State two improvements of the Baumol-Tobin theory in relation to the Liquidity Preference Theory of Keynes? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph V Arial 10pt 1- 1- !!!
Answers
There are two main improvements of the Baumol-Tobin theory in relation to the Liquidity Preference Theory of Keynes.
Firstly, the Baumol-Tobin theory considers the opportunity cost of holding money, whereas the Liquidity Preference Theory does not. Secondly, the Baumol-Tobin theory recognizes that individuals need to hold money for transactions, whereas the Liquidity Preference Theory assumes that individuals hold money purely for speculative purposes.
The opportunity cost of holding money is an important consideration in the Baumol-Tobin theory. The theory recognizes that holding money means that individuals cannot invest that money and earn a return on their investment. Therefore, individuals will only hold a certain amount of money as it is necessary for transactions, and any surplus will be invested to earn a return. This is in contrast to the Liquidity Preference Theory of Keynes, which does not consider the opportunity cost of holding money.
The second improvement of the Baumol-Tobin theory is that it recognizes that individuals need to hold money for transactions. The theory assumes that individuals will need to make transactions, such as paying bills or buying groceries, and therefore need a certain amount of money readily available. This is in contrast to the Liquidity Preference Theory, which assumes that individuals hold money purely for speculative purposes, such as to take advantage of changes in interest rates.
The Baumol-Tobin theory improves upon the Liquidity Preference Theory in two ways. Firstly, it considers the opportunity cost of holding money, and secondly, it recognizes that individuals hold money for transactions as well as for speculative purposes.
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Related Questions
What is advertising??
Answers
Answer:
the activity or profession of producing advertisements for commercial products or services.
Explanation:
Answer:
the activity or profession of producing advertisements for commercial products or services.
"movie audiences are receptive to advertising"
advertisements collectively.
"despite being instructed to take the signs down, he says he has no intention of removing the advertising"
Explanation:
dvertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.
Costco Wholesale Corporation is an American multinational corporation which operates a chain of membership-only retail stores. You are an accountant and during your examination of the financial statements of Costco for the year ended December 31, Year 1, you discover net income in Year 1 is $25,000 but no adjusting entries have been prepared. Now you have to prepare the adjusting entries for Costco, and before you do so you discover the following items: a. An insurance policy covering three years was purchased by Costco on January 1, Year 1, for $2,100. The entire amount was debited to insurance expense. b. During Year 1, Costco Wholesale received a $500 cash advance from a customer for services to be provided in Year 2. The $500 was credited to sales revenue. c. All Costco's purchases of supplies were debited immediately to supplies expense. However, you discover that supplies costing $400 were on hand on December 31. d. Costco also borrowed $10,000 from a local bank on October 1, Year 1. Principal and interest at 12% will be paid on September 30, Year 2. No accrual was recorded for interest.
Answers
The financial statements for Costco Wholesale Corporation, adjusting entries need to be prepared. These include recognizing prepaid insurance for two years ($1,400) and adjusting insurance expense accordingly, deferring the $500 cash advance as unearned revenue.
Adjusting entries are necessary to ensure that financial statements accurately reflect the financial position and performance of a company. In this case, several errors and omissions were identified. First, the insurance policy purchased for three years needs to be recognized as a prepaid expense. Since one year has already elapsed, the adjustment involves reducing insurance expense by $700 ($2,100/3) and recognizing a prepaid insurance asset of $1,400 ($2,100 - $700).
Next, the $500 cash advance received for services to be provided in Year 2 should be recorded as unearned revenue, as it represents an obligation to provide future services. This adjustment reduces sales revenue by $500 and establishes a liability for unearned revenue.
The supplies costing $400 on hand at the end of the year were initially expensed, but they should be recognized as an asset. This adjustment reduces supplies expense by $400 and recognizes a supplies asset of the same amount.
Lastly, interest expense needs to be accrued for the loan from the bank. The $10,000 loan at a 12% interest rate for one year results in $1,200 of accrued interest expense.
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What criteria should Nena use in evaluating the alternatives?
