What are the main roles of a central bank?

Answers

Answer 1

Conducting monetary policy to attain price stability low and stable inflation and assist in managing economic fluctuations is a crucial function of central banks. Recent years have seen significant changes to the policy frameworks within which central banks operate.

Globally, central banks are charged with a number of significant duties.  Central banks produce money, which is subsequently used by individuals, households, and corporations to conduct transactions and, essentially, track where money is being spent. Additionally, central banks are responsible for ensuring the stability of the financial systems in their respective economies. To do this, they must continuously monitor lending standards throughout the economy and guarantee that credit is available when needed. In that situation, they also serve as the government and commercial banks.

learn more about central bank here:

https://brainly.com/question/28024310

#SPJ4


Related Questions

which are more economically​ efficient, perfectly competitive markets or​ monopolies? compared to​ monopolies, perfectly competitive markets are

Answers

Monopolies are less productive than perfectly competitive marketplaces. Companies in a competitive market have more need to improve their production efficiency so as to avoid the wasteful overproduction that results in losses or shortages and the subsequent foregone profits that result from these situations.

When the supply of products and services exactly equals the demand for them, we say that the market is operating efficiently. The inefficiency of the market results in glutes and troughs of supply and demand.

A monopolistic market is one in which one company controls both the supply and the price of all of the product or service options available to consumers. Many different companies operate in a market where none of them exerts dominance over the others. No market operates in a monopolistic or totally competitive manner in the real world.

To know the difference between Monopoly and a Perfectly Competitive Market:

https://brainly.com/question/20379276

#SPJ4

you would like to combine a risky stock with a beta of 1.48 and u.s. treasury bills in such a way that the risk level of the portfolio will be equivalent to the risk level of the overall market. what percentage of the portfolio should you invest in the risky stock? 67.57% 63.32% 65.79% 56.8% 52.0%

Answers

The portfolio percentage should you invest in the risky stock is 67.57%.

Hazard parity (or risk premia parity) is an approach to investment management that specializes in the allocation of danger, commonly defined as volatility, in preference to the allocation of capital. The chance parity technique asserts that once asset allocations are adjusted (leveraged or deleveraged) to the same threat level, the threat parity portfolio can achieve a higher Sharpe ratio and may be more proof against marketplace downturns than the traditional portfolio. risk parity is at risk of considerable shifts in correlation regimes, which includes located in Q1 2020, which brought about the considerable underperformance of the chance-parity price range within the Covid-19 sell-off.[citation needed]

Roughly talking, the approach of constructing a threat parity portfolio is similar to growing a minimal-variance portfolio challenge to the constraint that every asset (or asset class, which includes bonds, shares, actual estate, and many others.) contributes similarly to the portfolio common volatility.

To learn more about risky parties visit here:

brainly.com/question/29409254  

#SPJ4

an information systems specialist reported that his performance on a project in northern sweden declined due to sleep deprivation during the summer months, when they had 20 hours of daylight per day. this productivity issue is caused by which environmental factor?

Answers

An information systems specialist reported that his performance on a project in northern Sweden declined due to sleep deprivation during the summer months, when they had 20 hours of daylight per day. This productivity issue is caused by geographic environmental factor.

When referring to environmental influences that affect genetics, we mean things like being exposed to pollutants where we live or work, such as pesticides or industrial waste, engaging in unhealthy habits like smoking or eating poorly, or experiencing stressful circumstances (such as racism).

Living conditions, health, and well-being of people are substantially influenced by environmental variables. Environmentally modifiable variables account for around 25% of the burden of disease globally and 25% of all fatalities.

To know more about Environmental Factor here

https://brainly.com/question/14222701

#SPJ4

why might large production quantities be necessary to justify metal deformation as a means of manufacture

Answers

When only a small yield is produced, it is too expensive to manufacture something since there are less expensive alternatives that are better suited to modest quantities of production. That's how it is justifiable that metal deformation is a means of manufacture.

