To determine the point at which the company will prefer supplier 1 over supplier 2, we need to calculate the total cost of production for each supplier at different levels of market demand. We can set up the following equations:
Supplier 1: TC = 3,500 + 2q + 4q
Supplier 2: TC = 3,500 + 1q + 4q + 0.005(4q)
Where q is the number of units produced and sold.
To find the point at which the company will prefer supplier 1 over supplier 2, we need to set the total cost of production for supplier 1 equal to the total cost of production for supplier 2 and solve for q:
3,500 + 2q + 4q = 3,500 + 1q + 4q + 0.005(4q)
6q = 3,500 + 3q + 0.02q
2.98q = 3,500
q ≈ 1,174
So, at a market demand of 1,174 units, the total cost of production for supplier 1 will be equal to the total cost of production for supplier 2, and the company will be indifferent between the two suppliers. For market demand below 1,174 units, supplier 1 will be preferred, and for market demand above 1,174 units, supplier 2 will be preferred.
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Suppose that a manufacturer produces two brands of a product, brand 1 and brand 2. Suppose the demand for brand 1 is x = 64 − p1 thousand units and the demand for brand 2 is y = 74 − p2 thousand units, where p1 and p2 are prices in dollars. If the joint cost function is C = xy, in thousands of dollars, how many of each brand should be produced to maximize profit? brand 1 Incorrect: Your answer is incorrect. thousand units brand 2 Incorrect: Your answer is incorrect. thousand units What is the maximum profit? Incorrect: Your answer is incorrect. thousand dollars
So the manufacturer should produce -6 thousand units of brand 1 and 6 thousand units of brand 2 to maximize profit, and the maximum profit is 468 thousand dollars.
To find the optimal production levels, we need to determine the profit function by subtracting the cost function from the revenue function:
Revenue function:
R = p1x + p2y
Cost function:
C = xy
Profit function:
P = R - C = p1x + p2y - xy
We can substitute the demand functions into the profit function to get:
P = p1(64 - p1) + p2(74 - p2) - (64 - p1)(74 - p2)
Expanding the terms and simplifying, we get:
P = \(-p1^2 - p2^2\)+ 138p1 + 148p2 - 4736
To maximize profit, we need to find the values of p1 and p2 that maximize the profit function. We can do this by taking the partial derivatives of P with respect to p1 and p2, setting them equal to zero, and solving for p1 and p2:
∂P/∂p1 = -2p1 + 138 + p2 = 0
∂P/∂p2 = -2p2 + 148 + p1 = 0
Solving these two equations simultaneously, we get:
p1 = 70
p2 = 68
Substituting these values back into the demand functions, we get:
x = 64 - p1 = -6
y = 74 - p2 = 6
These values don't make sense in the context of the problem, so we need to check if they correspond to a maximum or a minimum. We can use the second partial derivative test to do this. The Hessian matrix of the profit function is:
| -2 1 |
| 1 -2 |
Evaluating the Hessian matrix at (p1, p2) = (70, 68), we get:
| -2 1 |
| 1 -2 |
The determinant is (-2)(-2) - (1)(1) = 3, which is positive, and the upper left entry is negative, so we have a maximum.
Therefore, the optimal production levels are:
64 - p1 = 64 - 70 = -6 thousand units of brand 1
74 - p2 = 74 - 68 = 6 thousand units of brand 2
And the maximum profit is:
P =\(-p1^2 - p2^2\) + 138p1 + 148p2 - 4736
=\(-(70)^2 - (68)^2\) + 138(70) + 148(68) - 4736
= 468 thousand dollars.
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Which phrase describes insurance co-pays?
Coinsurance is a way of saying that you and your insurance carrier each pay a share of eligible costs that add up to 100 percent. For example, if your coinsurance is 20 percent, you pay 20 percent of the cost of your covered medical bills. Your health insurance plan will pay the other 80 percent.
Multiple choice!
How is it determined how much social security money a person gets?