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Nena needs to apply the SWOT analysis as her criterion. It makes it easier to comprehend the organization's advantages and disadvantages. It promotes the growth of strategic reasoning.
Using a SWOT analysis tool, you may identify the current strengths and weaknesses of your business and create a winning long-term plan.
SWOT analysis is a technique for identifying and analyzing internal strengths and weaknesses as well as external opportunities and threats that have an impact on present and future operations and aid in the formulation of strategic goals.
Not just for businesses, SWOT evaluations are used. SWOT analysis is a tool that people may use to set personal improvement objectives and participate in productive introspection.
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Complete question is,
What criteria should Nena use in evaluating the alternatives?
1. SWOT analysis
2. Ease of implementation.
3. Cost.
4. Ability to meet customer requirements.
Which of the knowledge management systems IS activities involves enterprise applications?
Answers
The knowledge management system's IS (Information Systems) activities that involve enterprise applications are typically categorized under the "Implementation" phase.
This phase focuses on deploying and integrating enterprise-wide applications and technologies to support knowledge management initiatives. Enterprise applications refer to software systems that are designed to support various business functions and processes across an entire organization. These applications are often large-scale and are used to manage critical areas such as customer relationship management (CRM), enterprise resource planning (ERP), supply chain management (SCM), and human resources management (HRM).
In the context of knowledge management systems, enterprise applications play a vital role in facilitating the capture, storage, retrieval, and sharing of knowledge within an organization. They provide a platform for employees to access and contribute to the organization's knowledge base, collaborate on projects, and leverage collective expertise.
Examples of enterprise applications used in knowledge management systems include:
1. Content Management Systems (CMS): These applications facilitate the creation, organization, and publishing of digital content, such as documents, articles, and multimedia files.
2. Collaboration Tools: Enterprise collaboration platforms enable real-time communication and collaboration among employees, allowing them to share knowledge, work on projects collectively, and engage in discussions.
3. Document Management Systems (DMS): These applications provide a centralized repository for storing and managing documents, ensuring version control, access control, and document retrieval.
4. Learning Management Systems (LMS): LMS platforms support the creation and delivery of online training and learning materials, enabling organizations to promote knowledge sharing and upskilling among employees.
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What are five questions you should ask yourself to help you determine the type of health care coverage that is most important to you?
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Cheap
Effective
Fast
Options
Safe
Where are questions examples?
Answers
Where question examples are Where are you headed? to inquire about the precise location to which a person is travelling, or "Remind me where you live" to inquire about the precise location at which a person resides.
An interrogative word, usually referred to as a question word, is a function word that is used to ask a question. Examples include "what," "which," "when," "where," "who," "whose," "why," and "whether." They are sometimes referred to as "wh-words" since the majority of them in English start with the letter Wh (see Five W's).
Here Examples of situations when queries are We use the term "where" in our queries if we want the other person to specify a specific place. You can ask someone about their destination or residence by using the words "Where are you going?" or "Remind me where you live," respectively.
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What is the relationship between insurance and successful financial management? 1. Why is insurance important? 2. Consider your home and possessions. What types of risks do you face? What insurance would you recommend to someone in a similar location? 3. What are personal, property, and liability risks? What are examples of personal, property, and liability risk? 4. Why is estate planning important? 5. What is the principle of indemnity? Why is this principle important?
Answers
Answer:
insurance is important in that it helps you indemnity the losses occured after the risk occurrence
Explanation:
insurance ensures that you are covered from all period and hazards
1. What is the relationship between insurance and successful financial management? Why is insurance important?
The relationship between insurance and successful financial management is important because while successful financial management helps with unexpected situations requiring emergency planning, insurance is a contract made to ensure that your assets are protected and damage paid for if that event occurs.2. Consider your home and possessions. What types of risks do you face? What insurance would you recommend to someone in a similar location?
You could be risked by fires, high winds, hail, and lightning damage to protect your possessions you would need Homeowners insurance. To be protected from natural disasters you may need additional coverage (if natural disasters occur often).3. What are personal, property, and liability risks? What are examples of personal, property, and liability risk?