Because they take place at lower temperatures than casting operations, deformation procedures consume less energy, and the deformation energy needed to change a shape is far less than the thermal energy needed to attain the molten state.

Generally speaking, nothing unusual is needed to create something that will be machined from a metal block. Without needing to purchase anything additional, a company can just place that block into their CNC machine and cut it to the required shape. They can also create something different immediately before and following that segment. Even though it could take some time and you might waste some metal, it's simple to start with little money.

Although there are many other ways that metal might deform, let's assume that you require forging. To complete the task, numerous specifically created tools may be needed. These instruments must all be individually machined because they are sometimes composed of pricey metals.

To learn more about Metal deformation, click here:

https://brainly.com/question/22076473

#SPJ4

debits to operating expenses totaled $100,000. what amount did ina pay for operating expenses during the current year?

Answers

The operating expenses for the current year would be $93,000

What do you mean by operating expense?

An continuing cost for maintaining a system, a business, or a product is known as an operating expense, operating expenditure, operational expenditure, operational expenditure, or opex. The cost of developing or providing non-consumable pieces for the product or system is its counterpart, a capital expenditure.

Operating Expenses $100,000Prepaid Expenses $5,000Accrued liabilities ($12,000)Cash $93,000

To know more about Expenses here

https://brainly.com/question/14697297

#SPJ4

which of these can arguably lead to a more participative structure and lead to improved communication in the organization?a. Vertically tall structures b. Structural interventions c. Centralization d. Command-and-control structure e. Decentralization

Answers

Decentralization can arguably lead to a more participative structure and lead to improved communication in the organization.

Decentralization is a particular type of organisational structure in which the top management assigns daily tasks and decision-making authority to intermediate and lower employees.

Decentralization is a particular type of organisational structure in which the top management assigns daily tasks and decision-making authority to intermediate and lower employees. Thus, with more time available, the senior management may concentrate on making important decisions. Businesses frequently feel that decentralisation is necessary to maintain operations. 

Decentralization in management is the systematic distribution of power among the various levels of management within an organisation. It explains how different organisational levels are given different amounts of decision-making authority. In other words, it alludes to the decentralisation of authority, responsibility, and authority-related activities.

To know more about Decentralisation

https://brainly.com/question/25661114

#SPJ4

What is a basic definition of an interest group choose the best answer ?

Answers

A group that uses a variety of advocacy techniques to sway public opinion and/or policy is known as an interest group or an advocacy group. Another term for an interest group is: educated society. Group of people with a shared area of expertise or special interest. college community.

A special interest group (SIG) is a collection of people who work together within a larger organization to advance a certain area of knowledge, education, or technology. Members may communicate, physically meet, and organise conferences as they collaborate to influence or create solutions in their specialised fields. The word was originally used in 1961 by the Association for Computing Machinery, an academic and professional computer association. Later, CompuServe, an early provider of online services, rose to prominence for SIGs, a section of the site dedicated to particular interests. These interest organisations speak on behalf of organisations that defend and assist weaker communities. For instance, the Sierra Club prioritizes protecting both the environment and the world's wild areas.

Learn more about educated society from

brainly.com/question/29607851

#SPJ4

what role is money playing when comparing a $5 price for a gallon of milk to a $4 price for a gallon of gasoline?

Answers

Money's role is as a store of value, when comparing a $5 price for a gallon of milk to a $4 price for a gallon of gasoline. Therefore, fourth option is the correct answer.

Money is a centralised, widely used, acknowledged form of exchange that makes it easier to exchange goods and services.

To address the shortcomings of the barter system, money was created. In the past, people engaged in business by exchanging products and services. The double coincidence of wants was one of the many drawbacks that frequently resulted from this. Money was first created as a common medium of transaction to address this issue.

To calculate the worth of all the goods and services exchanged in an economy, money can be employed as the unit of account. Prices in a market-based economy can be expressed using just one unit of value, which simplifies transactions and clarifies for consumers the value of an item or service. Therefore, the fourth option is the required answer.