Group of answer choices
Sales tax collected over past ten years
Average monthly wage when working
Number of children and grandchildren that an individual supports
Cost of living in the person's community
Answer:
I believe it’s the average monthly wage when working
Explanation:
Barbie and Jose are married and claim 2 exemptions. Last year Barbie earned $32,400 and Jose earned $28,600 in wages. Additional tax information for the year is as follows: Interest earned: $2,800; alimony paid: $5,900; contributions to IRA retirement fund: $2,300; state and local income taxes paid: $6,200; contributions to charity: $2,700. Find the taxable income if they file a joint return
Barbie and Jose's taxable income if they file a joint return is $38,600.
First, calculate Barbie and Jose's adjusted gross income (AGI) and then deduct their deductions and exemptions to find their taxable income.
1. Calculate their combined wages: $32,400 (Barbie) + $28,600 (Jose) = $61,000
2. Add interest earned: $61,000 + $2,800 = $63,800
3. Subtract alimony paid: $63,800 - $5,900 = $57,900
4. Subtract contributions to IRA retirement fund: $57,900 - $2,300 = $55,600 (their AGI)
Now calculate their deductions:
1. State and local income taxes paid: $6,200
2. Contributions to charity: $2,700
3. Total deductions: $6,200 + $2,700 = $8,900
To find their taxable income, we'll subtract their deductions and exemptions from their AGI:
1. Subtract deductions: $55,600 - $8,900 = $46,700
2. Subtract exemptions (assuming each exemption is worth $4,050): $46,700 - (2 x $4,050) = $46,700 - $8,100 = $38,600
So, Barbie and Jose's taxable income if they file a joint return is $38,600.
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Fine print contains what? A. Only stuff lawyers require B. A bunch of useless info C. Clear language designed to be easy to read D. Virtually all of the important info in an agreement. Which is it?
Answer:
D
Explanation:
A fine print is a term that refers to the business usage of the terms and the conditions.
Have important information regarding the company or the documents that are placed in the footnotes and they are essential for entering into an agreement.Hence the option D is correct.
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María, age 32, earns $60,000 working in 2022. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). María contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, Maria is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Maria's itemized deductions.
Her taxable income would be reduced by the $5,000 IRA contribution if she decides to make it, resulting in a lower tax liability.
Itemized Deductions Without IRA Contribution With IRA Contribution
Medical Expenses $6,000 $6,000
Casualty Loss $9,500 $9,500
Charitable Donations $6,000 $6,000
State Income Taxes $4,000 $4,000
Total $25,500 $25,500
Maria's IRA contribution would not affect her itemized deductions because IRA contributions are not deductible on Schedule A.
Instead, they are deducted from her taxable income on the front page of her tax return. Therefore, her taxable income would be reduced by the $5,000 IRA contribution if she decides to make it, resulting in a lower tax liability.
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Scarcity is central to the study of economics because it implies that.
Answer:
Every choice involves an opportunity cost
Explanation:resources are not unlimited
1.Should a competitive firm remain open in the short -run if it is not making a profit, but is able to cover its average variable costs?A. If the firm is not making a profit, it should shut-down.B. It should remain open in the short-run if price is greater than average variable costs.C. It should close, even if it is able to cover its average variable costs.D. It should close if it cannot cover all of its total cos2.A perfectly competitive firm will make a an economic profit at the point where MR = MC if the price that a firm charges is higher than its average cost of production for that quantity produced. true false3.the demand curve for a perfectly competitive firm's products is____________A. Perfectly ElasticB. Perfectly InelasticC. Unitary ElasticD. Unknown4.Marginal revenue is equal to price in monopolistic industries. true false5.A small farm normally is part of this type of market.A. Perfect CompetitionB. OligopolyC. Monopoly
1. B. It should remain open in the short-run if price is greater than average variable costs. In the short run, a competitive firm should continue operating as long as it covers its variable costs. This allows the firm to at least recover some of its costs, and it may be able to make a profit in the long-run if market conditions change.
2. True. In a perfectly competitive market, a firm will only make an economic profit when its price is higher than its average cost. This is because in a perfectly competitive market, there are no barriers to entry, so any b will attract new firms until the price is driven down to the point where firms are making only a normal profit.
3. A. Perfectly Elastic. In a b the demand curve for an individual firm's products is perfectly elastic, meaning that the firm can sell as much as it wants at the going market price, but cannot charge a higher price without losing all of its customers.
