers
Answer:
option (A) 150
Explanation:
Data provided in the question:
Number of rooms in the hotel = 1500
Number of checkouts = 300
Number of stayovers = 900
Number of transient arrivals = 250
Group block that begins a three stay on that day = 200
Now,
Rooms available for next Friday
= Total number of rooms - ( stayovers + transient arrivals + group block)
= 1500 - ( 900 + 250 + 200)
= 150
Hence,
the correct answer is option (A) 150
Peggy currently has 150 rooms available for sale for next Friday at her 1500 room hotel after accounting for stayovers, group block reservations, and transient arrivals. The correct answer is option A: 150.
Explanation:To calculate Peggy's rooms available for sale for next Friday at her 1500 room hotel, we need to consider the given scenarios for that day:
300 check-outs900 stayovers250 transient arrivals200-room group blockWe start with the total rooms (1500) and subtract the rooms that will not be available for sale:
900 stayovers (these rooms are already occupied and not available for new guests)200-room group block (these rooms have been reserved for a group and are not available for new reservations)This results in 400 rooms (1500 total rooms - 900 stayovers - 200 blocked rooms). However, we still need to account for the 250 transient arrivals, which further reduces the number of rooms available for sale. After subtracting these arrivals, we are left with: 400 rooms - 250 transient arrivals = 150 rooms available for sale.
Which statement below best answers the economic question How to produce? A. Marco's products sell at prices ranging between $2 and $125. B. Marco sells his products at art shows, online, and by word of mouth. C. Marco uses locally harvested wood from a sustainable tree farm to make his products. D. Marco works as an independent artisan, crafting wooden figurines, toys, and games.
Answers
Answer: Marco uses locally harvested wood from a sustainable tree farm to make his products.
Explanation: According to economics before production a manufacturer needs to ask himself some critical questions, which are:
-What to produce
-Where to produce
-How to produce
How to produce is a question a producer should ask, regarding how the producer would go about production: the raw materials needed and the steps taken to produce the product.
Answer:
C. Marco uses locally harvested wood from a sustainable tree farm to make his products.
Explanation:
An example of a frictionally unemployed individual is a. Sylvia, who quit her job to spend more time with her children b. Rod, the lifeguard, who cannot find a job because the temperature is too low in October c. Ileana, a college student who quits her job to return to school d. Steve, an individual does not have skills to keep his job as an aerospace engineer e. Samantha, who quits her job to look for better one
Answers
Frictional unemployment refers to the time period between jobs when a worker is searching for, or transitioning from one job to another. The best example in the list given is Samantha, who quit her job and is searching for a better one.
Explanation:The subject of your question pertains to frictional unemployment, which is associated with individuals who are temporarily unemployed, either because they are switching jobs or are searching for a job for the first time. Considering the examples given, the textbook example of a frictionally unemployed individual would be option E, Samantha, who has quit her job to look for a better one. This action leads to a period of unemployment during her job search, even though there are jobs available for her skills. In this case, the friction is caused by the time it takes to match job seekers with job openings.
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Frictionally unemployed individuals are those in the phase of transitioning between jobs or actively seeking new ones. In the provided examples, the frictionally unemployed person is Samantha, who has quit her job to find a better one. This situation is a normal part of the workforce dynamics in a market economy.
Explanation:In economics, an individual is considered frictionally unemployed when they are transitioning between jobs or are in the process of searching for a new job. In the examples given, the frictionally unemployed individual would be Samantha, who quits her job to look for a better one. She is voluntarily leaving her job and actively seeking new employment, which is inherent to the concept of frictional unemployment. However, this is not a bad thing. Given the varying dynamics of the market economy where companies often experience changes, it is essential for individuals to find jobs that match their skills and preferences, not just acquire the first job available.
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A statement of cash flows usually does not include which of the following?
a. Net income
b. Increase in accounts receivable
c. Contributed Capital
d. Depreciation expense
e. All of the above.
Answers
Answer:
c.
Explanation:
A cash flow statement is a financial report that a company creates and completely details where the company's is receiving money from as well as how that money is being spent throughout a certain time period. Based on the answers provided, it can be said that all of them are part of a cash flow statement except for Contributed Capital. This is a the total value of the stocks that shareholders purchased from the company. Even though this is a money input for the company it does not get included in the cash flow statement.
In December 2000, currency was $340 billion, traveler's checks were $4 billion; checkable deposits owned by individuals and businesses were $450 billion, saving deposits were $1,900 billion, time deposits were $1,000 billion; and money market funds were $900 billion. What was the M1 in December 2000?
Answers
Answer:
M1 = $454 billion
Explanation:
given data
currency = $340 billion
traveler's checks = $4 billion
individuals and businesses = $450 billion
saving deposits = $1,900 billion
time deposits = $1,000 billion
money market funds = $900 billion
to find out
What was the M1 in December 2000
solution
we get here M1 in December that is
M1 = traveler's checks + check deposits .....................1
put here value we get
M1 = $4 billion + $450 billion
M1 = $454 billion
The M1 money supply in December 2000 was $794 billion, calculated by adding together currency ($340 billion), traveler's checks ($4 billion), and checkable deposits ($450 billion).
The M1 money supply includes the most liquid components of the money supply: currency, traveler's checks, and checkable deposits. Based on the information given for December 2000, we can calculate M1 by adding currency ($340 billion), traveler's checks ($4 billion), and checkable deposits ($450 billion).
Here is the calculation for M1 in December 2000:
Currency: $340 billion
Traveler's checks: $4 billion
Checkable deposits: $450 billion
Adding these together:
M1 = Currency + Traveler's checks + Checkable deposits
M1 = $340 billion + $4 billion + $450 billion
M1 = $794 billion
Therefore, the M1 money supply in December 2000 was $794 billion.