Learn more about Money here: https://brainly.com/question/25959268

#SPJ4

Complete question:

What role is money playing when comparing a $5 price for a gallon of milk to a $4 price for a gallon of gasoline?

Money's role as a standard of deferred payment.Money's role as a unit of accounting.Money's role as a medium of exchange.Money's role as a store of value.

what is money you are paid based on a sertain number of hours worked multiplied by the rate earned per hour. A-royalty B-wage C-gift D-profit

Answers

Wage is the amount of money you get paid depending on the number of hours worked multiplied by the hourly rate. Hence, the correct answer is wage.

What is a wage?

A wage is a payment made by an employer to an employee for work done within a specific time frame. Wage payments include compensating expenditures such as the minimum wage, prevailing wage, and annual bonuses, as well as remunerative payments such as prizes and tip payouts. Wages are one of the expenses that come with owning a business. It is a commitment to the employee regardless of the success of the firm. The monetary unit that correlates to the standard units of working hours is the wage. The first such unit of time was the day of work, which is still frequently used today.

To learn more about wages, click

https://brainly.com/question/13847060

#SPJ1

abc inc. borrows money at 9%, sells bonds at 7%, and the purchasers of common stock require 15% rate of return. if the company has borrowed $40 million, sold $60 million in bonds, and sold $100 million worth of common stocks, what is the weighted average cost of capital (wacc)?

Answers

The weighted average cost of capital of ABC inc. is 11.4% as per the given bonds and common stock

A firm's weighted average cost of capital is the average of the firm's cost of capital raised from different sources, weighted by the firm's target capital structure. The weighted average cost of capital is often used as a benchmark discount rate in project evaluation.

The WACC is the average of the cost of capital from each source, weighted by the market value of the capital raised from each source, i.e.,

WACC = (40 * 9% + 60 * 7% + 100 * 15%) / (40 + 60 + 100)

WACC = 11.4%

Learn more about cost of capital:

https://brainly.com/question/16031467

#SPJ4

dividends declared during the year were $48,000. the dividends payable account increased by $4,000. which of the following will appear in the financing activities section of the statement of cash flows? a.dividends declared, $(48,000) b.change in dividends payable, $4,000 c.cash paid for dividends, $(44,000) d.cash paid for dividends, $(52,000)

Answers

$48,000 in dividends were declared throughout the year. The account for dividends due went up by $4,000 in total. dividends paid out in cash, in $ (44,000).

How should dividends be recorded?

The company's retained profits account is debited for the dividend amount on the first day that a dividend to shareholders is formally declared, while the dividends payable account is credited with the same amount. Debtor's Share of Retained Earnings Dividends Payable Credited.

Is the need to pay dividends a current liability?

A company's operating activities create money, which is used to pay down current liabilities that are reported on the balance sheet. Current obligations include, for example, accumulated expenses, short-term loans, and dividends payable.

To know more about payable account visit:

https://brainly.com/question/24317224

#SPJ4

when an agent breaches the agency agreement or agency duties under a contract, the principal has a right to avoid any contract entered into with the agent. This right of avoidance is at the election of the principle.

Answers

When an agent breaches the agency agreement or agency duties under a contract, the principal has a right to avoid any contract entered into with the agent. This right of avoidance is at the election of the principle of an Avoidance .

If an agent doesn't fulfill their obligations, they could be held accountable for contract breaches. Because there is no contract, a gratuitous agent cannot be held accountable for breach of it; instead, they are only held liable for torts.

According to section 219, an agent has a right to be paid the agreed-upon fee or, in the absence of an agreement, a reasonable fee for providing services to the principal that aren't free or uncompensated. As soon as the work he conducted is over, he is qualified to get the compensation.