Some personal, property, and liability risks would be poor health and old age, having your property damaged, and being responsible for something that happens that could lead to a lawsuit.4. Why is estate planning important?
Estate planning can be important because estate planning is about protecting your loved ones, transferring your assets to heirs.5. What is the principle of indemnity? Why is this principle important?
The principle of indemnity is compensation, ensuring that you will not lose any finances.What could be an industry I could choose because I’m really confused with this whole thing !!! Please help (this is photography but I put business)
Answers
Wildhorse Co. shows the following balances in selected accounts of its adjusted trial balance. Supplies $25,600 Supplies Expense 4,800 Accounts Receivable 9,600 Dividends 17,600 Retained Earnings 56,000 Service Revenue 86,400 Salaries and Wages Expense 32,000 Utilities Expense 6,400 Rent Expense 14,400
Answers
Wildhorse Co. had a net income of $27,200 ($86,400 - $32,000 - $6,400 - $14,400) and paid $17,600 in dividends, resulting in an increase of $9,600 in retained earnings.
Based on the given information, Wildhorse Co. reported service revenue of $86,400. Deducting the expenses, such as salaries and wages ($32,000), utilities ($6,400), and rent ($14,400), their net income is calculated as $27,200 ($86,400 - $32,000 - $6,400 - $14,400). The company also paid dividends amounting to $17,600. To determine the change in retained earnings, we subtract the dividends from the net income. Therefore, Wildhorse Co. experienced an increase of $9,600 in retained earnings ($27,200 - $17,600). Retained earnings represent the portion of net income that is retained by the company instead of being distributed to shareholders as dividends.
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answered
Sita and Zoya are two friends
belonging to Hindu and Muslim
religion. They start a
business of handicrafts together. They decide to
open the factory in rural area and give
employment opportunities to local residents.
a) Which form of business organisation have they
opted?
1 SEE ANSWER
Answers
They have chosen the partnership business structure:
Describe a partnership:In a partnership, parties who are referred to as business partners agree to work together to further their shared objectives. Individuals, companies, interest-based organizations, schools, governments, or combinations of these may be the partners in a partnership.
What is a partnership and what are its benefits?If there are less than 20 people involved and restricted liability is not required, think about forming a partnership. One benefit of a cooperation is that: Two or more heads are preferable to one. Your company is simple to launch and has modest startup expenses. The business has access to extra funding.
Briefing:In small- and medium-sized businesses, partnerships are a common type of company structure. One individual is unable to manage the growing scale of the company on their own. Therefore, a partnership between two or more people is formed to conduct business. The issue with sole proprietorships is beginning to be solved by this type of firm.
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Which of the following is NOT true about the Free Application for Federal Student Aid (FAFSA)?
You can fill out the FAFSA if you are an independent or a dependent.
The earliest you can submit your FAFSA is January 1st of each year.
You can fill the form out online or on paper.
Each state may have a different deadline for state financial aid.
Answers
Answer:
A
Explanation:because its true
Considering the mold materials used and economic requirements, explain why cooling rates are
higher in permanent mold casting processes compared to expendable mold casting processes.
Answers
Cooling rates are generally higher in permanent mold casting processes compared to expendable mold casting processes due to the materials used and economic requirements.
Permanent mold casting uses metal molds that are reused multiple times, whereas expendable mold casting uses molds that are destroyed after each use. In permanent mold casting, the metal molds can conduct heat more efficiently than the expendable molds used in processes like sand casting.
In addition, permanent mold casting is often used for high-volume production runs, which means that it is necessary to minimize cycle time and maximize production output to meet economic requirements. This is achieved by using higher cooling rates to reduce the time it takes for the castings to solidify and be removed from the mold.
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With imperfect conditions on the product side of the market, the MRP drops more quickly from a higher level of output and results in ___________ workers being hired than if the product market were perfect competition. With imperfect conditions on the product side of the market, the MRP drops more quickly from a higher level of output and results in ___________ workers being hired than if the product market were perfect competition.