4. False. In monopolistic industries, the marginal revenue curve is downward sloping, meaning that the firm must lower its price to sell more units. This means that the marginal revenue is always less than the price, unlike in perfectly competitive markets where marginal revenue is equal to price.
5. A. Perfect Competition. Small farms are typically part of a perfectly competitive market, as there are many small farms producing similar products and no one farm has significant market power to influence the price.
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paid rs.5,500 to sabina and
received discount of Rs.500
Answer:
5000 RS (THIS IS CORRECT)
Explanation:
5500-500
Answer:
Rs 5000
Explanation:
=5500-500
5000.....
3. Someday, Liam would like to be a master electrician. In order to achieve his goal, what would be a good job for Liam to take along
his career pathway?
apprentice to a residential electrician
internship at an architecture firm
junior mechanic for a machine rental agency
All changes saved
receptionist for a site project manager
A good job for Liam along his career pathway to becoming a master electrician would be an apprentice to a residential electrician (A). An apprenticeship would provide Liam with hands-on training and experience working with an experienced electrician, which would be valuable in helping him to develop the skills and knowledge necessary to become a master electrician.
Answer:
a
Explanation:
i just took this test
Nominal GDP in 2006 was $13,458.2 billion. In 2006, the GDP deflator was 116.9. What was the real GDP for 2006 if the GDP deflator uses 2000 as the base year?
A)
$15,732.6 billion
B)
$15,746.1 billion
C)
$11,512.6 billion
D)
$11,522.5 billion
The real GDP for 2006 if the GDP deflator uses 2000 as the base year is $11,512.6 billion. The correct option is c.
Real GDP = Nominal GDP/GDP Deflator*100
= 13458.2/116.9*100
= 11512.6 billion
Real GDP is a macroeconomic statistic that represents the value of goods and services generated by an economy over a certain time period while taking into account price fluctuations. It essentially gauges a country's total economic output while accounting for price changes, whether caused by inflation or deflation.
Real GDP is an inflation-adjusted measure of the total value of goods and services generated by an economy in a given year. It is measured in base-year prices and is sometimes known as constant price GDP, inflation-corrected GDP, or constant dollar GDP.
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Recently, More Money 4U offered an annuity that pays 4.8% compounded monthly. If $1,092 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is intere
The interest earned in the account after 7 years is $55,221.52.
After 7 years of depositing $1,092 into an annuity that pays 4.8% compounded monthly, the total amount in the account can be calculated using the future value of an annuity formula.
The future value (FV) of an annuity is calculated by multiplying the monthly deposit amount by the future value factor. The future value factor is calculated using the formula (1 + r)^n - 1 / r, where r is the interest rate per period and n is the number of periods.
In this case, the monthly deposit amount is $1,092, the interest rate is 4.8% (or 0.048 as a decimal), and the number of periods is 7 years multiplied by 12 months, which equals 84 periods.
Using the formula, the future value factor is (1 + 0.048)^84 - 1 / 0.048 = 126.6974.
Multiplying the monthly deposit amount by the future value factor, we get $1,092 * 126.6974 = $138,413.18.
Therefore, after 7 years, there will be $138,413.18 in the account.
To calculate the interest earned during this period, we subtract the total deposits made from the final account balance: $138,413.18 - ($1,092 * 84) = $55,221.52.
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Olde ple designs and manufactures shoes Olde ple can select only one of two protsenth of which wow Depending on the state of the economy, nach project has different throws Project Casual shoes Formal shoes Weak Economy 200,000 800,000 Strong Economy 1.600.000 1.400,000 The probability of a weak economy is 45% and a strong economy in 65%. The firm needs to raise 600.000 cott toner om next year Calculate the total firm wealth for both projects in both scenarios. If Olde ple's managers wish to maximize the total wealth of the who they invest in? Calculate the wealth available to shareholders for both projects in both scenarios. It Olde ple's managers wish to maximize shareholder en which proact should they invest in? mark it.
To calculate the total firm wealth and wealth available to shareholders for both projects in both scenarios, we can multiply the profits of each project by their respective probabilities.