To know more about Contract visit:

brainly.com/question/29816892

#SPJ4

An important reason why the Federal Reserve would not want to keep interest rates at 0% forever is that:
a) it restricts the money supply, making it harder for banks to lend money.
b) it limits the ability of the Fed to use expansionary monetary policy when the next recession occurs.
c) it makes borrowing for homes and major purchases more expensive.
d) it raises the possibility of higher unemployment because lower interest rates slow economic growth.

Answers

An important reason why the Federal Reserve would not want to keep interest rates at 0% forever is that: it limits the ability of the Fed to use expansionary monetary policy when the next recession occurs.

The Federal Reserve video display units economic machine risks and engages at home and abroad to help make certain the system helps a healthy economic system for U.S. households, groups, and organizations.

The Federal Reserve gadget is taken into consideration to be an independent significant bank. it is so, however, only within the feel that its choices do not have to be ratified with the aid of the President or everyone else within the government department of the government.

Below the Federal Reserve Act of 1913, each of the 12 nearby reserve banks of the Federal Reserve system is owned by means of its member banks, who originally ponied up the capital to preserve them jogging. The variety of capital stocks they subscribe to is based upon a percentage of every member bank's capital and surplus.

Learn more about Federal Reserve here:

https://brainly.com/question/25817380

#SPJ4

our project team reads a guideline that makes recommendations and provides references for the recommendations but provides no information about how the recommendations were produced. which statement best describes the degree of confidence your team should have in the recommendations?

Answers

The statement best describing is that guidelines should be judged as having questionable credibility unless the producer provides access to another document or resource regarding the production process

A project recommendation is a suggestion or proposal for a specific course of action or decision related to a project. It is typically made by an individual or group who has analyzed the project and identified potential solutions or recommendations that could improve the project's chances of success.

In the described situation, the project team reads a manual that offers suggestions and citations for those suggestions, but it gives no details about how those suggestions were developed. Therefore, unless the producer offers access to another document or resource outlining the production process, the recommendations should be viewed as having dubious authenticity.

Complete question

Your project team reads a guideline that makes recommendations and provides references for the recommendations but provides no information about how the recommendations were produced. Which statement best describes the degree of confidence your team should have in the recommendations?

a. If the recommendations are clear, specific, and citations are provided, your project team should have confidence in them.

b. If the recommendations resonate with the views of those in your agency, your project team should have confidence in them.

c. The guidelines should be judged as having questionable credibility unless the producer provides access to another document or resource regarding the production process

d. If the authors indicate that a consensus conference was held to produce the guideline, your project team should have confidence in them.

c. The guidelines should be judged as having questionable credibility unless the producer provides access to another document or resource regarding the production process

Read more about project on:

https://brainly.com/question/25009327

#SPJ4

chester's balance sheet has $95,551,000 in equity. if next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be chester's book value?

Answers

Chester's balance sheet has $95,551,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, 97,551,000 will be Chester's book value.

Book value = total assets - intangible assets - liabilities

Book value= 95,551,000 + 4,000,000 - 2,000,000=

What is Book value?

All claims senior to common equity (such as the company's liabilities) are deducted from the accounting value of the company's assets to determine book value. The accounting practise of documenting asset value at the original historical cost in the books is where the phrase "book value" originates.

The term "book value" refers to a company's value as it appears on its financial statements and is taken from its books or accounts. Theoretically, this is what investors would receive if they liquidated all of the company's assets in order to settle all of its liabilities.

To know more about book value, click here- brainly.com/question/23057744

#SPJ4

which, among the undernoted inter-market demand correlations, would make pooling work most effectively in order to reduce demand uncertainty ? a correlation of (-)0.50 among demand in two markets a correlation of 1.00 among demand in two markets a correlation of (-)0.83 among demand in two markets a correlation of 0.00 among demand in two markets

Answers

Answer: A correlation of 1.00 among demand in two

Explanation:

the current market price of a share of disney stock is $60. if a call option on this stock has a strike price of $65, the call a. is out of the money. b. is in the money.