Answers
The MRP drops more quickly from a higher level of output and results in Fewer workers being hired than if the product market were perfect competition.
What is Labor Economics?The study of the work force as a component of the production process is known as labor economics. All people who work for pay in the labor market, whether as employees, employers, or self-employed people, as well as those who are jobless but looking for work, are considered to be part of the labor force. In the field of labor economics, everything that has an impact on workers before, during, and after their working lives is studied. This includes childcare, education, pay and incentives, fertility, discrimination, their non-work time, and pension reforms. Labor markets can be geographically constrained within nations or regions or they can be worldwide. They function through the interaction of employees and employers. The mobility of workers inside and across these markets, as well as within and between their employers, is another focus of labor economics.Know more about Labor Economics with the help of the given Link:
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what is one of the distinguishing characteristics that sets terrorist financing apart from money laundering and makes it difficult to detect?
Answers
Answer:
The origin of the funds
Explanation:
hope it helped
The most basic difference between terrorist financing and cash laundering involves the starting place of the price range. Terrorist financing uses finances for an unlawful political cause, however, the cash isn't always necessarily derived from illicit proceeds.
What is money laundering?Money laundering involves disguising financial belongings in order that they can be used without detection of the unlawful pastime that produced them. Thru cash laundering, the crook transforms the economic proceeds derived from a crook pastime into finances with a seeming prison supply.
Money laundering is illegal due to the fact it's miles a way for criminals to benefit from crime and frequently involves multiple unlawful activities. Both the act and the foundation of money laundering make it unlawful.
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In order for money to work properly, individuals and businesses in a country
must be willing to receive it as payment for goods and services. This is an
element of which characteristic of money?
O A. Uniformity
B. Limited supply
C. Divisibility
D. Acceptability
Answers
Answer:
D
Explanation:
acceptability -this is because it needs to be accepted by the people before it can be used
T/F: organic growth in organizations occurs gradually, usually by simply increasing sales.
Answers
This statement- Organic growth in organizations occurs gradually over time, and it typically involves increasing sales, expanding market share, and improving existing products or services is true.
Rather than relying on mergers or acquisitions, organic growth involves a focus on internal processes and resources to achieve long-term sustainable growth.
Organic growth can take many forms, such as developing new products or services, expanding into new markets, increasing advertising and marketing efforts, and improving customer service.
It is a slower and more gradual process than growth through mergers and acquisitions, but it is often more stable and sustainable in the long run.
Organizations pursuing organic growth often invest heavily in research and development, as well as employee training and development. By fostering innovation and a culture of continuous improvement, companies can achieve steady and sustainable growth over time.
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How is the housing industry related to the economy? If the economy is doing well, what types of homes are being constructed and purchased? What if the economy is doing badly? Other than housing, what additional industries might the economy impact?
Answers
The housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
What is housing industry?An housing industry is an industry that encompasses building of housing. construction, engaging in commercial housing activities etc.
Generally, when an economy is doing well, it will be favorable to build house of high value as its gives higher confidence in the industry and economy,
Also, the additional industries that impact an economy includes Healthcare, Technology, Retail, Manufacturing industry etc
In conclusion, the housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
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Which of the following is an advantage of renting over
advantage of renting over buying a home?
Answers
Answer:
having to make a down payment..
An advantage of renting over buying a home and having to make a down payment. The correct option is D. Financial risks are lower when renting. You are aware of the precise monthly rent payment you will be making.
What is the most significant advantage of renting?The three biggest advantages of staying a renter, in Ramsey's opinion, are having more flexibility if you decide to move, not having to pay for home maintenance, and not having to spend as much money initially. Additionally, your landlord will handle all necessary repairs, upkeep, and other costs. There is no additional cost.
Renting offers convenience, consistent monthly costs, and maintenance assistance. Along with the concrete advantages of tax deductions and equity, home ownership also offers intangible advantages like a feeling of security and pride in one's possession.
Thus, the ideal selection is option D.
