In most of the 1970 period, the fed appear to be most anti-inflation. The United States has been experiencing a pattern of rising prices since the late 1960s.
Inflation refers to an overall rise in the cost of goods and services throughout a nation. Inflation in United States started gradually increasing from yearly rates that had previously been less than 2 percent for several years.
The Federal Reserve tightened policy in 1973 in response to rising inflation rates. However, the Fed loosened its stance before adequately controlling inflation in response to increased unemployment. In December 1976, the annual inflation rate reached a low of 5% before rising once more.
According to the personal consumption expenditure index, prices had increased 7.7% from the previous year by January 1979, raising concerns that inflation would continue to climb. Concern was also raised regarding the US currency, which had declined 13% in value versus.
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Answer:
Not only does IAS 2 norm allow this, also US GAAP allows this. I believe that the reasoning behind that is the following:
Holding precious metals in inventory is actually considered an investment. Precious metals are commodities, and since they can be easily traded around the world, just having them increases a company's wealth. The revenue recognition principle (top of the inverted pyramid) applies here even to any individual that finds gold nuggets by accident in the country side (no need to be a mining business). The fact that you possess gold increases your personal assets and net wealth. The same applies to other precious metals. This happens because gold or other precious metals can be easily converted into cash (extremely liquid), e.g. this same individual can go to a local jewelry or or a pawn shop and sell the gold nuggets he found.
If finding a gold nugget increases an individual's net worth, then imagine what holding a ton of gold does to a company. What makes gold and silver so special is that they are accepted everywhere. Remember that until the early 1970s, the worlds' currencies were based on the price of gold (gold standard). Most central banks in the wold hold gold reserves and they also follow this same logic. Price of gold increases, the wealth of the nation increases.
Explanation:
a) A bank wishes to collect data on the number of customer services and the frequency of customer use of these services.
Answer:
The correct answer is (C)
Explanation:
Managers are the main factor which improves the overall operational structure of the company. They are one who communicates within the organisation and outside the organisation to increase business activities. Liaison is an important managerial role that involves connecting people to what they need. They talk within the company and outside to provide whatever the company needs. They are responsible to give consumers the best product possible.
The price of the share will be calculated as under. First, we will calculate the cost of equity.
Dividends = $ 5.56
Current market price = $ 37.96
Cost of equity = Dividends ÷ Current market price = $ 5.56 / $ 37.96
Cost of equity = 14.65 %
Now, The price of share will be calculated as -
Growth rate = 4 %
Dividend paid = $ 5.56
Cost of equity = (Expected dividend ÷ Price ) + Growth rate
14.65 % = [ ($ 5.56 * ( 1 + 4 %) ) / Price ] + 4 %
10.65 % = $ 5.7824 / price
Price = $ 5.7824 / 10.65 % = $ 54.29