Answers

A share of Disney stock is currently valued at $60 on the market. If the strike price of a call option on this stock is $65 then the call is out of the money.

Financial contracts known as call options provide the option buyer the right, but not the duty, to purchase a stock, bond, commodity, or other asset or instrument at a certain price within a predetermined window of time. The underlying asset is a stock, bond, or other thing. When the value of the underlying asset rises, the call buyer profits.

When compared to a call option, a put option entitles the holder to sell the underlying asset at a fixed price on or before the expiration date.

To know more about stock click here,

https://brainly.com/question/26128641

#SPJ4

at an output level of 18,200 units, you have calculated that the degree of operating leverage is 2.90. the operating cash flow is $59,500 in this case. ignore the effect of taxes. what will be the new degree of operating leverage for output levels of 19,000 units and 17,000 units? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Answers

For 19000 units operating leverage would be $94807.

For 17000 units operating leverage would be $50,039.

What is operating leverage?

Operating leverage or degree of operating leverage refers to the percentage change in earnings or operating cash flow related to the percentage change in a company's sales.

Solution:

Degree of Operating leverage will remain same 2.90 at all output levels.

Operating leverage of 2.00 means, if sales change by 1% then operating cash flow would change in the same direction by 2.9%

So,

If 1000 units are increased or decreased,

% Change in sales = (1000/18200) x 100 = 5.49%

So,

Operating cash flow would change by = 5.49 x 2.90 = 15.9%

Thus,

New operating leverage would be,

At 19000 units = 59,500 x 1.59 = $94,807

At 17000 units = 59,500 x (1 - 0.159) = 59500 x 0.841 = $50,039

To learn more about operating leverage visit the link given below

https://brainly.com/question/29690696

#SPJ4

structures predominate in firms with a single or narrow product focus. group of answer choices a) geographic b) functional c) product-team d) matrix e) divisional or sbu

Answers

Functional structures predominate in firms with a single or narrow product focus. Functional structures are organizational structures in which employees are grouped together based on the functions they perform.

What is a functional structure?Organizational structures known as functional structures group personnel according to the tasks they do. In a functional structure, employees who perform similar tasks or have similar skills are typically organized into departments or teams, and each department or team is responsible for a specific aspect of the organization's operations. For example, a functional structure might include departments for finance, marketing, sales, and production. Functional structures are often used in firms with a single or narrow product focus, because they allow the organization to specialize in a particular area and to develop expertise in that area. This type of structure also allows for clear lines of communication and decision-making within the organization, as well as efficient resource allocation. However, functional structures can also be inflexible and slow to adapt to changing circumstances, and they may not be well-suited to organizations with complex or diverse operations.

To learn more about functional structure refer :

https://brainly.com/question/16071307

#SPJ4

what is the potential for losing money in the stock market if an individual keeps their money invested for one year?

Answers

The prospect for financial loss You would have a larger than 1 in 4 probability of losing money if you made a placement in the stock industry for a year.

Apple, what kind of stock is that?

As a large-cap stock that is part of the S&P 500 and has a significant market capitalization, Apple is usually as among top holdings of both large-cap index funds and S&P 500 index funds.

How can I purchase stock?

The safest way to buy stocks is through a online stockbroker. After opening and funding your account, you may instantly buy stocks upon that investor's page.Other options include using a full-service stockbroker or buying shares from the company directly.

To know more about Stock market visit :

https://brainly.com/question/13400473

#SPJ4

a movie theater is a price-discriminating monopolist and charges a higher ticket price for late-evening showings. from this we know that:

Answers

The demand schedules of late-night moviegoers are completely inelastic. Because of this, monopolists raise the price of tickets.

When a monopolist becomes the sole supplier of a specific good or service, a monopoly has formed. This is distinct from a monopsony, which is when only one entity has the authority to make purchases of goods or services. It also differs from an oligopoly, which is characterized by a small number of vendors controlling a market.