Let's calculate the total firm wealth: For Project Formal shoes: Weak Economy: 800,000 * 0.45 = 360,000 Strong Economy: 1,400,000 * 0.65 = 910,000 Now, let's calculate the wealth available to shareholders: Assuming the cost of capital is 600,000: For Project Casual shoes: Weak Economy: 90,000 - 600,000 = -510,000 (Loss) Strong Economy: 1,040,000 - 600,000 = 440,000 To maximize total firm wealth, Olde Ple should invest in the project with the highest total firm wealth. In this case, it would be Project Formal shoes, which has a higher total firm wealth in both scenarios. To maximize shareholder wealth, Olde Ple should invest in the project that provides a positive wealth available to shareholders. In this case, it would be Project Formal shoes in the strong economy scenario, which has a wealth available to shareholders of 310,000.
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How is a cryptocurrency exchange different from a cryptocurrency wallet?
Clearwater Electronics has an employee recruitment and retention goal of 90 percent. How does HR planning best help the company meet or exceed its employee recruitment and retention goal?
Clearwater Electronics has an employee recruitment and retention goal of 90 percent. HR planning is one of the most critical functions that can help the company meet or exceed this goal. This is because HR planning plays a vital role in determining what the company's future workforce will look like and what skills and competencies they will need to succeed.The first step in HR planning is to assess the current workforce.
This includes evaluating employee performance, identifying skill gaps, and determining what skills and knowledge are needed to achieve the company's goals. Once this is done, HR can develop a recruitment plan that outlines the recruitment strategies that will be used to attract the best candidates for the company's open positions.Another important aspect of HR planning is retention. HR can develop retention strategies that are designed to keep the company's best employees on board. This can include offering competitive salaries and benefits, providing training and development opportunities, and creating a positive work environment. HR can also use employee feedback to identify areas for improvement and make changes that will help to retain employees.By focusing on recruitment and retention through effective HR planning, Clearwater Electronics can achieve its goal of a 90 percent employee retention rate. This will not only help to reduce recruitment costs but will also improve the overall performance and success of the company.For such more question on strategies
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Production management has, historically, meant the activities managers do to help their firms produce , whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and.
The complete statement is "Production management has, historically, meant the activities managers do to help their firms produce goods, whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and services"
What is operations management?Generally, Production management, often known as operations management, is the act of planning and controlling the industrial processes to ensure that they run smoothly at the desired level. Techniques of production management are used not just in manufacturing but also in service-based businesses nowadays.
The full statement reads as follows: "Production management has traditionally referred to the actions that managers take to assist their companies in producing, whereas operations management has developed into a specialized management field that converts resources, including human resources, to produce goods."
To put it more simply, production management is the process of planning, coordinating, supervising, and regulating all of the operations associated with production. It integrates the six primary components, which are money, personnel, materials, machines, markets, and procedures, in order to satisfy a variety of people's requirements and requirements.
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Production management has, historically, meant the activities managers do to help their firms produce _______, whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and____
Q1.
Your company invested $500,000 five years ago that is now worth $1476732.
What is the annual interest rate that the company earned on compound interest basis.
Note: Provide your answer rounded to one decimal place WITHOUT the $ sign (ex: 23,4).
Q2.
How long does it to take double an investment if the investment pays only simple interest at the rate of 14 % per year?
: The annual interest rate that the company earned on the compound interest basis is 10.2%.Explanation:Given thatThe present value of the investment (PV) = $500,000The future value of the investment (FV) = $1,476,732n = 5 yearsRate of interest (r) = ?We need to find the annual rate of interest earned by the company on the compound interest basis.
So we use the formula for compound interest and solve for the rate of interest.r = [(FV / PV)^(1/n) - 1] * 100Putting the values in the formula, we get,r = [(1,476,732 / 500,000)^(1/5) - 1] * 100r = 10.2%Therefore, the annual interest rate that the company earned on the compound interest basis is 10.2%Q2.Main Answer: It will take 5 years to double an investment if the investment pays only simple interest at the rate of 14% per year.
