Donovan's $200,000 CD matures. He deposits $20,000 into his checking account, buys a CD for $80,000, and puts $100,000 into his money-market mutual fund. How does this affect M1 and M2?
What will be an ideal response?
He cashed in a large time deposit, which was not part of M1 or M2. He put $20,000 into an M1 asset (checking account), and $180,000 in M2 assets (MMMF and small time deposit). M1 rises by $20,000. Since M1 is part of M2, M2 rises by $20,000 + $180,000 = $200,000.
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The term incremental cost refers to
A) the difference in total costs between alternatives. B) a cost that does not entail any dollar outlay but that is relevant to the decision-making process. C) the profit forgone by selecting one choice instead of another. D) a cost that constitutes expenses to be incurred even though there is no activity.
Discuss how conflict of ideas and personal conflict relate to the concepts of functional and dysfunctional conflict.
What will be an ideal response?
The PEG ratio is equal to a company's P/E ratio divided by its growth rate
Indicate whether the statement is true or false
If you have the exchange rates for converting U.S. dollars to yen and U.S. dollars to the euro, you could convert from yen to euros by using a:
A) Spot rate B) Indirect rate C) Counter rate D) Cross rate