Lack of viable substitute products, a lack of economic rivalry to create the good or service, and the potential for a high monopoly price considerably above the seller's marginal cost that results in excessive profit are the hallmarks of a monopoly.

To know more about monopolist click here,

https://brainly.com/question/29576612

#SPJ4

The term​ ________ is described as a​ "formal means of analyzing longminus−range investment​ alternatives."

a. capital budgeting
b. time value of money
c. payback period
d. annuity

Answers

The term​ capital budgeting is described as a​ "formal means of analyzing longminus−range investment​ alternatives."

The average yearly accrual accounting income as well as average investment are taken into account by the accounting percentage of returns technique.

The procedure a company uses to assess potential big projects or investments is called capital budgeting. Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new facility or a significant investment in a third party enterprise.

Therefore, the correct answer will be option (a).

To know more about investment​

https://brainly.com/question/15105766

#SPJ4

Deep Earth Extraction, Inc., operates a facility near Estuary Bay. Discharging waste from the facility into the bay can result in
a. penalties and damages.
b. penalties only.
c. damages only.
d. none of the choices.

Answers

A facility run by Deep Earth Extraction, Inc. is located close to Estuary Bay. Penalties and fines may be incurred for disposing of rubbish in the bay. The right response in this case is option A.

When one of these is polluted with hazardous compounds due to poor waste disposal, it can lead to contamination of the soil, water, or air. This not only has a negative impact on marine life and animals but also helps to create greenhouse gas consequences.

The Ecological Solid Waste Management Act of 2000, often known as the legislation, establishes standards for solid waste management and imposes fines of P300 to P1,000 on litterers and garbage dumpers. A different punishment option is performing community service for 1 to 15 days.

To learn more about waste disposal

https://brainly.com/question/29656543

#SPJ4

If a business decides to act outside of the prevailing ethical norms of that community: 1) It risks damage to its reputation and ill will. 2) There really is no risk to businesses since the community really needs the business to survive. 3) It only has to worry about the legal implications of its actions. 4) It takes the chance the law will impose fines against it. 5) There should be no concerns because the business can move to another community if it needs to.

Answers

If a business decides to act outside of the prevailing ethical norms of that community: 1) It risks damage to its reputation and ill will. Option 1 is correct.

What is meant by ethical norm?

Ethical norms establish the stage for a cogent working environment that contains justice, honesty, impartiality, and responsibility by providing guidelines for all organizations on how to behave well and avoid engaging in unethical behavior.

Honesty, compassion, and loyalty are among the other moral values that are encouraged by ethical norms. Additionally, moral norms cover rights such as the right to privacy, the right to be free from harm, and the right to life.

Three fundamental principles—respect for people, beneficence, and justice—among those commonly acknowledged in our cultural tradition are particularly important to the ethics of research involving human subjects.

Read more on ethical norms here: https://brainly.com/question/28538417

#SPJ1

To reduce the size of a country's national debt, a government could potentially take all of the following actions EXCEPT
A. Decrease the supply of government bonds
B. Decrease borrowing of private loanable funds
C. Increase taxes
D. Decrease expenditures
E. Finance spending by borrowing

Answers

To reduce the size of a country's national debt, a government could potentially take all of the following actions EXCEPT (E) Finance spending by borrowing.

The total of a country's yearly budget deficits, less any surpluses, is its national debt. When the government spends more than it brings in, there is a deficit. The government borrows money by offering debt obligations to investors in order to cover its budget deficit.

Increasing tax rates and decreasing government spending are the two apparent ways to minimize a budget deficit. The challenge, though, is that this fiscal tightening may result in slower economic development, which could lead to a greater cyclical deficit (government gets less tax revenue in a recession). The condition a country is in determines the best course of action to minimize fiscal imbalances.