Explanation:We know that the formula to calculate the amount of simple interest is given by:I = (P * r * t) / 100WhereI = Simple InterestP = PrincipalR = Rate of interestT = TimeThe amount A = P + IFor doubling the investment, the amount will be twice the principal.So, A = 2PA = P + (P * r * t) / 100Putting the values in the formula, we get,2P = P + (P * 14 * t) / 1002P - P = (P * 14 * t) / 100P = (P * 14 * t) / 100t = 100 / 14t = 7.14 yearsTherefore, it will take 7.14 years to double the investment if the investment pays only simple interest at the rate of 14% per year.Rounding off to 1 decimal place, we get,t = 7.1 years (approx)
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a musical instrument manufacturer is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. which macro strategy does this company demonstrate to achieve a sustainable competitive advantage?
Operational excellence is the plan for Niro music to gain a competitive advantage.
Early in the 1970s, Dr. Joseph M. Juran introduced the concept of operational excellence while educating Japanese industry leaders on how to improve quality. It was defined in the United States in the 1980s in reaction to "the crisis" experienced by large, established firms, whose market share was decreasing as a result of high-quality items imported from Japan.
An excellent workplace culture can be fostered using certain strategies and ideas that are part of the operational excellence style of thinking. Each employee must be able to recognise, provide for, and improve the flow of value to a client for there to be operational excellence.
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What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.
Answer:
A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOUPicture frames selling at $45 each have a variable cost is $15 each. The fixed costs of operating the shop are $7,500 per month. Given this data, the break-even point in number of units is: ___________
a. 650.
b. 500.
c. 475.
d. 250.
The break-even point in number of units is 250. Option D is correct.
The break-even point is the level of sales or production where the total revenue received by a business is equal to its total costs. At this point, the business is neither making a profit nor sustain a loss. The break-even point can be calculated by analyzing the relationship between fixed costs, variable costs, and revenue.
To calculate the break-even point in number of units, we can use the formula;
Break-even point (in units) =Fixed costs/(Price per unit - Variable cost per unit)
Plugging in the given values, we get;
Break-even point (in units) = $7,500 / ($45 - $15)
= $7,500 / $30
= 250 units
Therefore, the break-even point in number of units will be 250.
Hence, D. is the correct option.
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You are required to prepare, through education and ongoing study, to achieve and maintain your expertise in the industry in order to be able to competently represent the Buyer. This is an example of
Answer:
reasonable care
Explanation:
From the question we are given an instance, whereby You are required to prepare, through education and ongoing study, to achieve and maintain your expertise in the industry in order to be able to competently represent the Buyer. This is an example of reasonable care.
Reasonable care can be regarded as degree of caution as well as attention which would be given to possible dangers by ordinarily prudent or rational person in similar circumstances. Instance of this is a first aider, which his duty is to care towards casualties so that he can exercise reasonable care as well as skill as regards providing first aid treatment.
Define one key area of your daily life that would benefit if you learned to communicate better. Explain in detail how that key area would improve with better communication.
Answer:
if I learned to communicate better I would have more patience
Explanation:
if I were to communicate better I would have more patience with people it would help me understand other people's thoughts feelings and needs as well if I communicated my own thoughts feelings and needs it builds better relationships
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package? Question 27 options: Every month Every 6 months Every 12 months Every 18 months
chapter 11 shows that increased government purchases, with taxes held constant, can eliminate a recessionary gap. how could a tax cut achieve the same result?
Taxes can be maintained while closing a recessionary gap. Tax cuts would boost disposable income.
A tax cut is a reduction in the amount of money taken from taxpayers to fund government revenue. Tax cuts reduce government revenue while increasing taxpayers' disposable income. Tax cuts are commonly used to describe reductions in the percentage of tax paid on income, goods, and services.
Tax reductions, according to supporters, boost disposable income for an individual or family, encourage spending, and aid in economic expansion. Tax cuts, according to critics, only help the wealthy while cutting back on essential government services for the underprivileged.
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What kind of account requires you to leave your money in it for a specific
amount of time?
A. Savings account
B. Money market account
C. Checking account
D. Stock market account
SUBMIT
Answer:
B. Money market account
Explanation:
A money market account is a type of savings account that usually offers a higher interest rate in exchange for a higher minimum balance requirement and a longer-term commitment. The account holder must agree to leave a certain amount of money in the account for a specified period of time, which can range from a few months to several years. Withdrawing money early can result in penalties and fees.