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7. Another example of opportunity cost is a company's cost of capital. Suppose a manufacturer wants to add
microwave ovens to its product line. To do this, it must invest $500,000 in new equipment.
Besides the original investment, the company estimates it would spend $200,000 per year on production
costs for labor and materials. It also estimates that it could sell about $225,000 worth of microwave ovens
each year. Would it benefit the company to manufacture the microwave ovens if it could earn 10 percent
interest by purchasing U.S. Treasury bonds with the $500,000? Explain your answer.
Answers
Answer:
You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.
Explanation:
alternative 1, build and sell microwave ovens:
initial outlay = $500,000
net cash flow per year = $225,000 - $200,000 = $25,000
alternative 2, invest in US securities:
investment = $500,000
net cash flow per year = $500,000 x 10% = $50,000
Opportunity costs are the benefits lost or extra costs resulting from choosing one activity or investment over another.
If you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000 = -$25,000.
Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000 = $25,000.
You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.
The calculation is as follows:alternative 1, build and sell microwave ovens:
initial outlay = $500,000
So,
net cash flow per year = $225,000 - $200,000 = $25,000
now
alternative 2, invest in US securities:
investment = $500,000
net cash flow per year = $500,000 x 10% = $50,000
In the case when you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000
= -$25,000.
Now
Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000
= $25,000.
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why are human resource metrics important in high-performance work systems
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Human resource metrics are essential in high-performance work systems because they enable organizations to measure, analyze, and improve various aspects of workforce performance.
These metrics facilitate informed decision-making, as they provide valuable insights into employee productivity, engagement, and satisfaction.
By utilizing HR metrics, companies can identify areas of improvement, set realistic goals, and evaluate the effectiveness of implemented strategies.
Additionally, HR metrics promote a culture of accountability and transparency, fostering a high-performing work environment.
In summary, human resource metrics play a crucial role in enhancing organizational performance and driving continuous improvement in high-performance work systems.
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Two reasons why it is important for a chocolate manufacturing company(or any company) to develop new products?
Answers
Breton Woods Standards were found to be inadequate mainly because
Answers
Answer:
A key reason for Bretton Woods' collapse was the inflationary monetary policy that was inappropriate for the key currency country of the system.
Explanation:
The US decision to suspend gold convertibility ended a key aspect of the Bretton Woods system. The remaining part of the System, the adjustable peg disappeared by March 1973.
For external reporting, generally accepted accounting principles
require that costs be classified as either variable or fixed costs.
Yes/no - Explain
Answers
No, for external reporting, generally accepted accounting principles (GAAP) do not require costs to be classified solely as either variable or fixed costs. GAAP focuses more on the proper presentation and disclosure of financial information, including costs, in the financial statements.
Generally accepted accounting principles (GAAP) provide a framework for preparing and presenting financial statements. They ensure that financial information is reliable, relevant, and comparable across different entities. However, GAAP does not mandate the classification of costs as solely variable or fixed.
While it is common for companies to analyze and classify costs as variable or fixed for internal management purposes, GAAP allows for a more nuanced approach to cost classification. Costs can have both variable and fixed components, and they can also be classified as semi-variable or semi-fixed.
In external financial reporting, the focus is on presenting the financial position, performance, and cash flows of the company. This includes providing relevant and reliable information about the nature and composition of costs incurred. Companies are required to disclose significant cost components and provide explanations regarding cost behavior, but they are not obligated to classify costs solely as variable or fixed.
In summary, while GAAP requires the proper presentation and disclosure of costs in financial statements, it does not mandate a strict classification of costs as variable or fixed. The classification of costs as variable, fixed, or other categories depends on the specific circumstances and needs of the company.
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Which of the following situations would require that the seller recognize revenue over time rather than at a point in time? A. Physical possession of the asset has been transferred to the buyer. B. The buyer has legal tuled to the asset. c. Benefits are received by the buyer as the seller performs Q. Rewards and risk of ownership remain with the seller.
Answers
Revenue would be recognized over time as the seller performs and the buyer receives benefits from the seller's performance.
