Define the term compounding and explain why it is so important in the area of saving.
What will be an ideal response?
Compounding refers to interest earned on previously earned interest. Each time interest is added to your savings total, the new interest is computed on this total amount. The more frequent the compounding, the higher the rate of return. The rate of return you earn on the money you save should be compared with the inflation rate. If your savings account is earning 2 percent and inflation is 3.5 percent, you will experience a loss of buying power.
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The primary purpose of the Constitutional Convention of 1787 was to limit the power of the federal government of America and restrict it from levying or collecting taxes
Indicate whether the statement is true or false
Which of the following is NOT part of the three-step process to preparing a spoken or written business message?
a. Identify the central idea of the message. b. Determine the likely receiver reaction to the message. c. Choose an inductive approach for a spoken message and a deductive approach for a written message. d. All of the above are part of the process.
Which of the following is not a key difference in the bargaining environment of the public and private sectors?
A. In the public sector, essential services cannot be easily outsourced and must be provided by the government. B. Public services are not bought and sold in economic markets. C. Politics plays a more important role in the public sector than in the private sector. D. The labor market does not affect the public sector as much as it does the private sector.
Caribbean Airlines has installed automated ticket machines in its major airport terminals that enable passengers to purchase tickets, obtain boarding passes and get seat assignments by inserting a credit card into the machine. A passenger using a Caribbean Airlines' automated ticket machine is playing the role of a:
A. Recruiter B. Competitor C. Contributor to quality and satisfaction D. Customer mix manager E. Productive resource