To know more about National Debt, refer to this link:

https://brainly.com/question/3467411

#SPJ4

8. the arguments for restricting trade suppose there is a policy debate regarding the united states imposing trade restrictions on imported ball bearings: the president of the united states explains that it is necessary to impose trade restrictions, such as a tariff, on the ball-bearing industry to protect workers in the domestic ball-bearing industry. the president claims that without trade protection, there will be layoffs, causing many u.s. workers in the ball-bearing industry to be unemployed. which of the following justifications is the president using to argue for the trade restriction on ball bearings? national defense argument saving domestic jobs argument foreign export subsidies argument low foreign wages argument infant industry argument continue without saving

Answers

The justifications which the president is using to argue for the trade restriction on ball bearing industry is known as jobs argument. The Option C is correct.

What is jobs argument in economics?

The opponents of free trade argues that trade with other countries destroys domestic jobs. In our example, a free trade in steel would cause the price of steel to fall, they reducing the quantity of steel produced and thus reducing employment in the steel industry.

Some steelworkers would lose their jobs, yet, the free trade creates jobs at the same time that it destroys them. When people buy steel from other countries, those countries obtain the resources to buy other goods from country.

Its workers would move from steel industry to those industries in which the country has a comparative advantage. Even though the transition may impose hardship on ‘some workers in the short run, it will allows the people as a whole to enjoy a higher standard of living.

Read more about jobs argument

brainly.com/question/29650508

#SPJ1

Marketing activities amount to about one-half of every dollar that consumers spend.
a. True
b. False

Answers

The notion is untrue because marketing activities only account for around half of every dollar customers spend.

How would you define marketing?

The process of developing, communicating, delivering, and trading offerings that are useful to customers, clients, partnerships, and society at large collectively is known as marketing.

Why is marketing so crucial?

The advantages of advertising for your company is that it engages consumers and helps them decide whether to purchase your goods or services. A marketing strategy, which should be included in your business plan, also aids in creating and keeping demand, applicability, reputation, and competition. Growing a brand requires marketing at its core. It explains the advantages, costs, and USP of your brand, as well as why consumers should choose it.

To know more about marketing visit:

https://brainly.com/question/13414268

#SPJ4

to calculate the expected risk premium on a stock, one must subtract the ________ from the stock’s expected return.

Answers

To calculate the expected risk premium on a stock, one must subtract the risk-free rate from the stock’s expected return.

The risk-free rate is the amount of interest that an investor may potentially receive from a totally risk-free investment over a specific period of time. An asset's predicted additional investment return over and above the risk-free rate of return is known as a risk premium. Investors hope to make up for the risk they are incurring by getting a return on their investment. The result of this is a risk premium.

The risk premium formula is easy to calculate: just deduct the anticipated return on a certain asset from the risk-free rate, which is the actual interest rate paid on risk-free investments like Treasury securities and government bonds.

Learn more about Risk-free Rate here:

https://brainly.com/question/28168891

#SPJ4

The magnitude of operating leverage for Perkins Corporation is 4.5 when sales are $100,000. If sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b. 14.5% c. 45% d. 10%

Answers

The profit should rise by 45% in the event that sales reach $110,000.

Define operating leverage.

How well sales growth translates into increased operational profits is determined by operating leverage. It acts as a barometer for leverage and the volatility or riskiness of an organization's operating income.

Operational leverage is a financial statistic that measures the relationship between contribution margin and operating income. It demonstrated the rate at which operating income will change in reaction to a change in sales revenue, assuming fixed expenses and variable cost per unit stay constant.

Magnitude of operating leverage= 4.5

Sales:

Old= $100000

New= $110000

Percentage increase in sales:

(New-old)/old  =[tex]\frac{110000-100000}{100000}[/tex]

= 10%

Consequently, a percentage rise in profit might be anticipated:

Sales percentage growth times the degree of operating leverage

= 10% X 4.5

= 45%

Learn more about Operational leverage: https://brainly.com/question/29743788

#SPJ4

of the seven strategic priorities, which is the first priority and the most important consideration?