In the situation where rewards and risk of ownership remain with the seller, it would require that the seller recognize revenue over time rather than at a point in time. This is because revenue recognition generally occurs when control of the asset has been transferred to the buyer.
However, if the seller still retains the risks and rewards associated with the asset, it indicates that control has not yet been transferred.
Therefore, revenue would be recognized over time as the seller performs and the buyer receives benefits from the seller's performance. This type of revenue recognition is typically seen in long-term contracts or projects where the seller provides services or goods over a period of time.
It is important for the seller to recognize revenue accurately and in compliance with the relevant accounting standards.
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Which types of postsecondary education are examples of traditional academic education? Check all that apply.
associate degree
apprenticeship
bachelor’s degree
technical school degree
Answer: 1,3
Answers
An apprenticeship studies under a master of a trade.
A technical school degree is training in a field specific to what you want to get a job in, like air conditioning repair.
Answer:
associate degree and bachelor’s degree is the answer
Explanation:
just did it trust me :)
Suppose that, from 1985 to 1986, unemployment fell from 7.2 to 7.0 percent and inflation fell from 3.8 to 1.1 percent. an explanation of these changes might be that the
Answers
An explanation for the situation when unemployment fell from 7.2 to 7.0 percent and inflation fell from 3.8 to 1.1 percent is that aggregate supply curve shifted to the right
What is an aggregate supply?An aggregate supply refers to the overall supply of goods and services that is produced within an economy at a price in a period of time.
In conclusion, when productivity increases or the price of key inputs falls, the the aggregate supply curve shifts to the right and makes lower inflation, higher output, lower unemployment possible.
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PLZZ extra points and brainlist
Think of a product or service that you believe to be dangerous. Write a letter to the Attorney General's
office of Virginia describing the product and why you think it is unsafe
Answers
Answer:
product drugs
Explanation:
can mess you up mentally and is bad for you and is banned to use and the more you use it the more you will be addicted
Which problems does Jason seem to face as an entrepreneur? Jason currently runs a small manufacturing business. Jason’s parents, who ran the business for years, handed over the business to their only son two years ago. However, Jason is not interested in his family business, and his performance as an entrepreneur has been very poor. The main problem is that Jason is not 1. competitive 2. driven 3. energetic enough to succeed in the manufacturing business because he lacks the 1. passion 2. creativity 3. determination for it.
Answers
Answer:
driven,passion
Explanation:
. Determine the monthly payments of principal and interest for a 20 year loan
e. Determine their total monthly payment, including homeowners' insurance and taxes
f. Determine whether the couple will qualify for the 20 year loan
g. Determine how much of the first payment on the loan is applies to the principal.
Answers
In order to determine the monthly payments of principal and interest for a 20-year loan, we can use the loan amount, interest rate, and loan term to calculate the amortized monthly payments.
e) By adding the monthly payments of principal and interest to the homeowners' insurance and property taxes, we can determine the total monthly payment.
f) By considering the couple's income, credit score, and debt-to-income ratio, we can evaluate whether they qualify for the 20-year loan.
g) With an amortization schedule and the loan details, we can determine the specific amount that applies to the principal in the first payment.
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Oil reserves buried deep underground are _____. Please choose the correct answer from the following choices, and then select the submit answer button. infinite take hundreds of years to replenish largely inside U.S. borders finite and take millions of years to replenish take hundreds of years to replenish and largely lie outside U.S. borders
Answers
Answer:
finite and take millions of years to replenish
Explanation:
Oil reserves can be regarded as a the amount of crude oil which can be recovered technically at a cost which is feasible financially as regards present price of oil. Therefore, there will always be change in reserve with the price, compare with oil resources, that encompass all oil which can be technically recovered at any price.
Oil reserves can also be explained as estimate amount of crude oil that is been located in a particular economic region. oil reserves always posses potential of being extracted through current technological constraints. Calculations of Reserves based on a proven/probable basis, which means that oil pools which is situated in unattainable depths, cannot be said to be part of a nation's reserves. It should be noted that Oil reserves buried deep underground are finite and take millions of years to replenish