Double entry Received commission by Cheque
Answer:
congratulations sirr
Explanation:
ask any question or queries not other things
sorry if this was hurtful to you
What does the concept of scarcity explain?choose three answers
The concept of scarcity explains:
why consumers are willing to pay high prices for items.why decisions must be made on how to use resourceswhy a single resource has more value than another resource.Scarcity as an economic idea "refers back to the basic reality of lifestyles that there exists most effective a finite quantity of human and nonhuman resources which the first-rate technical expertise is capable of the usage of to provide most effective restricted most amounts of each economic appropriate. shortage in economics refers to whilst the call for for a resource is greater than the deliver of that aid, as assets are limited. shortage consequences in purchasers having to make selections on how high-quality to allocate assets a good way to satisfy all simple needs and as many desires as feasible. shortage refers back to the confined availability of a useful resource in contrast to the infinite desires. shortage may be with appreciate to any natural assets or with admire to any scarce commodity. scarcity can also be called paucity of sources.
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Answer:
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why a single resource has more value than another resource.
Explanation:
why a product could lose significant value over time.
why people continue to purchase different products.
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why resources can be both renewable and nonrenewable.
why a single resource has more value than another resource.
(i took the test)
which of the following is not a recommended method of collecting competitive intelligence?
The following is not a recommended method of collecting competitive intelligence is HACKING.
Competitive intelligence is the collection of information that allows an organization to evaluate and monitor its competitors' actions and capabilities. It aids in decision-making, strategic planning, and market forecasting, as well as keeping organizations informed about industry trends and potential opportunities and threats. While there are various methods for gathering competitive intelligence, there are also certain methods that are not recommended.
Hacking is one of them, which is not a recommended method of collecting competitive intelligence.Hacking is an illegal and unethical method of obtaining information. By hacking into a company's computer systems or databases, a business may gain access to sensitive information about its competitors. This is not a recommended technique because it violates the law and may result in severe legal consequences for the business.
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The events in the foreign exchange market, everything else remaining the same that could have resulted in this change in the value of the u.s. dollar include _______.
The events in the foreign exchange market, everything else remaining the same that could have resulted in this change in the value of the u.s. dollar include Macroeconomic Factors,Political Developments etc.
To provide a comprehensive list of events that could result in a change in the value of the U.S. dollar in the foreign exchange market, it is important to consider several factors. Here are some key events that could influence the value of the U.S. dollar:
Macroeconomic Factors: Changes in economic indicators such as GDP growth, inflation rates, interest rates, employment data, or fiscal policies can impact the value of the U.S. dollar. Positive economic data or tighter monetary policies may strengthen the dollar, while weaker economic performance or looser monetary policies may weaken it.
Central Bank Actions: Decisions made by the U.S. Federal Reserve regarding interest rates, monetary stimulus, or changes in monetary policy can affect the value of the dollar. For example, raising interest rates can make the dollar more attractive to investors, potentially strengthening its value.
Political Developments: Political events, elections, or changes in government policies can impact currency values. Political stability, economic reforms, or geopolitical tensions can influence investor sentiment and affect the demand for the U.S. dollar.
Trade and Tariffs: Changes in trade policies, tariffs, or trade agreements can impact the value of the dollar. Trade disputes or negotiations with other countries may lead to fluctuations in currency exchange rates.
Market Sentiment and Investor Confidence: Market sentiment, risk appetite, and investor confidence can influence currency movements. Economic uncertainties, market volatility, or global events can lead to shifts in investor preferences and impact the value of the U.S. dollar.
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You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside
Savings is "FDIC Insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance
Is $500. What would happen to that money if Eastside Savings failed?
A.You could lose $250 since FDIC Insurance only covers 50% of the money you have deposited.
B.You would lose all of your money.
C.You would receive $250,000 since FDIC Insurance provides each account at the bank with $250,000 regardless of how much they
have deposited
D.You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Answer:
The correct option is D. You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Explanation:
Based on the information given what would happen to that money in a situation where Eastside Savings failed is that such individual would receive all the money he/she have deposited at Eastside Savings reason been that FDIC which is fully known as FEDERAL DEPOSIT INSURANCE CORPORATE insurance covers accounts up to the amount of $250,000 and Secondly Eastside Savings is "FDIC Insured".