Answers

Of the seven strategic priorities, Rescue is the first priority and the most important consideration

What is Rescue?

Generally, to liberate from captivity, danger, or evil: rescue, deliver. They were pulled from the burning structure by the firemen who responded.

Deliverance, Ransom, Reclaiming, Redemption, and Redeeming are some popular synonyms for the word Rescue.

Although they all imply "to set free from captivity or danger," rescue refers to the process of setting someone free from an immediate threat by means of rapid or aggressive action. a ship that was sinking was saved, along with its crew.

Read more about Rescue

https://brainly.com/question/15890817

#SPJ1

Other Questions
shawn is approached by a medical staff team with a request to research and introduce a type of device that will help them record and transmit specific patient details. which technology would help the team measure and monitor blood pressure and then send those patient details from the smartphone to a phone as a message in case of emergencies? when government increased spending during the 1930s in an attempt to create jobs and stimulate the economy, this is an example of expansionary: imperial expansion relied on the increased use of gunpowder, cannons, and armed trade to establish large empires in both hemispheres. what are examples? how does colonialism, industrialism and the atlantic slave trade all relate to each other? who probably has more elastic demand for a hertz rental car? person a reserves a car online weeks before a trip; person b walks up to a hertz counter after he walks off an airplane after a four-hour flight? who probably gets charged more? explain the effect on the demand for reserves or the supply of reserves of the following fed policy action: an increase in the interest rate paid on reserves a. this would decrease the demand for reserves. b. this would decrease the supply of reserves. c. this would raise the interest rate at which the demand curve becomes horizontal. d. this would raise the interest rate at which the supply for reserves becomes horizontal. what is the slope and y intercept of y+1=4/3x and how do you find the answers what term describes the registration of a domain name (website address) solely for the purposes of trying to sell the name back to the rightful trademark owner for a profit? ethernet frames must be at least 64 bytes long to ensure that the transmitter is still going in the event of a collision at the far end of the cable. fast ethernet has the same 64- byte minimum frame size but can get the bits out ten times faster. how is it possible to maintain the same minimum frame size? where there is evidence that the utility of inventory goods, as part of their disposal in the ordinary course of business, will be less than cost, what is the proper treatment g what policy document generally describes mutual goals between organizations? choose the best response. Suppose Isabella wants to find out about how Formula 1 drivers earn points after each race. Isabella would find most of the information __________.A.in a newspaper article about famous Formula 1 driversB.in a chart listing the guidelines for Formula 1 vehiclesC.on a map of Formula 1 racetracks for driversD.on a website explaining the Formula 1 scoring system which of the following categories report disorders of a newborn related to slow fetal growth and fetal malnutrition? a. p08 b. p04 c. p07 the nurse notes that a client is in the habit of skipping breakfast and lunch and educates the client on the harmful effects of not getting enough nutrition. which responses are signs that the client has reached the action stage of health behavior change? select all that apply. one, some, or all responses may be correct. Determine the frequency of a sound wave with a 1-meter wavelength propagating through air at 75 F. Which is the recommended oral dose of aspirin for a patient with suspected acute coronary syndrome?a. 81 mgb. 325-650 mgc. 160-325 mgd. 40 mg When would it be more beneficial to use a dynamic routing protocol instead of static routing?- in an organization where routers suffer from performance issues- on a stub network that has a single exit point- in an organization with a smaller network that is not expected to grow in size- on a network where there is a lot of topology changes A river flows due east at 1.65 m/s. A boat crosses the river from the south shore to the north shore by maintaining a constant velocity of 10.7 m/s due north relative to the water. What is the velocity of the boat relative to shore? 12. How much tax would I pay on a Nintendo Wii (cost of $150) if the tax is 8%? what are the differences between stiffness (i.e., elastic modulus) and resistance to fracture (i.e., fracture toughness) values at room temperature for metals, ceramics, and polymers? which group of materials is higher or lower for which property? explain.